The NGX Insurance coverage Index, which tracks the efficiency of the insurance coverage sector, started 2025 with outstanding momentum, wrapping up the primary buying and selling week ending January 3 with a powerful week-to-date achieve of 26.9%.
This excellent efficiency marks the index’s greatest buying and selling week since 2013, with its worth rising from 667.88 factors to a noteworthy 847.59 factors, supported by a strong buying and selling quantity of 679 million shares.
In April 2024, the sector confronted challenges because of the implications of bank recapitalization within the monetary companies panorama, leading to a ten% decline in index factors from April to Might.
However, a wave of bullish sentiment swept by the market, enabling the index to shut above its opening worth each month from August to December.
With a robust year-to-date efficiency of 123% in 2024, the insurance coverage index has kicked off 2025 on a excessive observe, as seven insurance coverage shares every surpassed 33% good points in simply the primary week.
Market pattern in 2024
The NGX Insurance coverage Index demonstrated a powerful year-to-date efficiency of 123% in 2024, climbing from 321 factors in January to 718 factors by December.
- The primary quarter noticed regular good points, with January and March closing positively; nonetheless, February skilled a minor dip. Notably, the index soared to a peak of 405 factors in March.
- Uncertainty stemming from the Central Bank of Nigeria’s recapitalization coverage led to a downturn in April, negatively impacting the All-Share Index. From April to July, the index skilled stagnation, dropping 10% of its factors.
Within the latter half of the yr, constructive sentiment returned to the monetary companies sector, driving the insurance coverage index to shut within the inexperienced for 5 consecutive months.
- December marked a spotlight, with the index surging 47% month-to-date and decisively closing at 718 factors.
As 2025 started, the index maintained its upward trajectory, attaining a week-to-date efficiency of 26.9% within the first buying and selling week.
- In response to the NGX’s market report for the primary week of 2025, the spectacular rise was pushed by seven standout shares: Status Assurance Plc, Sovereign Belief Insurance coverage Plc, Coronation Insurance coverage Plc, Common Insurance coverage Plc, Guinea Insurance coverage Plc, Consolidated Hallmark Holdings Plc, and Cornerstone Insurance coverage Plc. Every of those shares achieved good points exceeding 33%.
Efficiency of the Insurance coverage sector in comparison with friends
In 2024, the insurance coverage index emerged as a major participant, demonstrating resilience and development all year long, culminating in a year-to-date efficiency of 123.15%.
Among the many 5 main sectors on the Nigerian Alternate, it attained the excellence of being the second-best performer, intently following the Oil and Gasoline sector, which achieved a noteworthy year-to-date efficiency of 160%.
In distinction, the Industrial items sector realized a extra modest achieve of 31.70%, whereas the Shopper items and Banking sectors recorded performances of 27.56% and 21.13%, respectively.
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