Insurance Stocks Gain Momentum on Recapitalisation Prospects

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•NSE sectoral index rises 27.6% in 15 days Goddy Egene Insurance stocks have gained momentum at the stock market with the Nigerian Stock Exchange (NSE) Insurance Index recording the highest appreci…

Insurance stocks have gained momentum at the stock market with the Nigerian Stock Exchange Insurance Index recording the highest appreciation of 27.6 per cent so far this year, THISDAY’s investigation has revealed.

However, Justice Aneke had restrained NAICOM from taking any further steps in implementing its deadline date for insurance and reinsurance companies to recapitalise. The NSE Consumer Index has recorded a YTD growth of 5.6 per cent, the NSE Banking Index rose by 4.4 per cent. An investment analyst, Ms. Efeomo Olotu of George Etimi & Partners, had said that the introduction of the new minimum capital requirement was a welcome development to help improve the insurance sector the way the banking recapitalisation in 2005 helped shape the future and development of the Nigerian banking industry.

“Similarly, the sector’s insurance density is still one of the lowest when compared to its peers,” she said.

 

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