Nigeria’s insurance sector was one of the NGX’s standout performers in 2025. Here are the top-performing insurance stocks of 2025 to keep an eye on in 2026.
How Insurance Stocks Fared in 2025
In 2025, the NGX Insurance Index climbed 65.5% during the year. The insurance sector’s combined market capitalisation surged by 93% year-on-year to approximately ₦904 billion as of December 24, 2025. This was a remarkable performance that reflects a fundamental shift in how the market views insurance stocks, no longer as laggards but legitimate growth and income plays.
This growth was driven by several factors. One was the signing of the Nigerian Insurance Industry Reform Act in August 2025. This proved to be a watershed moment as it triggered a 41% surge in the Insurance Index within just one week, the biggest weekly gain since official records began! This legislation mandated a 500% increase in capital requirements, with new benchmarks set at ₦25 billion for non-life insurance, ₦15 billion for life insurance, and ₦35 billion for reinsurance firms.
The recapitalisation agenda, though it was initially viewed as a burden, ultimately strengthened investor confidence. It promised more robust balance sheets, reduced systemic risk, and the ability to underwrite larger policies. Beyond this regulatory reform, improving profitability, rising premiums, and enhanced investment income from insurers’ holdings in government securities, equities, and bonds contributed their share to the sector’s appeal. A largely stable exchange rate and foreign portfolio participation reaching ₦2.2 trillion, which was the highest since 2007, further boosted sentiment.
Looking ahead to 2026, analysts anticipate a sustained growth that will be supported by ongoing recapitalisation, improved balance sheet strength, selective consolidation, and gradual gains in insurance penetration. However, there are risks which includes subdued consumer confidence, intense pricing competition, regulatory execution delays, and potential yield moderation. All this requires careful monitoring.
How Insurance Companies Generate Revenue
Before diving into specific stocks, understanding the insurance business model is essential. Insurance companies primarily earn through premiums paid by policyholders for life, non-life and health coverage. However, investment income often rivals or exceeds underwriting profits. Insurers in turn invest collected premiums in government securities, equities, bonds, and real estate, to generate steady returns that bolster their bottom lines.
Reinsurance arrangements allow these companies to then transfer risk exposure to reinsurance firms, as a way of protecting them against solvency and enabling underwriting of larger policies. Some insurers even diversify their investment into pensions, health maintenance organisations, and asset management, to create fee-based income streams that are similar to banks’ non-banking subsidiaries.
The Top Performers of 2025
The following stocks were the best performers from 2025 based on market capitalisation growth, profitability trends, and overall market strength. These are the insurance stocks worth watching as Nigeria’s underwriting sector enters a transformative phase.
LASACO Assurance – 437.55%
LASACO led the pack with a staggering 437.55% increase in market capitalisation, reaching ₦27.59 billion. This dramatic appreciation was thanks to aggressive positioning by investors betting on the company’s ability to navigate the recapitalisation landscape while capitalising on improved earnings prospects. LASACO’s went from a relatively obscure player to one of the year’s biggest gainers thanks to the reform-driven optimism that reshaped valuations.
Mutual Benefits Assurance – 422%
Mutual Benefits delivered an equally impressive 422% surge, with its market cap hitting ₦63.99 billion. The company has established itself among the sector’s larger players with an asset base exceeding ₦100 billion as of the first half of 2025.
Sovereign Trust Insurance – 346%
STI posted a 346% gain, bringing its market capitalisation to ₦57.19 billion. This triple-digit appreciation showed the broad-based nature of the 2025 rally, where nearly all listed insurance counters participated in the upward movement.
AIICO Insurance – 152%
Market cap grew 152% to ₦138 billion, to cross the symbolic ₦100 billion threshold. AIICO was among the sector’s dominant players. It’s substantial assets exceeded ₦100 billion, allowing it to meet regulatory capital requirements comfortably. The company’s scale allows it to underwrite larger policies and generate higher investment returns from its asset pool. This makes it attractive to investors seeking stability and growth.
Universal Insurance – 132%
Universal recorded a 132% gain, with market capitalisation reaching ₦18.56 billion from ₦8 billion previously. While smaller than sector leaders, Universal Insurance was the higher risk-reward segment that appealed to investors who were willing to scrutinise operations more closely in exchange for potentially outsized returns.
NEM Insurance – 119%
NEM delivered 119% market cap growth to ₦120.89 billion. This cemented its position as one of Nigeria’s premier insurance franchises. NEM reported the highest profit after tax in 2024 among listed insurers and posted one of the strongest returns on equity on a trailing twelve-month basis. The company’s consistent profitability, strong asset base, and dividend history make it a core holding for dividend-seeking investors.
Cornerstone Insurance – 77.06%
Achieved a 77.06% increase, with market capitalisation reaching ₦105 billion. Cornerstone ranks among the top six insurers by asset base, controlling more than ₦100 billion in assets. The company has show steady profit growth over five years and maintains the operational strength needed to compete effectively in a consolidating sector.
AXA Mansard – 51%
AXA Mansard posted a 51% gain, bringing its market cap to ₦117 billion. As one of Nigeria’s most recognised insurance brands backed by international expertise, AXA Mansard combines scale, profitability, and operational efficiency. The company’s asset base exceeds ₦100 billion, and its diversification into health insurance and other segments provides multiple revenue streams beyond traditional underwriting.
Consolidated Hallmark Holdings
Consolidated Hallmark rounds out the list with impressive long-term fundamentals despite a more modest 2025 performance. Over five years, Consolidated Hallmark recorded the highest compound annual growth rate in profits at 101%, showing exceptional expansion. The company also leads in accumulated operating cash flow, reflecting genuine cash-generating capacity rather than merely paper profits.
Coronation Insurance
Coronation completes this selection with solid fundamentals and an asset base exceeding ₦100 billion. The company’s market capitalisation growth reflected broad confidence in management’s ability to navigate regulatory changes while maintaining profitability. Coronation’s steady performance appeals to conservative investors seeking exposure to established franchises.
How to Invest in Insurance Stocks
Investors can purchase insurance stocks through licensed stockbrokers or online trading platforms that are connected to the Nigerian Exchange. On average, listed insurers trade around ₦4.57 per share, making them accessible to retail investors with modest capital.
When evaluating insurance stocks, focus on companies with strong asset bases, consistent revenue and profit growth, reliable dividend histories, and healthy efficiency ratios including claims ratio, return on equity, solvency ratio, and capital adequacy. Valuation metrics like price-to-earnings and price-to-book ratios relative to sector averages help identify potentially undervalued opportunities. Trading liquidity matters too, ensuring you can enter and exit positions without significant price impact.
As of mid-2025, the 21 listed insurers controlled approximately ₦1.7 trillion in total assets against a combined market capitalisation of roughly ₦1 trillion, suggesting the market values these companies at about 1.6 times book value. This indicates growing confidence while leaving room for further appreciation if companies efficiently deploy capital and manage risks.
Read: How to Evaluate Stocks
Important Disclaimer
This article is for informational purposes only and does not constitute financial, investment or professional advice. The insurance stocks mentioned are based on historical 2025 performance and should not be interpreted as recommendations to buy or sell securities. Past performance does not guarantee future results. Insurance stocks carry risks including underwriting losses, regulatory changes, market volatility, and company-specific operational challenges.
Investors should conduct thorough due diligence, review company financial statements, consider their risk tolerance and investment objectives, and consult qualified financial advisors before making investment decisions. The author and publisher assume no liability for any losses or damages resulting from reliance on information presented in this article.
We advice that you always invest responsibly and only what you can afford to lose.
