Nigeria’s insurance sector recorded a sharp rally in 2025, with combined market capitalisation climbing by 93 per cent year-on-year to approximately N904bn as of 24 December 2025.
The surge reflects broad-based gains across 17 underwriters listed on the Nigerian Exchange Limited, driven by renewed investor confidence, improved earnings outlooks, and sustained re-rating of previously undervalued stocks.
An analysis of the stock market data done by The PUNCH indicated that nearly all listed insurance counters posted significant appreciation over the period, positioning the sector as one of the strongest performers on the equities market and underscoring a notable shift in sentiment toward the industry.
In this analysis, The PUNCH looked at the market capitalisation of AIICO Insurance, AXA Mansard, Consolidated Hallmark Holdings, Cornerstone Insurance, Coronation Insurance, Guinea Insurance, International Energy Insurance, LASACO Assurance, Linkage Assurance, Mutual Benefits Assurance, NEM Insurance, Prestige Assurance, Regency Assurance, Sovereign Trust Insurance, SUNU Assurances, Universal Insurance and Veritas Kapital Assurance.
AIICO, NEM Insurance, AXA Mansard and Cornerstone Insurance took the lead in terms of market capitalisation gains in the period under review, as their market caps grew by 152 per cent, 119 per cent, 51 per cent and 77.06 per cent, to N138bn, N120.89bn, N117bn and N105bn, respectively. They all crossed the N100bn market capitalisation threshold within the year, reflecting investors’ robust positioning in the stocks.
The likes of Lasaco, Mutual Benefits and Sovereign Trust recorded triple- and quadruple-digit gains in their market capitalisation. LASACO Assurance saw its market cap rise by 437.55 per cent to N27.59bn as Mutual Benefits hit N63.99bn, marking a 422 per cent rise, and Sovereign Trust rose by 346 per cent to N57.19bn. The stocks of Universal Insurance also performed positively during the year, resulting in a 132 per cent gain in its market capitalisation, which hit N18.56bn from N8bn in the previous year.
While most of the insurance stocks appreciated, thus boosting their market capitalisations, SUNU Assurances stands out as the notable laggard, posting a year-on-year decline. Its share price dropped by 37.30 per cent to N5.16 per share, and its market cap dipped to N29.98bn as of Wednesday, 24 December 2025, from N47.82bn in the previous year.
“The decline was hinged on a collapse in its net profit margins from 34.5 per cent down to just 0.8 per cent in 2025. Structural challenges within the insurance sector and a lack of non-cash earnings cover for dividends further dampened investor appetite,” added Afrinvest in its 2025 review. To strengthen its capital base, the shareholders of the company have approved a N9bn recapitalisation plan to enable SUNU Assurances to meet the new minimum capital requirement for non-life insurers under the Nigerian Insurance Industry Reform Act 2025.
Apart from the individual market cap appreciation of the stocks year-to-date, the insurance index on the NGX has recorded a 59.61 per cent gain, making the sector one of the top gainers this year, alongside the consumer goods index, which has gained 122 per cent year-to-date.
On the exchange, 2025 recorded strong market participation, marked by sustained bullish sentiment punctuated by periodic profit-taking. Afrinvest, in its FY:2025 Review & 2026 Outlook, said that investor activity was buoyed by reform-driven developments, the implementation of key policies, and rising market awareness, collectively driving elevated trading volumes.
July stood out as trading volumes spiked significantly and market activity peaked, reflecting the year’s strongest rally. This surge was largely driven by increased buying in fundamentally strong stocks, boosted by robust corporate earnings releases, as well as heightened interest in insurance tickers following the signing of the Nigerian Insurance Industry Reform Act by the President. Trading activity also picked up notably in September, fuelled by continued optimism in key sectors and renewed investor confidence.
In terms of outlook for the sector, the investment house anticipates that the insurance sector is expected to sustain steady growth into 2026, “supported by ongoing recapitalisation, which would allow insurers to underwrite larger risks. Improved balance sheet strength, selective consolidation, and gradual gains in insurance penetration should further underpin earnings.
“Key risks to the outlook include subdued consumer confidence, intense pricing competition, regulatory execution delays, and a faster-than-expected moderation in yields.”
