The NGX Insurance Index opens 2025 with impressive gains, achieving a 26.9% rise in the first trading week, which concludes on January 3. This surge pushes the index from 667.88 points to 847.59 points, marking its best weekly performance in over a decade. The growth is supported by a trading volume of 679 million shares, reflecting renewed investor confidence in the insurance sector.
In 2024, the sector faced significant hurdles, particularly from financial pressures related to bank recapitalization policies. These challenges caused a 10% drop in the index between April and May. Despite this, a bullish trend emerged in August, driving the index upward for five consecutive months and culminating in a 123% year-to-date increase by December 2024.
Key Performers
Seven insurance companies stand out in the first week of 2025, each recording gains above 33%. These top performers include:
- Prestige Assurance Plc
- Sovereign Trust Insurance Plc
- Coronation Insurance Plc
- Universal Insurance Plc
- Guinea Insurance Plc
- Consolidated Hallmark Holdings Plc
- Cornerstone Insurance Plc
The NGX Insurance Index records a remarkable 123% growth in 2024, starting the year at 321 points and closing at 718 points by December. Despite facing setbacks in April and May, the index regains momentum in the latter half of the year. December alone contributes a 47% monthly increase, highlighting the sector’s recovery and resilience.
In 2024, the insurance sector becomes the second-best performer on the Nigerian Exchange, outpaced only by the Oil and Gas sector, which achieves a 160% annual growth. Other sectors show modest increases, with Industrial Goods growing 31.7%, Consumer Goods at 27.56%, and Banking at 21.13%.
The early surge in 2025 signals sustained investor optimism. Industry reforms, improving financial metrics, and strategic partnerships contribute to the sector’s positive outlook. As the year progresses, the insurance sector aims to solidify its standing as a leader in the Nigerian financial market, creating significant opportunities for growth and investment.
