By David Akinmola
Nigeria’s publicly listed insurance companies are experiencing their strongest financial performance in years, driven by improved regulatory compliance, higher premium income, and renewed investor confidence.
The resurgence is raising optimism about the long-underperforming sector’s role in deepening financial inclusion and providing long-term capital for the economy.
Data from the Nigerian Exchange (NGX) shows that shares of several top insurance companies have rallied significantly in the past year, outperforming broader market indices and drawing the attention of institutional and retail investors alike.
Among the leading performers are AXA Mansard ,AIICO Insurance, Mutual Benefits Assurance, and NEM Insurance, which have posted strong revenue growth, improved underwriting margins, and enhanced claims settlement ratios—metrics that had long dragged down industry valuations.
According to analysts, this newfound momentum is the result of a combination of factors, including:
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Stricter enforcement by the National Insurance Commission (NAICOM), which has pushed operators toward stronger risk management and transparency;
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Improved digitisation of operations, enabling better customer onboarding, claims processing, and distribution;
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A recovering economy, which has allowed more businesses and individuals to take up insurance policies; and
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Tightened monetary policy, which has made insurers’ fixed-income portfolios more profitable due to rising interest rates.
“For the first time in a decade, the insurance sector is being seen as a viable part of the capital market and not just an afterthought,” said Michael Adebayo, a financial analyst at MarketScope Research. “With several companies posting double-digit growth in premium income and cutting their combined ratios, this is a genuine turnaround story.”
The development is especially significant given the insurance sector’s historically low contribution to Nigeria’s Gross Domestic Product (GDP)—hovering at less than 1% compared to global averages of 7–10%. Stakeholders believe that strong market performance could trigger a virtuous cycle, boosting public awareness, increasing penetration (currently below 3%), and encouraging policy uptake.
Investors are also paying close attention to the sector’s recapitalisation drive, which has pushed underperforming or undercapitalised firms to merge, restructure, or exit entirely—leaving behind a more efficient and resilient industry.
“This clean-up is long overdue. What we’re seeing now is the early impact of a more disciplined, tech-savvy and capitalised insurance ecosystem,” said Ngozi Ezeanya, an investment banker with Crestline Capital.
The improved market performance also matters for macroeconomic reasons. Insurance companies are long-term institutional investors, and stronger balance sheets could enable them to support infrastructure finance, mortgage-backed securities, and agricultural risk-sharing facilities—all key priorities for Nigeria’s economic transformation.
NAICOM has also signaled its intent to further drive innovation in microinsurance, insurtech, and parametric products to expand coverage, especially among low-income and informal sector workers.
Still, challenges remain. Issues such as trust deficits, claims delays, low awareness, and distribution bottlenecks continue to affect public perception of the industry.
But for now, the outlook is bright. With listed insurers delivering solid quarterly results, increasing returns to shareholders, and repositioning for a more competitive market, industry watchers say Nigeria’s insurance sector may finally be ready to play its full part in the country’s financial ecosystem.
