Kayode Tokede
Despite the recent insurance sector recapitalisation, the Nigerian Exchange Limited (NGX) Insurance Index has depreciated by 8.65 per cent Year-till-Date (YtD) to emerge as the worst-performing segment on the bourse.
The 8.65 per cent YtD performance as of August 21, 2026 makes the NGX Insurance Index the only major sectoral index that is in negative territory.
Other Indices, NGX Banking, Oil & gas, Consumer Goods, Industrial Goods and All-share indexes have recorded gains of 63.18 per cent, 85.76 per cent,1.62 per cent, 82.84 per cent and 53.81per cent, as of August 21, 2026, respectively.
The poor performance marks a sharp reversal of a positive two-year trend.
In 2024, the insurance index delivered a return of 107.74 per cent, making it the second-best performing sector after oil and gas, which gained 159.81 per cent.
The sector also maintained a strong rally in 2025, outperforming the all-share index and delivering a return of about 79 per cent to shareholders by August of that same year.
The poor performance also reflects the financial results of several insurance companies.
For AXA Mansard Insurance Plc, revenue rose by 22 per cent to N160.56 billion for the year ended December 31, 2025. However, profit before tax plunged by 81 per cent to N6.12 billion from N31.69 billion recorded in 2024.
A look at the share price of some companies under the sector showed AXA Mansard Insurance that began the year at N13.70 per share but has since lost 13.14 per cent off that price valuation to close August 21, 2026 at N11..90 per share.
AXA Mansard also began the year at N13.70 and has lost approximately 13.1 per cent, while Sunu Assurances Nigeria Plc has fallen by about 45.5 per cent to N3.00 per share after opening the year at N5.50 per share.
Cornerstone Insurance Plc also dropped by 65 per cent to close August 21, 2026 at N2.08 per share from N5.96 per share, while Coronation Insurance Plc depreciated by 36 per cent to close August 21, 2026 at MM2.08 per share from N3.25 per share the stock p
Operators attributed the sector’s underperformance to investor concerns over fears of share dilution from capital raised, weak earnings growth among some operators and sustained profit-taking because of the strong rally recorded in the previous two years.
They noted that many investors are taking a cautious position after a successful recapitalisation.
The operators warned that market sentiment may remain weak in the near term as investors await clarity on industry consolidation.
However, they expressed optimism that the sector would retain strong long-term potential due to the opportunities expected to emerge after the recapitalisation process is completed.
