Five insurance stocks- Fortis Global Insurance, International Energy Insurance, Custodian Investment, Consolidated Hallmark Holdings and NEM Insurance are currently the best-performing insurance stocks on the NGX amid the ongoing recapitalization exercise. As of the close of trading on August 14, 2026, all five had recorded double-digit year-to-date gains, with Fortis Global Insurance leading the pack with a 1,215% YtD return. However, the broader insurance sector has remained weak. Of the 22 insurance stocks tracked, only eight were positive year-to-date as of August 14, while 13 were in negative territory, and one was unchanged. The eight advancers were Fortis Global (+1,215.0%), International Energy Insurance (+112.8%), Custodian Investment (+67.67%), Consolidated Hallmark (+55.53%), NEM Insurance (+24.63%), AIICO (+8.18%), Mutual Benefits (+2.26%) and Linkage Assurance (+1.12%). This translates to a YtD advance-to-decline ratio of 8:13, showing that the gains have been concentrated in a relatively small number of stocks rather than spread broadly across the sector. The breadth weakened further; in August alone, only three stocks were positive month-to-date, compared with 17 decliners and two unchanged stocks.
The deterioration is also reflected in the NGX Insurance Index, which was down 5.09% YtD as of August 14, 2026, compared with a 0.99% gain at the end of July and a 6.20% YtD gain in May. This makes insurance the weakest-performing major sectoral index on the NGX so far in 2026, despite the outsized gains recorded by a handful of individual stocks. The divergence raises a key question: are these stocks rallying on improving fundamentals and attractive valuations, or are investors primarily betting on recapitalization and market momentum?
Let us look at the top 5 performing stocks. NEM Insurance Plc — 24.63% YtD
NEM Insurance completes the top five with a 24.63% YtD gain, closing at N33.40. The rally appears backed by a solid earnings record. PAT increased from N4.43 billion in 2021 to N24.10 billion in 2025. Although profit eased from N29.08 billion in 2024, H1 2026 PAT of N18.09 billion already represents about 75% of the entire 2025 profit. Its balance sheet also provides support. NEM reported N94.57 billion in net assets as of June 2026, considered to be above the recapitalization requirement
However, the stock is not especially cheap.
Investors are paying about N11 for every N1 of trailing earnings, broadly in line with the sector average, while paying N1.77 for every N1 of net assets. Overall, NEM’s rally appears supported more by earnings growth, capital strength and investor confidence than recapitalisation alone.
Further upside will depend on sustaining its strong 2026 profit momentum. Consolidated Hallmark Holdings Plc — 55.53% YtD
Consolidated Hallmark Holdings has gained 55.53% YtD, with its share price at N6.75. The stock remains 25.7% below its 52-week high of N9.08, after giving back some of its earlier gains. Despite the rally, the stock still looks relatively cheap.
Investors are paying about N2.25 for every N1 profit made over the last 12 months, lower than the sector average ratio. H1 2026 profit stood at N25.28 billion. If the company delivers a similar performance in the second half, full-year profit could reach about N50.56 billion. At that level, even if the share price returns to its N9.08 high, the stock would still trade at a relatively low earnings valuation compared with the sector average. The major caution is the quality and sustainability of those earnings. H1’s performance was heavily supported by about N27 billion in investment income, which jumped more than 2,000% year-on-year. Further gains will increasingly depend on whether Consolidated Hallmark can deploy its stronger capital base to grow recurring insurance earnings and sustain profitability.
Custodian Investment Plc — 67.67% YtD
Custodian Investment is the third best-performing insurance stock in 2026, gaining 67.67% YtD to N72.10. It is also the most capitalized stock on the NGX, with a market capitalization of N424.1 billion. The share price has risen strongly, but earnings have also grown over the years. Earnings per share increased from N1.83 in 2021 to N11.19 in 2025, representing an average annual growth of about 57%. Investors currently pay about N5.94 for every N1 of profit, lower than the sector average suggesting the shares are still relatively inexpensive. H1 2026 EPS stood at N5.32.
If Custodian records a similar level of earnings in H2, full-year EPS could reach N10.64. So, even if the share price returns to its N89.95 52-week high, investors would still be paying about N8.50 for every N1 of projected earnings, below the sector average. However, H1 growth came largely from interest income, which surged 235.5% to N70.76 billion, while insurance service revenue fell 14.5% to N76.39 billion. With its insurance subsidiaries already meeting NAICOM’s recapitalization requirements, further upside appears supported by fundamentals, although sustaining the rally will depend on continued earnings growth and a recovery in core insurance revenue.
Overall, the market appears to be pricing in a combination of earnings growth, recapitalization strength and relative undervaluation. International Energy Insurance Plc — 112.8% YtD
International Energy Insurance is the second-best performer, gaining 112.8% YtD to N5.32, although its market capitalisation remains relatively small at about N6.8 billion. IEI is profitable, but its valuation shows a clear contrast: it is cheap on assets but expensive on earnings.
Investors are paying about N35 for every N1 of profit made over the last 12 months but paying only 19 kobo for every N1 of the company’s net assets. Its June 2026 net assets of N35.30 billion also sit well above the N15 billion capital requirement for non-life insurers. This suggests that the rally is being supported more by the company’s stronger post-recapitalisation balance sheet and turnaround expectations than by current earnings. Earnings would, however, need to improve significantly to make the stock cheaper. H1 2026 EPS was only N0.06; annualizing, gives just N0.12 per share, which would leave the stock trading at over 44 times earnings.
IEI therefore needs a stronger earnings recovery for its valuation to catch up with the recapitalization-driven rally. Fortis Global Insurance Plc — 1,215% YtD
Fortis Global Insurance is by far the best-performing insurance stock on the NGX in 2026, with its share price rising 1,215% year-to-date to N2.63 as of August 14, 2026. Despite the extraordinary gain, Fortis is currently 26.3% below its 52-week high of 3.57, suggesting that some of the momentum that drove the stock to its peak has already moderated. The rally coincided with a major transformation of the insurer’s capital structure.
Fortis’ shareholders’ funds stood at N36.441 billion as of June 2026, while borrowings dropped to zero from N6.51 billion as of June 2025. However, the operating numbers suggest that the surge in Fortis’ share price rally is not yet being driven by financial performance. Profitability is an even bigger consideration. Fortis recorded losses of N1.725 billion, N830 million and N1.816 billion between 2021 and 2023, returned to profit with N4.990 billion in 2024, before posting another N1.892 billion loss in 2025. H1 2026 also produced a N992 million loss. So, further upside will depend on Fortis turning its larger capital base into sustainable insurance profits.
