Amid Recapitalisation, NGX Insurance Index Records -8.65% YtD Performance

The Nigerian Exchange Limited (NGX) Insurance Index has faced a significant downturn, recording a -8.65% year-to-date (YtD) performance as of August 21, 2026. This marks the only major sectoral index in negative territory, contrasting sharply with other segments such as banking, oil & gas, consumer goods, industrial goods, and the All-share index, which have all seen gains ranging from 53.81% to 85.76%.

This downturn represents a stark reversal from the positive trajectory witnessed in recent years. In 2024, the insurance index delivered an impressive 107.74% return, placing it as the second-best performing sector after oil and gas, which soared by 159.81% over the same period. The index also maintained strong growth in 2025, outperforming the all-share index with a return of approximately 79% by August 2025.

The current underperformance can be attributed to various factors affecting the sector. Several insurance companies have reported mixed financial results. For instance, AXA Mansard Insurance Plc saw a 22% increase in revenue to N160.56 billion for the year ended December 31, 2025, but its profit before tax dropped by an alarming 81% to N6.12 billion from N31.69 billion in 2024.

Share prices of companies within the sector have also dwindled. AXA Mansard Insurance Plc, for example, began the year at N13.70 per share but has since lost 13.14% of its value, closing at N11.90 per share as of August 21, 2026. Similarly, Sunu Assurances Nigeria Plc and Cornerstone Insurance Plc have experienced significant declines, falling by 45.5% and 65% respectively.

Operational analysts attribute the poor performance to investor concerns over potential share dilution resulting from recent capital raised, weak earnings growth among some insurers, and sustained profit-taking following the robust rally observed in the previous two years. Investors are adopting a more cautious stance after the successful recapitalisation, leading to market sentiment being cautious.

While some operators express concern that market sentiment may remain weak in the near term as investors await further clarity on industry consolidation, they remain optimistic about the sector's long-term potential. They highlight the anticipated opportunities that will emerge once the recapitalisation process is fully completed.