Insurance stocks lead NGX rally with N6.2bn in weekly trade

Insurance sector closed the week on a high note, with investors trading 2.1 billion shares valued at N6.2 billion on the Nigerian Exchange Ltd. (NGX).This positive performance was driven by 17 insurance companies.

AIICO Insurance led the market, trading 236.96 million shares valued at N995.88 million across 4,691 transactions.

Mutual Benefits Assurance followed, with 204.7 million shares worth N879.2 million.

While Universal Insurance sold 434.2 million shares valued at N559.1 million across 2,258 deals, AXA Mansard Insurance traded 33.2 million shares worth N554.2 million across 1,378 transactions.

Also, Lasaco Assurance transacted 123.2 million shares valued at N457.4 million in 1,197 deals.

Linkage Assurance sold 156.5 million shares, worth 390.8 million across 1,278 transactions.

Veritas Kapital Assurance transacted 185,7 million shares valued at N389.5 million in 1,943 deals.

Sovereign Trust Insurance traded 124.1 million shares worth N355.9 million across 1,348 transactions and Prestige Assurance sold 153.5 million shares valued at N302.8 million in 1,106 deals.

WAPIC Insurance transacted 76.1 million shares worth N259.6 million across 1,199 transactions.

Nem Insurance traded 8.1 million shares valued at N220.1 million in 866 deals.

Regency Alliance Insurance sold 128.9 million shares worth N183.93 million across 1,009 transactions and Consolidated Hallmark Insurance traded 39.7 million shares valued at N172.6 million in 931 deals.

Cornerstone Insurance sold 19.6 milllion shares worth 144.1 million across 717 transactions.

Guinea Insurance transacted 83.1 million shares valued at N140.6 million in 1,231 deals.

Sunu Assurances traded 19.4 million shares worth 123.46 million in 1,290 transactions.

International Energy Insurance sold 10.7 million shares valued at N36.7 million across 348 transactions.

Commenting, Mr David Adonri, Vice President of Highcap Securities, said the last time insurance stocks enjoyed a major rally was before the global financial meltdown, after which they declined and remained weak for several years.

He explained that the trend only changed recently following the signing of the Nigerian Insurance Industry Reform Act (NIIRA 2025) by President Bola Tinubu.

He, however, noted that the momentum slowed again when NAICOM announced a fresh recapitalisation exercise, before picking up once more.

According to him, investors have interpreted NIIRA 2025 as a ‘game changer’ that will create an enabling environment for the insurance sector to thrive, backed by stronger policy support.

Adonri urged insurance operators to seize the opportunity to address the widespread perception that the industry lacks integrity and honesty.

He emphasised the need for operators to strengthen corporate governance, maximise shareholders’ wealth, and pursue strategies that would attract and retain investors, particularly in preparation for public offerings expected as part of the recapitalisation process.

He further described insurance as an essential component of the financial services industry, serving as a mechanism for savings mobilisation that ultimately translates into higher investment and broader economic growth. (NAN) 

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