Insurance stocks add N59bn in H1 as sector capitalisation hits N586.86bn
The market capitalisation of insurance stocks listed on the Nigerian Exchange (NGX) rose by N59.37 billion in the first half (H1) of 2025, reaching a total of N586.86 billion as of June 30. This marks a significant gain from N527.50 billion at the beginning of the year, reflecting renewed investor confidence in the sub-sector.
Data from the NGX show that the Insurance Carriers, Brokers, and Services sub-sector—comprising 20 listed firms including NEM Insurance, AXA Mansard, and AIICO Insurance—delivered a strong performance in the period under review. The NGX Insurance Index also appreciated by 4.50 per cent in H1 2025.
Among the top performers, NEM Insurance recorded a 76.35 per cent increase to close at N17.90 per share by June 30, while Cornerstone Insurance rose 18.89 per cent to N4.28. AXA Mansard Insurance also posted a 12.80 per cent gain to settle at N9.25 per share.
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Analysts attributed the uptrend to the sector’s robust financial performance and improving investor sentiment. In 2023, the insurance industry surpassed the N1 trillion milestone in Gross Premium Written (GPW), and by 2025, this figure had surged to N1.6 trillion, representing a 55.8 per cent year-on-year growth. The non-life segment accounted for 68.9 per cent of the total, with key drivers including oil and gas, fire, and motor insurance.
A report by Afrinvest Limited titled ‘Transitioning: Pivot to Sustainable Growth’ highlighted a 66.3 per cent increase in underwriting performance year-on-year. It also noted significant growth in total service results and underwriting margins, citing improved operational efficiency across the board.
The implementation of IFRS 17 accounting standards, which emphasise transparency in liability and profit recognition, also played a role in enhancing investor confidence, despite creating some earnings volatility during the transition period.
Looking ahead, analysts expect ongoing reforms to reshape the sector. The Nigeria Insurance Industry Reform Bill 2024 and a proposed risk-based capital framework released by the National Insurance Commission (NAICOM) are likely to trigger consolidation in the industry.
Afrinvest observed that the anticipated minimum capital thresholds may encourage mergers, capital injections, and asset revaluations, ultimately resulting in a more concentrated market made up of stronger, better-capitalised players.
“With recapitalisation underway, the insurance sector is poised for transformation in 2025,” the report said, forecasting a shift towards high-value segments driven by improved capital adequacy, enhanced corporate governance, and greater operational efficiency.
