The NGX Insurance Index has emerged as the best-performing sectoral index on the Nigerian Exchange Limited (NGX) in the first eight months of 2025, delivering a remarkable +78.13% year-to-date (YtD) return as of August 31.
This performance more than doubles the +35.03% YtD gain recorded by the broader NGX All-Share Index (ASI) over the same period.
Sector Performance Overview
The index, which tracks the share price performance of listed insurance companies, closed August at 1,279.00 points, slightly lower than its previous week’s close of 1,283.59 points following a 0.36% week-to-date dip.
Despite this short-term pullback, the sector has maintained strong momentum throughout the year.
The rally has been fueled by renewed investor interest in low-priced insurance equities, improved corporate earnings, and the industry’s repositioning to capture Nigeria’s untapped retail and micro-insurance markets.
Key Drivers of Growth
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Low Price Entry Point: Insurance stocks remain among the most affordable on the NGX, creating opportunities for high percentage gains.
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Notable Performers: Sovereign Trust Insurance Plc (+14.23%), Cornerstone Insurance Plc (+12.36%), and Guinea Insurance Plc (+9.15%) all featured on the top gainers’ list in the last trading week of August, reinforcing investor appetite.
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Sector Reforms: Regulatory efforts to deepen penetration and recapitalization initiatives have supported renewed optimism.
Comparative Performance
This sharp divergence highlights the insurance sector’s resilience, outperforming more established sectors such as banking (+38.81% YtD), industrial goods (+36.36% YtD), and consumer goods (+82.07% YtD but from a higher base).
Market Outlook
With just four months left in the year, analysts expect the insurance index to remain a key driver of equity market returns. Sustained interest in micro-cap insurance stocks, coupled with regulatory reforms and potential mergers in the sector, could support further gains.
However, profit-taking, as seen in AIICO Insurance Plc (–13.61% last week), may trigger intermittent pullbacks. Long-term investors remain optimistic that the sector will consolidate its position as one of the most profitable plays on the NGX in 2025.