Insurance Stocks on Fire: AXA Mansard vs. Cornerstone — Which Should Nigerian Investors Bet On?

Insurance Stocks on Fire: AXA Mansard vs. Cornerstone — Which Should Nigerian Investors Bet On?

For years, insurance stocks were the “quiet cousins” of the NGX — steady but overlooked.
But in 2025? They’ve turned into one of the hottest tickets in town.

The NGX Insurance Index has already surged 82% YtD, crushing the broader market (+37%). Investors are cashing in, but the real question is: which players actually deserve your money?

Two names keep stealing the spotlight: AXA Mansard Insurance and Cornerstone Insurance Plc.
Here’s the battle breakdown 

1️⃣ The Momentum Story

AXA Mansard: +101% YtD → Market cap now ₦148.5bn.

Cornerstone: +78% YtD → Market cap ₦116bn.

Translation: Both stocks have delivered serious real returns. But momentum alone isn’t enough — let’s dig deeper.

2️⃣ Operational Firepower

When you strip away the FX noise and investment revaluations, what really counts is insurance service results.

AXA Mansard: ₦9.2bn (flat YoY, missed forecasts by 12%).

Cornerstone: ₦8.1bn (+282% YoY, smashing forecasts by 290%).

Insight: Mansard is steady but slowing. Cornerstone is scaling like a startup on steroids.

3️⃣ Revenue vs. Expenses (Who Keeps More Per ₦1?)

Mansard: ₦81.2bn revenue, but expenses ate up ₦55.3bn. Retains 18 kobo per ₦1 revenue.

Cornerstone: ₦24.5bn revenue, expenses ₦13.5bn. Retains 30 kobo per ₦1 revenue.

Takeaway: Cornerstone is leaner and more efficient. Mansard’s size comes with heavy claims baggage.

4️⃣ The FX Wildcard

FX volatility flipped last year’s paper gains into this year’s headaches.

Mansard: ₦6bn investment income (+91% YoY) but overall results down 84%.

Cornerstone: ₦3.9bn investment income (+82% YoY) but total results fell 87%.

Both suffered steep reversals. The FX sugar high of 2024 is gone.

5️⃣ Profitability & Growth

Mansard PAT: ₦6.8bn (-73%). Long-term CAGR: 39%.

Cornerstone PAT: ₦5.9bn (-78%). Long-term CAGR: 64%.

Insight: Mansard = steadier compounder. Cornerstone = faster grower, but more volatile.

6️⃣ Valuation Reality Check

Cornerstone: P/E 32x (pricey). Dividend yield 4.23%.

Mansard: P/E 19x (cheaper). Dividend yield 2.73%.

Both trade at premiums above book value. But Mansard edges Cornerstone on ROE (12% vs. 8%) — meaning it converts capital into profit more effectively.

 Verdict — Buy, Hold, or Sell?

AXA Mansard → BUY. Stronger ROE, cheaper valuation, and scale advantage make it a more stable accumulation play. Dividend yield is modest, but fundamentals support growth.

Cornerstone → HOLD. Impressive operational momentum and yield, but valuations are stretched. Great if you already own it, not ideal for fresh entry.

Final Word

Insurance stocks in Nigeria have officially graduated from boring to booming.
But just like in real life insurance, the key is not chasing excitement — it’s picking the policy (or stock) that actually delivers when storms hit.

For 2025, Mansard looks like the sturdier umbrella. Cornerstone? A flashier play, but best to hold tight if you’re already in.

Over to you:
Would you rather bet on stability (Mansard) or momentum (Cornerstone) in 2025?