NIyi JACOBS
Insurance stocks are at the heart of a historic rally on the Nigerian Exchange as sweeping reforms fuel investor appetite and reposition the sector for growth.
The NGX All-Share Index gained 3.18% last week, closing at 145,754.91 points, while market capitalization climbed to N92.2 trillion—just shy of the N100 trillion milestone. Trading activity also surged to 7.7 billion shares, up from 4.8 billion in the previous week.
The standout performer was the NGX Insurance Index, which soared 41% on the back of the newly implemented Nigerian Insurance Industry Reform Act (NIIRA) 2024. All ten of the market’s top gainers came from the sector, led by Mutual Benefits Assurance with a 60.44% rise, alongside AIICO Insurance and Royal Exchange.
The NIIRA Act introduces the most sweeping changes to the industry in decades, tightening capital requirements, enforcing risk-based supervision, broadening compulsory insurance, and accelerating digital adoption. It also links insurance more directly with the real estate and infrastructure sectors, embedding coverage at every stage from construction to occupancy.
Government spokesperson Onanuga described the Act as “a new era of transparency and competitiveness that aligns with the Renewed Hope Agenda.”
Analysts told BusinessNG that the reforms could unlock fresh capital inflows, strengthen consumer confidence, and position Nigeria as a regional insurance hub. For investors, the measures open new premium streams, enforce stronger governance, and create property-backed investment opportunities—reasons why insurance stocks have become the market’s hottest trade.
