- NEM Insurance, Sovereign Trust Insurance Lead in possibilities
- Investment Opportunities in Insurance Stocks
The recent reforms in the Nigerian Insurance Sector, particularly the ongoing recapitalistion exercise has transformed the performance of insurance firms listed on the Nigerian Exchange (NGX) significantly. Thanks to the new government policy, prices of insurances stocks are no longer in kobo; they have actually moved to above N1.
In a matter of days, the third quarter of 2025 should be over, Q3 2025 results should start hitting the market from the second week of October.
In the previous edition, we did Q3 2025 earnings forecast for manufacturing firms. That is, what we should expect in their Q3 results for the period ended 30, September 2025. You can read extensively about this on Stockswatch website, stocksng.com. This week, we will dwell more on Q3 2025 earnings forecast for insurance firms.
Investment should be done against expectation and not on realities. Our projection of Q3 2025 earnings for insurance firms is based on their PEG ratios. PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings per share (EPS), and the company’s expected growth.
Note that the EPS in red is the projected earnings.
NEM INSURANCE
NEM Insurance over the last 5 years has reported Q3 earnings per share (EPS) ranging between N2.70 and 22 kobo with earnings growth rate of 87.17%.
The Company in Q2 2025 achieved EPS of N3.09, up by 45.75% from the Q2 2024 EPS of N2.12. This also represents 20.23% growth from Q1 2025 EPS of N2.57.
At the current share price of N27.5 and Q3 2024 earnings per share of N2.7, the P.E ratio of NEM Insurance is calculated as 10.19x.
The PEG ratio against the expected Q3 2025 earnings is 0.12.
Q3 2025 earnings per share of N4.81 is projected for NEM Insurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| NEM INSURANCE | 2025 | 2.57 | 3.09 | 4.81 |
| 2024 | 2.10 | 2.12 | 2.7 | |
| 2023 | 3.36 | 0.70 | 1.04 | |
| 2022 | 0.31 | 0.51 | 0.79 | |
| 2021 | 0.11 | 0.20 | 0.41 | |
| 2020 | 0.11 | 0.16 | 0.22 |
AXA MANSARD INSURANCE
Q3 earnings per share (EPS) of AXA Mansard Insurance over the last 5 years ranged between N3.27 and 17 kobo, growth rate of 59.13%.
Q1 2025 earnings per share of AXA Mansard declined to 69 kobo from N1.40. Likewise, Q2 2025 EPS of the Company dropped to 76 kobo from N2.65.
At the current share price of N16 and Q3 2024 earnings per share of N3.27, P.E ratio of AXA Mansard Insurance is calculated as 4.89x.
The PEG ratio against the expected Q3 2025 earnings is 0.08.
Q3 2025 earnings per share of N1.21 is projected for AXA Mansard.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| AXA MANSARD | 2025 | 0.69 | 0.76 | 1.21 |
| 2024 | 1.40 | 2.65 | 3.27 | |
| 2023 | 0.20 | 1.43 | 1.36 | |
| 2022 | 0.04 | 0.17 | 0.17 | |
| 2021 | 0.07 | 0.06 | 0.40 | |
| 2020 | 0.05 | 0.10 | 0.51 |
AIICO INSURANCE
Q3 earnings per share of AIICO Insurance over the last 4 years ranged between 34 kobo and 15 kobo with earnings growth rate of 31.32%.
The Company reported EPS of 12 kobo in Q1 2025 and 30 kobo Q2 2025 respectively.
At the current share price of N3.8 and Q3 2024 earnings per share of 34 kobo, P.E ratio of AIICO is calculated as 11.18x.
The PEG ratio against the expected Q3 2025 earnings is 0.36.
Q3 2025 earnings per share of 39 kobo is projected for AIICO Insurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| AIICO | 2025 | 0.12 | 0.30 | 0.39 |
| 2024 | 0.25 | 0.35 | 0.34 | |
| 2023 | 0.04 | 0.18 | 0.16 | |
| 2022 | 0.13 | 0.15 | 0.13 | |
| 2021 | 0.04 | 0.16 | 0.15 | |
| 2020 | 0.05 | 0.14 | 0.45 |
CORNERSTONE INSURANCE
Cornerstone Insurance over the last 5 years has reported Q3 earnings per share (EPS) ranging between N1.34 and 6 kobo with earnings growth rate of 91.33%.
