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.
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 service result is the clearest lens into operational health, stripping away investment gains or fair value remeasurements.
Insight: AXA Mansard is steady but slowing relative to expectations, while Cornerstone is growing faster than even management projected.
Insight: Cornerstone is running leaner and converting more premiums into profit, while Mansard’s size comes with higher claims drag.
Both insurers rely on bond investments and securities, but FX volatility flipped their results:
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.
Both Cornerstone and Mansard trade above the sector average based on their valuation multiples.
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%.
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.
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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