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 far ahead of the broader market’s 37% YtD gain. Companies riding this wave include AXA Mansard Insurance and Cornerstone Insurance Plc.AXA Mansard’s market value has risen by 101% year to far, to N148.5 billion, making it the NGX’s third-most valuable insurance stock.
Cornerstone has grown 78% year to date to a market capitalization of N116 billion, placing fourth in the category.
These improvements have generated strong real returns for investors. Beyond the price increase, the important question is which of these insurers makes the best argument for investors, and are the rallies supported by fundamentals?
Insurance results:
The primary measure of operations
Insurance service results provide the clearest view of operational health, excluding investment gains or fair value remeasurements.
AXA Mansard generated N9.2 billion, representing a flat 0.04% YoY growth rate. This is already 77% of FY2024 levels, although it failed expectations by 12%.
Cornerstone reported N8.1 billion, a smaller figure in absolute terms but a staggering 282% YoY increase. It has now achieved 194% of its 2024 FY target, outperforming its prediction by a staggering 290%.
Insight: AXA Mansard is steady but slowing in comparison to forecasts, whilst Cornerstone is rising faster than even management anticipated
Revenue vs. expenses: The Push and Pull
Mansard’s Challenge: Insurance income increased 24% to N81.2 billion, but expenses increased nearly 50% to N55.3 billion, with high non-life claims (N36 billion) weighing on margins. In effect, Mansard keeps only 18 kobo every N1 revenue after claims and expenses.
Cornerstone’s Advantage: Insurance revenue increased 44% to N24.5 billion, while expenses increased 41% to N13.5 billion. Cornerstone maintains approximately 30 kobo per N1 income.
Cornerstone is running leaner and generating more premiums into profit, whereas Mansard’s size results in higher claims drag.
Investment outcomes:
FX swings altered the game.
Both insurers relied on bond investments and securities, but FX volatility altered their outcomes:
Cornerstone:
Investment income increased 82% year on year to N3.9 billion, while overall investment results fell 87% to N3.7 billion, pressured by an FX loss of N339 million compared to a massive N29.2 billion gain in H1 2024.
Mansard: Investment income increased 91% year on year to N6.0 billion, but total results decreased 84% to N7.0 billion, owing to a N160 million FX loss, compared to a N24.0 billion gain the previous year.
Profitability Trends
Mansard:
PAT fell 73% to N6.8 billion (H1 2025), from N25.1 billion previous year. Nonetheless, its 5-year CAGR of 39% demonstrates long-term steadiness, with 117% YoY increase in 2024 FY.
Cornerstone:
PAT fell 78% to N5.990 billion, from N26.7 billion last year. Nonetheless, its 5-year CAGR is higher at 64%, with 87% YoY growth in the fiscal year 2024, aided by foreign exchange tailwinds.
Insight: Both had severe H1 decreases due to FX. 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
