Sunu Assurances has been crowned the standout performer of the Nigerian equities market in 2024, achieving an astronomical year-to-date (YTD) growth of 877.27%, the highest in the sector. Starting the year at N1.10, the stock initially remained dormant until a dramatic surge in September sent it soaring, ultimately concluding the year as the insurance sector’s most impressive performer.
The company’s exceptional financial performance in 2024 further bolstered its position, with December proving to be a pivotal month. A remarkable 155.9% year-on-year increase in pre-tax profit, reaching N5.4 billion for the nine months ending September 30, 2024, fueled investor confidence, pushing Sunu Assurances to the top of the Nigerian stock market. This meteoric rise not only solidified the company’s dominance in the sector but also highlighted its ability to capitalize on favorable market conditions, cementing its place as the top-performing stock of the year.
Sunu Assurances’ surge is a testament to the resilience and growth of the Nigerian insurance sector. Alongside its stellar performance, other insurance stocks also saw significant gains. Veritas Kapital, a non-life insurance company, emerged as a strong contender, securing the seventh spot with a YTD gain of 267.57%. The stock, which began the year at N0.37, surged to a peak of N1.51 in September, reflecting the broader bullish sentiment that swept through the market.
Coronation Insurance Plc, rounding out the top 10 performers, achieved an impressive YTD growth of 230.88%. The stock, which opened the year at N0.68, gained momentum through the year, closing January at N0.77. The bullish trend intensified in December, propelled by a sector-wide rally and strong financial results. Coronation’s report of a 93.4% year-on-year increase in insurance revenue to N34.1 billion for the nine months ending September 30, 2024, added to the investor optimism surrounding the stock.
These remarkable performances are indicative of a transformative year for Nigeria’s insurance sector, driven by regulatory reforms, heightened investor confidence, and a positive shift in market fundamentals. The strong performance of these companies underscores the resilience of the sector and its capacity to thrive even amid market challenges.
As 2025 began, the sector’s upward trajectory has shown no signs of slowing down. The NGX Insurance Index, a key benchmark for the Nigerian insurance sector, kicked off the year with an extraordinary rally, delivering a staggering week-to-date gain of 26.9% by January 3. This performance marks the index’s strongest weekly surge since 2013, ascending from 667.88 points to 847.59 points, buoyed by robust trading volume of 679 million shares.
The sharp rise in the NGX Insurance Index highlights a renewed wave of investor confidence, even as the sector continues to navigate lingering challenges from the previous year. The Insurance sector has been on a pronounced bullish trend since the latter half of 2024, with the index closing higher each month from August through December. Ending the year with an impressive YTD gain of 123%, the index has maintained its upward momentum into the new year, further solidifying the sector’s position as one of the market’s standout performers.
With such momentum heading into 2025, the Nigerian insurance sector is poised to continue its growth, presenting exciting opportunities for investors and companies alike. Sunu Assurances’ extraordinary performance in 2024 serves as a beacon for the sector’s potential and sets the stage for another year of impressive returns.
