The Insurance index on the Nigerian Exchange tumbled sharply as profit-taking and negative sentiment drove selloffs in major listed insurers, particularly AXA Mansard and AIICO Insurance.
The bearish momentum erased significant value from the insurance sector, and analysts warned that the absence of new catalysts could prolong the trend. Stockbrokers noted that the local bourse had reached overbought levels in recent weeks, making the correction both fast and severe.
Despite the setback, the Nigerian Exchange has maintained a healthy year-to-date return of 36%, underpinned by earlier rallies triggered by the new Insurance Act. However, uncertainties remain over whether insurers can meet recapitalization requirements within the one-year compliance window.
At Wednesday’s close, the Insurance index posted the steepest sectoral loss, plunging 4.46%. AXA Mansard fell 9.95%, while AIICO slid 7.02%, alongside additional pressure on Universal Insurance Plc.
Other sectors also posted declines, with Consumer Goods (-1.32%), Banking (-0.55%), Oil & Gas (-0.44%), and Commodities (-0.08%) weighed down by losses in NB (-5.71%), UBA (-2.03%), OANDO (-3.09%), and ARADEL (-0.45%). The Industrial sector was the sole bright spot, advancing 0.23%.
Investors appear to be shifting toward safer assets, including government bonds and other naira-denominated debt instruments, amid rising yields in the fixed-income market.
