Insurance Stocks’ Capitalisation Surges To N586.86bn In H1

Insurance stocks listed on the Nigerian Exchange (NGX) have recorded a total market capitalisation of N586.864 billion in the first half of the year 2025.

The Insurance Carriers, Brokers and Services sub-sector has 20 stocks listed under it, among which are

NEM Insurance, AXA Mansard Insurance, AIICO Insurance and others.

The sub-sector grew by N59.366 billion from N527.498 billion at which it opened trading the year 2025 to close at N586.864 billion as of June 30, 2025. Also, the NGX Insurance index rose by 4.50 per cent in H1.
Looking at some of the stocks’ performance for the period under review, NEM Insurance rose by 76.35 per cent to N17.90 on June 30, 2025. Cornerstone Insurance recorded a six-month gain of 18.89 per cent to close at N4.28, while AXA Mansard Insurance up by 12.80 per cent to N9.25, per share.

Analysts highlighted the strong performance of the insurance sector, which exceeded the N1 trillion mark in Gross Premium Written (GPW) in 2023, demonstrating a year-on-year increase of 55.8 per cent to reach N1.6 trillion in 2025. The non-life segment of insurance, representing 68.9 per cent of GPW, saw robust demand driven by industries such as oil and gas, fire, and motor insurance.

The Afrinvest Limited in its 2025 Insurance sector report titled, ‘Transitioning: Pivot to sustainable Growth’ noted “improvement in underwriting performance, with industry revenue increasing by 66.3 per cent year-on-year. The results from the insurance sector also showed substantial growth in total service results and enhanced underwriting margins, reflecting operational efficiency.”

The report further detailed “the impact of adopting IFRS 17 regulations, which encouraged insurers to adjust their reporting practices for better transparency regarding liabilities and profit recognition. Despite these positive strides, challenges remain, including earnings volatility during the transition period.

“The recent passage of the Nigeria Insurance Industry Reform Bill 2024 and the release of a risk-based capital exposure draft by NAICOM indicate an impending industry shake-up. Proposed minimum capital thresholds may lead to increased mergers, equity injections, and asset revaluations, setting the stage for a more concentrated market with fewer but stronger insurers capable of managing larger risks.”

Looking forward, Afrinvest anticipated a transformative year for the insurance sector in 2025, buoyed by recapitalisation initiatives that will likely catalyse mergers, acquisitions, and strategic capital raising efforts, saying that as the market strengthens, there is expected to be a shift towards high-value segments, driven by better capital adequacy, improved governance, and more efficient operations.