Q1 2025 earnings per share of Cornerstone Insurance declined to 9 kobo from Q1 2024 EPS of 93 kobo. Likewise, Q2 2025 EPS of the Company dropped to 33 kobo from Q2 2024 EPS of N1.46.
At the current share price of N6.33 and Q3 2024 earnings per share of N1.34, P.E ratio of Cornerstone Insurance is calculated as 4.72x.
The PEG ratio against the expected Q3 2025 earnings is 0.05;
Q3 2025 earnings per share of 63 kobo is projected for Cornerstone Insurance.
| COMPANY | YEAR | Q1 (EPS) | Q2 EPS (N) | Q3 EPS (N) |
| CORNERSTONE | 2025 | 0.09 | 0.33 | 0.63 |
| 2024 | 0.93 | 1.46 | 1.34 | |
| 2023 | 0.03 | 0.54 | 0.65 | |
| 2022 | 0.004 | 0.02 | 0.03 | |
| 2021 | 0.04 | 0.04 | 0.10 | |
| 2020 | 0.03 | 0.06 | 0.06 |
PRESTIGE ASSURANCE
Prestige Assurance over the last 5 years have reported EPS ranging between 18 kobo and 12 kobo with earnings growth rate of 10.67%.
Q1 2025 earnings per share of Prestige Assurance dropped to 4 kobo from Q1 2024 EPS of 15 kobo. Likewise, Q2 2025 EPS of the Company declined to 4 kobo from Q2 2024 EPS of N21 kobo.
At the current share price of N1.75 and Q3 2024 earnings per share of 18 kobo, P.E ratio of Prestige Assurance is calculated as 9.72x.
The PEG ratio against the expected Q3 2025 earnings is 0.91.
Q3 2025 earnings per share of 4 kobo is projected for Prestige Assurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| Prestige Assurance | 2025 | 0.04 | 0.04 | 0.04 |
| 2024 | 0.15 | 0.21 | 0.18 | |
| 2023 | 0.02 | 0.04 | 0.03 | |
| 2022 | 0.05 | 0.06 | 0.07 | |
| 2021 | 0.05 | 0.06 | 0.07 | |
| 2020 | 0.11 | 0.10 | 0.12 |
SOVEREIGN TRUST INSURANCE
Sovereign Trust Insurance over the last 5 years has reported Q3 earnings per share (EPS) ranging between 11 kobo and 5 kobo with earnings growth rate of 21.79%.
The Company grew its EPS to 6 kobo in Q1 2025 from Q1 2024 EPS of 4 kobo. Sovereign Trust Insurance also grew EPS to 10 kobo in Q2 2025 from Q2 2024 EPS of 7 kobo.
At the current share price of N3.04 and Q3 2024 earnings per share of 11 kobo, the P.E ratio of Sovereign Trust Insurance is calculated as 27.64x.
The PEG ratio against the expected Q3 2025 earnings is 1.27.
Q3 2025 earnings per share of 13 kobo is projected for Sovereign Trust Insurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| SOVEREIGN TRUST | 2025 | 0.06 | 0.10 | 0.13 |
| 2024 | 0.04 | 0.07 | 0.11 | |
| 2023 | 0.04 | 0.04 | 0.05 | |
| 2022 | 0.04 | 0.05 | 0.07 | |
| 2021 | 0.03 | 0.05 | 0.06 | |
| 2020 | 0.02 | 0.04 | 0.05 |
VERITAS KAPITAL ASSURANCE
Q3 earnings per share of Veritas Kapital Assurance over the last 5 years ranged between 41 kobo and 3 kobo with earnings growth rate of 92.27%.
The Company reported EPS of 23 kobo in Q1 2025 and 52 kobo Q2 2025 respectively.
