NGX Insurance Index Declines 8.65% Amid Recapitalisation

As of August 21, 2026, the Nigerian Exchange Limited (NGX) Insurance Index has experienced a Year-to-Date (YtD) decline of 8.65%, positioning it as the worst-performing sector on the exchange. This decline contrasts sharply with other indices, such as NGX Banking and Oil & Gas, which have seen gains of 63.18% and 85.76%, respectively.

The insurance index's poor performance marks a significant downturn from its previous successes, where it recorded a return of 107.74% in 2024 and approximately 79% in 2025. Financial results from several insurance companies reflect this trend; for instance, AXA Mansard Insurance Plc reported a revenue increase of 22% to N160.56 billion for the year ending December 31, 2025, but its profit before tax plummeted by 81% to N6.12 billion.

Share prices for companies such as AXA Mansard, Sunu Assurances, Cornerstone Insurance, and Coronation Insurance have also significantly decreased. Market operators attribute the sector's underperformance to investor concerns regarding share dilution, weak earnings growth, and profit-taking following previous rallies.