Amid Sector Reforms, 20 Insurance Companies’ Market Cap Rise to N944.67bn

Kayode Tokede  

Amid major reforms in the insurance sector, the market capitalisation of AIICO Insurance Plc and 19 others listed on the Nigerian Exchange Limited (NGX) recorded a significant spike in 2025 to N944.67 billion, about 79.4 per cent increase over N526.59 billion in 2024. 

The major insurance companies on NGX saw significant increase in stock price as the sector underwent significant reforms to modernize and enhance its operations. 

Part of these reforms include: the Nigeria Insurance Industry Reform Bill, 2024 aimed to consolidate outdated laws to provide a more robust regulatory environment, increased capital requirements, focus on deepening penetration, and claims management and consumer protection.

The reforms represent a significant shift, aiming to modernise the industry and increase its contribution to Nigeria’s economic growth. However, the proposed changes require careful implementation to balance industry development with inclusivity and fairness.

With a strong Year-to-Date (YtD) performance above 65.6 per cent in 2025, the NGX insurance Index outperformed the overall NGX All-Share Index  performance of 51.2 per cent in 2025.

THISDAY learnt that the N944.67 billion market capitalisation in 2025 was driven by four standout stocks: AIICO Insurance Plc, Axamansard Insurance Plc, Cornerstone Insurance Plc, and NEM Insurance Plc.

The four firms contributed about N504.75 billion or 53.44 per cent out of the N944.67billion overall insurance sector market capitalisation  amid significant increase in stock price in 2025. 

Specifically, AIICO Insurance saw its market capitalisation move from N52.35billion in 2024 to N138.73billion in 2025, on the backdrop of 165per cent increase in stock price to N3.79 per  share in 2025 from N1.43 per share in 2024. 

For NEM Insurance, its market capitalisation  closed 2025 at N134.44billion from N54.93 billion,  following a 145per cent growth in stock price to N26.8 per share on NGX.  

The market capitalization  of AXA Mansard Insurance moved from N73.8billion to N123.3billion in 2025 as its stock price appreciated by 67.07 per cent  to N13.70 per share  from N8.20 per share it closed for trading in 2024.

In addition, the market capitalisation of Cornerstone Insurance jumped to N108.27billion in 2025 from N65.4billion in 2024. 

Cornerstone Insurance, according to THISDAY findings, saw a 66 per cent growth in stock price to N5.96 per share from 3.60 per cent it opened for trading in 2025.

As the July 2026 deadline approaches, further capital market activity is expected, with mergers, acquisitions, and strategic partnerships likely to feature prominently among smaller and mid-tier operators.

Currently, LASACO Assurance had announced that its shareholders have overwhelmingly approved a plan to increase the company’s minimum share capital from about N11.08billion to N36.08billion. 

This will be executed through a combination of a rights issue and a private placement. The move is strategically aimed at exceeding the revised statutory minimum of N25billion for composite insurers under NIIRA 2025, thereby strengthening their underwriting capacity, solvency margins, and competitive positioning in a tightening market.

The  likes of SUNU Assurances, Sovereign Trust Insurance, Linkage Assurance, Guinea Insurance, Veritas Kapital Insurance, and International Energy Insurance, have disclosed on the NGX that their boards have approved plans to raise a combined total of about N118.60billion. These funds are to be secured through rights issues, private placements, or public offers, pending shareholder approval.

Amid looming regulatory deadlines, reports suggest insurers face growing pressure from brokers, who are increasingly selective about where they place business.

Brokers now demand stronger balance sheets, improved claims-paying ability, and demonstrable financial resilience from underwriting partners, especially amid economic uncertainty, elevated inflation, and rising claims costs. 

This market-driven pressure is accelerating the need for capital injection from smaller and mid-sized insurers, who risk losing premium income and broker relationships if they cannot showcase robust capital positions.

Most composite insurers are comfortably above the N25 billion regulatory capital requirement. AIICO Insurance leads with a capital buffer of N40.77billion, followed by Cornerstone Insurance with surpluses of N36.65billion. 

AXA Mansard also exceeds the minimum capital with moderate surpluses. LASACO Assurance has successfully raised approximately N11.10billion in fresh capital through a private placement, a move that significantly strengthens its capital position ahead of the industry-wide recapitalisation deadline. 

With this new injection, LASACO is now closer to meeting the N2billion minimum capital requirement for composite insurers. Fortis Global Insurance has a negative capital and will require strategic recapitalisation measures or mergers to meet the N25billion minimum capital threshold. 

The General segment also shows relatively strong buffers for leading players. NEM Insurance tops the category with a significant surplus of N51.83billion above the N15bn requirement, followed by Linkage Assurance with N27.08billon. Coronation Insurance, however, shows a capital shortfall of N10.22 billion relative to its N25billion target. Guinea Insurance and International Energy Insurance reported deficits of N10.17billion and N22.75billion, respectively, highlighting urgent recapitalisation needs. 

Veritas Kapital holds a modest surplus of N0.79billion above the N15billion requirement. However, Regency Alliance, Universal  Insurance, SUNU Assurances, and Sovereign Trust each fall short, with deficits ranging from N0.94billion to N5.04billion. These companies may need rights issues, strategic equity partnerships, or mergers to achieve compliance.

However, the sector in 2025 was faced with a hike in insurance service expenses that led 15 listed insurance companies on the NGX  to declare N78.77  billion profit before tax in nine  months of 2025, a decline of 45 per cent from N143.5 billion declared in nine months of 2024.

Also, the 15 companies posted N68.84 billion profit after tax in nine months of 2025, about 45.9 per cent drop from N127.31billion in nine months of 2024.

Despite challenges posed by the macroeconomic environment, THISDAY can report that, the 15 insurance companies generated N605.46billion as insurance revenue in nine months of2025,   representing an increase of 34 per cent from N451.33billion reported in nine months of 2024.

Capital market analysts noted that the Insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum.

Speaking on the reform, CardinalStone said, “In our view, these reforms are expected to reshape the competitive landscape of the industry, with the recapitalisation directive likely to pose challenges for the relatively smaller operators, given the existing market fragmentation amidst other structural bottlenecks.

“Hence, we could see a wave of industry consolidation through mergers and acquisitions, as less-capitalised firms seek to meet the new thresholds within the stipulated time frame. Insurers would be required to comply with the new capital requirements within 12 months of the law’s commencement, as stipulated by the National Assembly. However, we expect further regulatory guidance on implementation timelines, qualifying capital, and transitional provisions.”

Speaking, the Chief Executive Officer, Highcap Securities Limited, Mr. David Adnori stated that these insurance companies should take pride in their achievements and resilience displayed amidst the rapidly changing macro environment in the period under review.

“Last year Nigeria recorded a prevailing economic landscape, market and inflationary trends influence customer spending leading to shifts in consumer demand. Despite challenges posed by the macroeconomic environment and supply constraints, these listed insurance companies delivered strong performance, maintaining a disciplined approach to strategic investments for the future hence upholding the strength of our balance sheet,” he said.

He added that the insurance sector over the years in Nigeria remained a hard sell in Nigeria despite significant changes and advancements.

“However, embedded insurance holds the potential to address these challenges by integrating insurance products with existing services and increasing awareness, accessibility, and trust in the insurance sector,” Adnori said.