At the current share price of N2.04 and Q3 2024 earnings per share of 41 kobo, P.E ratio of Veritas Kapital Assurance is calculated as 4.98x.
The PEG ratio against the expected Q3 2025 earnings is 0.05.
Q3 2025 earnings per share of 78 kobo is projected for Veritas Kapital Assurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| VERITAS KAPITAL | 2025 | 0.23 | 0.52 | 0.78 |
| 2024 | 0.82 | 0.75 | 0.41 | |
| 2023 | 0.03 | 0.16 | 0.19 | |
| 2022 | 0.02 | -0.02 | 0.09 | |
| 2021 | 0.05 | 0.06 | 0.04 | |
| 2020 | 0.01 | 0.01 | 0.03 |
REGENCY ASSURANCE
Regency Assurance over the last 5 years have reported EPS ranging between 12 kobo and 9 kobo with earnings growth rate of 10.67%.
Q1 2025 earnings per share of Regency Assurance dropped to 6 kobo from Q1 2024 EPS of 8 kobo. Q2 2025 EPS of the Company declined further to 4 kobo from Q2 2024 EPS of N11 kobo.
At the current share price of N1.62 and Q3 2024 earnings per share of 12 kobo, P.E ratio of Regency Assurance is calculated as 13.50x.
The PEG ratio against the expected Q3 2025 earnings is 1.81.
Q3 2025 earnings per share of 4 kobo is projected for Regency Assurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| Regency Assurance | 2025 | 0.06 | 0.04 | 0.04 |
| 2024 | 0.08 | 0.11 | 0.12 | |
| 2023 | 0.12 | 0.08 | 0.11 | |
| 2022 | 0.10 | 0.11 | 0.12 | |
| 2021 | 0.06 | 0.08 | 0.09 | |
| 2020 | 0.03 | 0.08 | 0.09 |
SUNU ASSURANCE
Q3 earnings per share of Sunu Assurance Plc over the last 5 years ranged between 80 kobo and 1 kobo with earnings growth rate of 199%.
Q1 2025 earnings per share of Sunu Assurance dropped to 13 kobo from Q1 2024 EPS of 42 kobo. Q2 2025 EPS of the Company also declined to 20 kobo from Q2 2024 EPS of N59 kobo.
At the current share price of N5.79 and Q3 2024 earnings per share of 80 kobo, P.E ratio of Sunu Assurance is calculated as 7.24x.
The PEG ratio against the expected Q3 2025 earnings is 0.04.
Q3 2025 earnings per share of 39 kobo is projected for Sunu Assurance.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| Sunu Assurance | 2025 | 0.13 | 0.20 | 0.39 |
| 2024 | 0.42 | 0.59 | 0.80 | |
| 2023 | 0.05 | 0.37 | 0.33 | |
| 2022 | 0.01 | 0.60 | 0.06 | |
| 2021 | -0.06 | -0.01 | 0.02 | |
| 2020 | -0.06 | -0.04 | 0.01 |
LASACO ASSURANCE
Q3 earnings per share (EPS) of LASACO Assurance over the last 5 years ranged between 79 kobo and 12 kobo with earnings growth rate of 60.18%.
Q1 2025 EPS of LASACO declined to 12 kobo from the EPS of 56 kobo reported in Q1 2024.
In Q2 2025, LASACO declared Loss after tax of N731.45 million, driven by huge operating expenses. This translated to NEGATIVE EPS of 40 kobo as against Q2 2024 EPS of 29 kobo.
The Company needs to make significant profit in Q3 2025 to achieve a positive EPS.
| COMPANY | YEAR | Q1 EPS (N) | Q2 EPS (N) | Q3 EPS (N) |
| LASACO | 2025 | 0.12 | -0.40 | |
| 2024 | 0.56 | 0.29 | 0.79 | |
| 2023 | 0.33 | 0.25 | 0.45 | |
| 2022 | 0.16 | 0.05 | 0.15 | |
| 2021 | 0.10 | 0.16 | 0.25 | |
| 2020 | 0.15 | 0.09 | 0.12 |
