The Nigerian insurance sector powered through 2025 with a remarkable 65.64% return, surpassing the broader All-Share Index, which gained 51.19%. The NGX Insurance Index rose from 719.9 to 1,189.3 points, decisively breaking the 1,000-point barrier and signaling a strong recovery for the sector. Only the Consumer Goods sector outperformed insurance, delivering a 129.57% return during the same period.
Despite falling short of the sector’s extraordinary 123% growth in 2024, 2025 was a solid year for insurance stocks. The sector’s performance peaked in August, which recorded a 44.30% gain following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 by President Tinubu. Investors responded positively to reforms promising stronger consumer protection, improved capital adequacy, and overall sector stability.
The second half of the year emerged as the strongest, with H2 2025 posting a 57.42% gain. The third quarter stood out with over 57% growth, largely driven by strong rallies in individual insurance stocks. Analysts noted that these gains reflected growing investor confidence in the sector, highlighting insurance equities as a lucrative option amid broader market fluctuations.
Among the top performers, Guinea Insurance secured the tenth spot, delivering a 64.20% return to shareholders. The stock opened the year at N0.81 and closed at N1.33, despite early losses in the first four months. Strong momentum in May and June, followed by a significant surge in August, lifted Guinea Insurance above the N1 mark. By year-end, the stock’s rebound helped solidify its position among the sector’s top gainers.
Overall, the performance of Nigeria’s insurance stocks in 2025 demonstrates the sector’s resilience and growing attractiveness to investors. As companies adjust to regulatory reforms and capitalize on market opportunities, equities in insurance remain a key segment to watch in 2026. The combination of solid returns, regulatory improvements, and investor confidence signals a promising outlook for the industry.
source: nairametrics