Five insurance companies listed on the Nigerian Exchange have emerged among the best-performing stocks of 2025 so far, delivering 230 per cent year-to-date (YTD) gains.
The Nigerian insurance sector, which has long been overlooked by investors and often perceived as stagnant, is currently experiencing an unexpected resurgence.
The unexpected rally, which has drawn the attention of institutional investors and retail traders alike, comes on the back of sweeping regulatory reforms that have triggered renewed investor optimism in a sector long dismissed as sluggish and undercapitalised.
Data from the Nigerian Exchange Limited (NGX) showed that as at the close of transactions on September 15, 2025, Mutual Benefits Assurance emerged as the most active stock in the sector. It soared by an extraordinary 556 per cent since the beginning of the year.
According to the exchange, the company, which began trading in 2025 at just 61 kobo, closed its Monday trading at N4, lifting its market capitalisation to N80.2 billion.
Similarly, Sovereign Trust Insurance also posted an unprecedented gain of 157 per cent YTD, climbing from N1.12 kobo in January to N2.88, despite recording a five per cent dip on Monday’s trading.
Its current market capitalisation stands at N41 billion, placing it among the most-watched mid-cap stocks on the NGX.
NEM Insurance, too, has delivered a remarkable performance, rising from N10.95 kobo to N27.45 kobo per share, representing a 151 per cent increase in valuation and boosting its market capitalisation to N138 billion.
In addition, AIICO Insurance, a longstanding player in Nigeria’s insurance landscape, has gained 187 per cent YTD, closing Monday’s session at N4.10 kobo.
Despite a 1.7 per cent drop from the previous trading day, the company’s current valuation of N150 billion signals robust investor confidence in its restructuring strategy and earnings outlook.
Cornerstone Insurance, though slightly trailing the others, has nonetheless gained 101 percent since January, rising to N7.25 per share and bringing its market capitalisation to N132 billion.
The unprecedented uptrend in these stocks reflects a recent re-rating of the insurance sector following regulatory shakeups designed to reposition the industry.
The National Insurance Commission (NAICOM) capital recapitalisation directive, which raised the minimum capital thresholds for life, non-life and reinsurance companies, has triggered significant restructuring across the board.
Many insurance firms have embarked on capital raising programmes, strategic mergers and technology upgrades to meet compliance deadlines and strengthen operational resilience.
Speaking on the renewed activity in the sector, independent investor Amechi Egbo stated it is the first time in years that genuine investor enthusiasm is being directed toward insurance equities.
According to him, the transformation underway is not merely speculative but a combination of tangible restructuring efforts, increased underwriting capacity, and greater disclosure obligations as factors that have helped restore credibility to an industry that had long struggled with trust issues.
Egbo noted that what investors are responding to is not just hype, but measurable signs of reform and the potential for sustainable profitability.
The sector has faced tremendous challenges not only in the last few years but also in the last decade, which ranged from issues of poor penetration to apathy.
Historically, low rates in the past 12 years have meant riskier investments for insurance companies, and firms were further put to the test by an increase in claims in 2020-2021 due to the coronavirus pandemic.
However, the sector appeared to have maintained a steady growth in premium generation, asset base and market size in efforts to meet the N1 trillion market margin in premium income generation set by the Market Development and Restructuring Initiative (MDRI) of the NAICOM.
President of the Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, also expressed optimism about the sector’s new trajectory.
He said the insurance industry stands out as one of the most surprising winners on the NGX this year, outperforming expectations and drawing new attention from local and foreign investors alike.
According to Igbrude, this resurgence is a clear testament to the power of structural reforms, renewed investor sentiment, and the vast untapped potential still embedded in Nigeria’s underpenetrated insurance market.
He pointed out that beyond market performance, the real value of the reforms is beginning to reflect in the service experience of policyholders.
Igbrude observed that several insurers have already started implementing faster claims processing, expanding coverage across retail and commercial segments and adopting more transparent pricing and policy terms.
