Emmanuel Orimisan,Abuja
Insurance stocks on the Nigerian Exchange have emerged as some of the top gainers in 2025, as investor appetite for the sector surges on the back of regulatory reforms, rising premiums, and improved earnings performance.
The rally follows the implementation of the Insurance Reform Act, which has driven stronger capitalization requirements and enhanced consumer confidence, attracting new investments into the industry. Analysts say these structural changes, coupled with aggressive digital adoption by insurers, are positioning the sector for sustainable growth.
Listed insurers such as Mutual Benefits Assurance, LASACO Assurance, and Cornerstone Insurance have seen significant share price appreciation, with some delivering triple-digit returns in the past 12 months. Market data shows Mutual Benefits surged over 500% year-on-year, while LASACO and Cornerstone recorded gains of more than 200%.
“Insurance is becoming one of the most attractive plays on the exchange as reforms unlock value that has long been underpriced,” said an investment analyst at a Lagos-based brokerage firm. “Institutional and retail investors are now taking positions ahead of anticipated dividend growth and increased market penetration.”
The industry’s bullish momentum is also fueled by Nigeria’s widening insurance gap. With penetration still below 1% of GDP, insurers are leveraging technology to reach underserved markets, further boosting revenue prospects.
As confidence builds, market watchers predict the ongoing rally could extend into 2026, provided macroeconomic stability and regulatory compliance remain intact.
