Insurance stocks have quietly become one of the hottest corners of the Nigerian market in 2025.
The NGX Insurance Index, which tracks 15 of the sector’s most capitalized and liquid players, has surged by 82% YtD, second only to the Consumer Goods Index, and well ahead of the broader market’s 37% YtD gain.
Among the companies riding this wave are AXA Mansard Insurance and Cornerstone Insurance Plc.
- AXA Mansard has gained 101% YtD, lifting its market capitalization to N148.5 billion, making it the third most valuable insurance stock on the NGX.
- Cornerstone has climbed 78% YtD to a N116 billion market cap, ranking fourth in the sector.
These gains have delivered solid real returns for investors. But beyond the price rally, the big question is: Which of these insurers offers the stronger case for investors and are the rallies justified by fundamentals?
Insurance results: The core measure of operations
Insurance service result is the clearest lens into operational health, stripping away investment gains or fair value remeasurements.
- AXA Mansard delivered N9.2 billion, flat at 0.04% YoY growth. This is already 77% of FY2024 levels, but it missed forecasts by 12%.
- Cornerstone reported N8.1 billion, which is smaller in absolute terms but an explosive 282% YoY jump. It has already achieved 194% of 2024 FY, beating its forecast by a massive 290%.
Insight: AXA Mansard is steady but slowing relative to expectations, while Cornerstone is growing faster than even management projected.
Revenue vs. expenses: The push and pull
- Mansard’s challenge: Insurance revenue grew 24% to N81.2 billion but expenses surged almost 50% to N55.3 billion, with heavy non-life claims (N36 billion) weighing on margins. In effect, Mansard retains only 18 kobo per N1 revenue after claims/expenses.
- Cornerstone’s advantage: Insurance revenue jumped 44% to N24.5 billion, while expenses rose 41% to N13.5 billion. Cornerstone retains about 30 kobo per N1 revenue.
Insight: Cornerstone is running leaner and converting more premiums into profit, while Mansard’s size comes with higher claims drag.
Investment results: FX swings changed the game
Both insurers rely on bond investments and securities, but FX volatility flipped their results:
- Cornerstone: Investment income rose 82% YoY to N3.9 billion, but total investment results collapsed 87% to N3.7 billion, dragged by an FX loss of N339m versus a huge N29.2 billion gain in H1 2024.
- Mansard: Investment income grew even faster, 91% YoY to N6.0 billion, but total results fell 84% to N7.0 billion, hit by an N160m FX loss, compared to a N24.0 billion gain last year.
Profitability trends
- Mansard: PAT declined 73% to N6.8 billion (H1 2025), down from N25.1 billion last year. Still, its 5-year CAGR of 39% shows long-term consistency, with 117% YoY growth in 2024 FY.
- Cornerstone: PAT dropped 78% to N5.990 billion, from N26.7 billion last year. Yet, its 5-year CAGR is stronger at 64%, with 87% YoY growth in 2024 FY, also lifted by FX tailwinds.
Insight: Both suffered steep H1 declines due to FX reversal, but Cornerstone has shown faster compounding growth over the long term, while Mansard has delivered steadier profitability.
Valuation
Both Cornerstone and Mansard trade above the sector average based on their valuation multiples.
- Cornerstone’s P/E ratio of 32x makes it look more expensive than Mansard at 19x, though Cornerstone is slightly cheaper on a price-to-book basis.
- Still, both stocks are priced above their book value, signaling that investors are paying a premium relative to their fundamentals.
In terms of profitability, Mansard stands out with a return on equity (ROE) of 12%, compared to Cornerstone’s 8%.
This suggests Mansard is more efficient at converting shareholder capital into profits. However, both are still trailing the sector average ROE, which tempers the strength of this positive.
Share Price and dividend yield performance
Both insurers have delivered share price performance that beats inflation, which strengthens their appeal to investors.
Additionally, they both pay dividends, a key attraction for income-focused investors. Cornerstone leads on this front with a dividend yield of 4.23%, comfortably above Mansard’s 2.73%.
Verdict: Buy, Hold or Sell?
AXA Mansard (Buy): Despite margin pressures and FX reversals, Mansard’s scale advantage, superior ROE, and a relatively lower P/E multiple (though still above sector average) justify a Buy rating. The stock appears to offer investors a more profitable and stable play within the sector. The trade-off is its modest dividend yield, but its fundamentals and growth trajectory make it attractive for accumulation at current levels.
Cornerstone (Hold): Cornerstone has surprised positively with strong operational momentum, leaner cost structure, and a higher dividend yield. However, at a steep 32x P/E, well above the sector norm, much of the optimism is already priced in.
This makes it less appealing for fresh entry despite its yield advantage. A Hold is more prudent for income-focused investors who already own the stock.
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