The Insurance Carriers, Brokers, and Services sub-sector of the Nigerian Exchange (NGX) comprises 20 listed stocks, including prominent names such as NEM Insurance, AXA Mansard Insurance, and AIICO Insurance.
As of June 30, 2025, the sub-sector had added N59.37 billion in market capitalization, rising from N527.50 billion at the start of the year to N586.86 billion. The NGX Insurance Index also reflected this positive trend, posting a 4.50% increase in the first half (H1) of the year.
In terms of individual stock performance during the review period:
- NEM Insurance saw a significant 76.35% rise, closing at N17.90 per share.
- Cornerstone Insurance gained 18.89%, ending at N4.28.
- AXA Mansard Insurance rose by 12.80%, closing at N9.25 per share.
Industry analysts attributed this upward trajectory to the sector’s robust financial performance. In 2023, the insurance industry surpassed the N1 trillion mark in Gross Premium Written (GPW), with figures projected to reach N1.6 trillion in 2025—a 55.8% year-on-year increase. The non-life insurance segment accounted for 68.9% of total GPW, spurred by high demand in oil and gas, fire, and motor insurance segments.
According to Afrinvest Limited’s 2025 Insurance Sector Report, titled “Transitioning: Pivot to Sustainable Growth”, the industry saw a 66.3% year-on-year increase in revenue, along with improved underwriting performance. These gains translated into stronger service results and better underwriting margins, signaling improved operational efficiency across the sector.
The report also highlighted the implementation of IFRS 17 accounting standards, which prompted insurers to enhance transparency in how they report liabilities and profits. However, the transition has introduced some earnings volatility.
Additionally, recent legislative and regulatory developments—such as the passage of the Nigeria Insurance Industry Reform Bill 2024 and the risk-based capital exposure draft released by NAICOM—are set to reshape the industry. These initiatives are expected to raise minimum capital requirements, potentially triggering a wave of mergers, capital infusions, and asset revaluations. The likely outcome is a more consolidated market, with fewer but financially stronger players capable of underwriting larger risks.
Looking ahead, Afrinvest forecasts a transformative year for the insurance sector in 2025. Ongoing recapitalization efforts are expected to drive mergers and acquisitions, as well as strategic capital raising. As the market strengthens, analysts anticipate a pivot toward high-value business lines, underpinned by improved governance, stronger capital bases, and enhanced operational efficiency.
