The Nigeria Liability Insurance Pool (NLIP) has announced a significant financial performance for the 2024 fiscal year, posting a net surplus of ₦708.24 million, a 118 per cent increase from the ₦324.9 million recorded in 2023. The impressive performance was disclosed in the pool’s annual report presented during its 15th Annual General Meeting (AGM) held in Lagos on Friday.
The NLIP, which operates as a risk-pooling platform for member insurance companies, provides reinsurance for a wide range of third-party liabilities. These include motor and general third-party liabilities, workmen’s compensation, employer’s contingent liabilities, and builders’ and occupiers’ liabilities, among others.
Chairman of the Pool, Gboyega Lesi, attributed the growth to several key factors, most notably a 48 per cent increase in Gross Written Premiums, which rose from ₦1.79 billion in 2023 to ₦2.57 billion in 2024. He also highlighted an increase in investment income, which grew to ₦225 million from ₦147 million the previous year, supporting the Pool’s overall profitability.
“The year under review reflects effective risk pooling, improved claims management, and disciplined cost control,” Lesi stated. “Our underwriting surplus of ₦695 million is a testament to prudent underwriting practices, while our total assets rose by 48 per cent from ₦1.83 billion in 2023 to ₦2.70 billion in 2024.”
In accordance with its mandate, the Pool announced that the surplus would be distributed equitably to all contributing members, subject to statutory provisions and Board approval.
On the outlook for 2025, Lesi emphasised the critical role of compulsory insurance enforcement in driving industry growth. He noted the ongoing collaboration between the National Insurance Commission (NAICOM), state governments, and federal agencies in ensuring compliance with compulsory insurance laws, particularly in areas such as Motor Third Party, Group Life, and Builders’ Liability.
He also outlined other growth areas shaping the Nigerian insurance landscape, including increased adoption of microinsurance and insurtech solutions, which are helping to extend coverage to small businesses, informal workers, and low-income earners. Additionally, Lesi mentioned the growing demand for speciality insurance lines such as cyber liability, marine insurance, and energy risk coverage, all of which are being driven by digital transformation and infrastructure expansion across the country.
According to him, collaborations between traditional insurers and fintech companies are also reshaping the delivery of insurance products. Through embedded insurance models, customers now receive insurance coverage through platforms linked to consumer loans, health technologies, and asset financing products.
Another regulatory milestone expected to impact the market is NAICOM’s Risk-Based Capital (RBC) framework, which is set to roll out in the medium term. Lesi said the policy would influence market behaviour by encouraging capital adequacy, pricing discipline, and product innovation.
For the NLIP, these developments offer room for expansion and relevance. “There are new opportunities to pool more risks in speciality and emerging sectors, in line with the growing complexity of the Nigerian business environment,” Lesi said.
He also hinted at plans to form strategic partnerships with government agencies and member companies to widen the Pool’s reach. Moreover, the Pool is expected to adopt automation and digital tools to streamline claims processing, improve underwriting support, and enhance reporting standards.
The Pool also restated its alignment with NAICOM’s broader objectives, particularly in promoting data transparency, IFRS 17 compliance, and strong governance practices.
The year under review was marked by remarkable progress in both operational efficiency and financial performance,” Lesi said. “Despite global uncertainties and local economic pressures, the Nigeria Liability Insurance Pool remained focused on delivering value, managing risks prudently, and strengthening the integrity of its risk-sharing model.”
