By David Akinmola
Insurance stocks have quietly emerged as one of the brightest stars of the Nigerian equities market in 2025. The NGX Insurance Index has soared 82% year-to-date, outpacing the broader market’s 37% gain and trailing only the Consumer Goods Index.
Among the standout players are AXA Mansard Insurance Plc and Cornerstone Insurance Plc but which offers the better bet for investors?
AXA Mansard Leads the Pack in Scale and Value
AXA Mansard has surged 101% year-to-date, lifting its market capitalization to ₦148.5 billion and securing its position as the third most valuable insurance stock on the NGX. Cornerstone has also performed impressively, up 78% to ₦116 billion, but AXA Mansard’s larger scale and market leadership provide a competitive edge.
While both firms have benefited from rising premiums, AXA Mansard boasts a stronger operational foundation. Its insurance revenue climbed 24% to ₦81.2 billion, underlining its ability to capture a bigger slice of the market despite higher claims. Although cost pressures weighed on margins, AXA Mansard still retains a solid position and remains on track to deliver consistent growth over the long term.
Superior Efficiency and Investor Appeal
On key profitability metrics, AXA Mansard comes out on top. Its return on equity (ROE) stands at 12%, comfortably ahead of Cornerstone’s 8%, signaling greater efficiency in turning shareholder funds into profits. At a P/E ratio of 19x, Mansard is also more reasonably priced than Cornerstone’s 32x, offering better value for growth-focused investors.
Despite a dip in half-year profit due to FX reversals, AXA Mansard’s five-year compound annual growth rate of 39% underscores its resilience and capacity to scale. Its history of steady earnings growth and lower valuation relative to peers makes it a compelling long-term play.
Bottom Line: A Buy for AXA Mansard
Both stocks have rewarded investors handsomely this year, but AXA Mansard’s size, superior ROE, and attractive valuation give it the edge.
While Cornerstone remains an appealing dividend stock with a higher yield (4.23% vs. Mansard’s 2.73%), its stretched valuation limits upside potential. For investors seeking stability and growth in Nigeria’s booming insurance sector, AXA Mansard stands out as the stock to accumulate now.
