Insurers Turn to Stock Market Ahead of Recapitalization Deadline

Insurers in Nigeria are flocking to the stock market as the July 31, 2026, recapitalization deadline approaches, mandated by the Nigerian Insurance Commission (NAICOM). Eber Nwoji reports that this trend is driven by a palpable fear of market volatility affecting the insurance sector's market value.

The NGX insurance index demonstrated a significant 65.64% growth in 2025, contributing 0.97% to the total market capitalization. The total gross premium for the first half of 2025 reached ₦1.98 trillion, a 54.2% year-on-year increase.

Analysts are optimistic about the sector's performance, noting that it recorded the highest growth among financial services in the last quarter of 2025, with a 21.37% surge. However, as the recapitalization deadline nears, the sector has experienced volatility, with the index dropping 1.4% recently.

Companies such as Guinea Insurance and Lasaco Assurance are seeking substantial capital through rights issues to meet regulatory requirements.