Despite Nigeria’s insurance industry comprising 21 listed companies, the sector remains one of the smallest contributors to total equity value on the Nigerian Exchange (NGX), accounting for less than one per cent of overall market capitalisation as of the end of 2025.
Market data compiled by SAMTL indicate that the combined valuation of all listed insurance stocks stood below ₦1 trillion at the close of trading on December 31, representing approximately 0.97 per cent of total NGX capitalisation. This underscores the long-standing marginal position of insurance equities within Nigeria’s capital market ecosystem.
However, market participants expect this dynamic to begin shifting in 2026, driven by a combination of regulatory recapitalisation requirements and anticipated structural benefits from Nigeria’s evolving tax framework.
Insurance Stocks Deliver Selective Outperformance
While the sector’s aggregate market weight remains thin, individual insurance stocks recorded exceptional price performance in 2025, rewarding investors who positioned early in expectation of recapitalisation-led restructuring.
Sovereign Insurance Plc emerged as the standout performer, delivering a 241.07 per cent year-to-date gain, making it one of the strongest-performing stocks on the NGX across all sectors. AIICO Insurance Plc followed closely, posting a 165 per cent return over the 12-month period.
NEM Insurance Plc also recorded a significant 144.75 per cent appreciation, reflecting increased bargain hunting as investors positioned ahead of expected capital injections that could unlock premium growth and improve underwriting capacity.
Universal Insurance Plc posted an 83.33 per cent year-on-year increase, buoyed by improved market sentiment as shareholders began taking concrete steps toward strengthening balance sheets across the industry. AXA Mansard Insurance Plc saw its market valuation climb by 67 per cent, supported by investor confidence in its retail and corporate penetration strategy to drive earnings expansion.
Lagging Performers Reflect Recapitalisation Risks
Not all insurers benefitted from the renewed optimism. SUNU Assurance Plc underperformed sharply, with its market value declining by approximately 49 per cent in 2025. The drop reflects negative investor sentiment surrounding the company’s operational outlook and perceived vulnerability to recapitalisation pressures.
Tax Reform Seen as Structural Demand Catalyst
Beyond recapitalisation, analysts expect Nigeria’s tax framework to become a longer-term growth catalyst for the insurance industry. As taxable individuals and corporate entities seek legitimate avenues to optimise tax exposure, demand for insurance products—particularly life and annuity policies—is expected to rise.
This structural shift could gradually improve premium volumes, profitability, and ultimately the capital market relevance of insurance stocks, setting the stage for a broader sector re-rating beyond 2025.
, accounting for less than one per cent of overall market capitalisation as of the end of 2025.){kind=link}