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NSIA Insurance Limited is set to operate exclusively as a non-life insurer after agreeing to transfer its life insurance portfolio to CHI Life Assurance Limited, as the company moves to sharpen its focus on general and motor insurance.
The insurer disclosed the development in Lagos following its 2026 Annual General Meeting, with Chairman Dr. Adesegun Akin-Olugbade stating that the proposed transaction has received approval in principle from the National Insurance Commission (NAICOM).
Completion of the portfolio transfer remains subject to the conclusion of outstanding legal and regulatory processes.
NSIA Targets Deeper Non-Life Market Presence
According to Akin-Olugbade, the decision to exit life insurance is part of NSIA Insurance’s longer-term strategy to consolidate its resources around the non-life segment.
The company plans to concentrate particularly on general and motor insurance, where management believes it can achieve greater scale and strengthen its market position.
The chairman said the narrower focus would allow the insurer to deploy resources more efficiently without having to spread its attention across multiple insurance classes.
He added that the company’s ambition is to build a stronger presence among households and businesses across Nigeria.
N18bn Claims Paid in 2025
NSIA Insurance is also pointing to its claims settlement record as an important component of its growth strategy.
The company paid N18 billion in claims during 2025, taking the total value of claims settled over the past four years to N47.9 billion.
Motor insurance remains a particular area of focus, with the company highlighting efforts to accelerate the claims process and improve customer experience.
Management said its claims teams are structured to inspect reported motor claims promptly and make offers quickly where applicable.
The insurer said its approach is aimed at putting customers ahead of short-term profit considerations.
Insurance Revenue Rises to N33bn
NSIA Insurance also reported stronger financial performance for 2025.
Insurance revenue increased by 18% to N33 billion, while profit after tax exceeded N2 billion during the year.
Between 2021 and 2025, the company recorded cumulative profit after tax of N9.3 billion.
Its total assets increased to N53 billion, while shareholders’ funds rose by 74.3%, from N13.6 billion in 2021 to N23.7 billion in 2025.
The financial performance comes as insurers across Nigeria adjust to higher capital requirements introduced under the country’s insurance-sector reforms.
N6bn Retained Earnings Capitalised
Shareholders also approved the capitalisation of N6 billion from retained earnings as part of NSIA Insurance’s efforts to strengthen its capital position under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The exercise increased the company’s issued share capital from N9 billion to N15 billion through a bonus issue.
Under the arrangement, shareholders received two new shares for every three shares held, allowing the insurer to increase its capital base without requiring additional cash contributions from shareholders.
NSIA Among Recapitalisation Compliant Insurers
The strategic shift comes after NSIA Insurance successfully met the industry’s latest recapitalisation requirements.
The company was among 43 insurance and reinsurance operators that met the July 31, 2026 deadline set by NAICOM.
The regulator’s list comprised 23 non-life insurers, 10 life insurers, eight composite insurers and two reinsurers.
The recapitalisation programme began in August 2025 following the enactment of NIIRA 2025, which gave operators a 12-month period to meet revised minimum capital requirements.
NAICOM has described the exercise as an important step in strengthening the financial capacity of Nigeria’s insurance industry.
According to the regulator, the stronger capital base should enable insurers to underwrite larger and more complex risks, improve their ability to meet policyholder obligations and attract additional domestic and international investment.
CHI Life Takes Over Life Portfolio
For CHI Life Assurance, the transaction represents an opportunity to expand its life insurance business through the addition of NSIA’s existing portfolio.
CHI Life commenced operations after receiving its operational licence from NAICOM in March 2025 and is a subsidiary of Consolidated Hallmark Holdings Plc. The company says it was capitalised with N10 billion in line with regulatory requirements.
The transfer will therefore reshape the positions of both companies, with NSIA becoming more focused on non-life insurance while CHI Life takes on the transferred life portfolio.
Digital Innovation and Market Expansion Ahead
Looking beyond the portfolio transfer, NSIA Insurance said its next phase will focus on disciplined underwriting, digital innovation and deeper market penetration.
The company plans to use the next five years to strengthen its position in Nigeria’s non-life insurance market, with general and motor insurance expected to remain central to that strategy.
The move marks a significant change for an insurer that previously operated across both life and non-life segments.
With regulatory approval in principle already secured and the remaining legal processes underway, NSIA’s transition to a dedicated non-life insurer is set to become another notable development in Nigeria’s rapidly changing insurance landscape.
