Insurance Stocks Surge to 20-Year High on Nigeria’s New Reform Law

Nigerian insurance stocks posted their strongest weekly performance in nearly two decades following the passage of a landmark reform law aimed at boosting the sector’s capital base and making coverage for property and other assets mandatory.

The insurance index on the Lagos-based Nigerian Exchange jumped 41% this week, its biggest gain since the early 2000s, according to Bloomberg data.

The Nigeria Insurance Reform Act, recently signed into law, compels companies to raise fresh capital to strengthen their balance sheets while introducing compulsory insurance for a broader range of assets.

Market analysts say the legislation will spark a wave of investment and deepen penetration in an industry long plagued by low uptake.

“Insurance penetration will rise, and strategic as well as foreign investors will be coming to the sector,” said Victory George, an equity analyst at Meristem Securities Ltd.

Investors are betting that the reforms will drive consolidation, enhance consumer confidence, and position the industry for sustained growth in Africa’s largest economy.