Going into the second half of 2026, insurance stocks listed on the Nigerian Exchange are showing very different signals. Some stocks have maintained strong price momentum, while others appear cheap based on their earnings and book values.
There are also stocks whose prices have fallen sharply despite reporting positive earnings, creating possible contrarian opportunities. This comes as the broader Nigerian equities market recovers from a sharp sell-off.
On Monday, June 22, 2026, the market gained N1.52 trillion in market capitalization, supported by strong demand for tier-one banking stocks. FirstHoldCo and GTCO rose by the maximum daily limit of 10%.
The rebound ended a six-session losing streak that had wiped more than N5 trillion from investors’ wealth. The NGX All-Share Index rose by 0.97% to close at 238,219.19 points, while market capitalisation increased to N152.79 trillion.
The insurance sector has, however, recorded an uneven performance. The NGX Insurance Index ended the first quarter with a year-to-date gain of 3.54%. By the end of April, it had fallen to a 0.24% loss before recovering to a 6.20% gain at the end of May. As of June 22, the index had reversed a year-to-date loss of 3.16%.
The decline in the sector index hides the wide differences in the performance and fundamentals of individual insurance companies. Of the 22 listed insurance firms reviewed, seven recorded year-to-date gains; two were unchanged, while 13 were trading below their opening prices for the year.
These differences provide the basis for identifying the momentum, value and contrarian insurance stocks going into H2 2026.
What is momentum, value and contrarian stock?
Momentum stocks are shares that are already rising and continue to attract buyers who expect the upward trend to continue.
Value stocks are shares trading at relatively low prices compared with measures such as earnings, sales or book value.
Contrarian stocks are shares that have fallen or are out of favour, even though their underlying businesses may still have recovery potential. Investors buy them because they believe the market may have overreacted.
Fast-rising Stocks
Custodian Investment is our strongest momentum pick going into H2 2026. The stock gained 88.95% year-to-date to N81.25, trading at 90.33% of its 52-week high. The rally is earnings-backed; after-tax profit has grown at a 58% CAGR from 2021 to 2025, reaching N65.84 billion, with Q1 2026 annualizing at N71.4 billion. At 6.75 times trailing earnings and return on equity of 40.50%, the valuation remains reasonable despite the rally. The only near-term caution is its RSI of 19.88; the stock has been sold heavily in recent weeks, and the path higher in H2 may not be smooth.
Consolidated Hallmark Holdings appears to be the most balanced of the three momentum picks. Its RSI of 45.75 indicates softer buying pressure, and at N6.70, it trades at 74% of its 52-week high of N9.08. Its 54.4% year-to-date gain holds, with 7.2% coming in June alone. After-tax profit peaked at N22.63 billion in 2024 before normalizing to N8.44 billion in 2025, with Q1 2026 annualizing at roughly N9.4 billion. The rally has earnings support, but the best of the earnings growth may already be priced in. Capital efficiency as reflected in its ROE of 21.90% helps keep it in this category.
Undervalued Stocks
Custodian Investment also stands out as a value stock despite its strong share-price rally. At 6.75 times trailing earnings and a return on equity of 40.50%, it remains reasonably priced for what the business is delivering. Its price-to-book ratio of 1.75 times carries a premium, but that premium is earned. The main risk in H2 is profit-taking; its RSI of 19.88 is one of the most oversold readings in the sector, suggesting recent selling has been disproportionate. For patient investors, that may represent an opportunity and for existing holders, the fundamentals remain intact.
Mutual Benefits Assurance is one of the clearest value stocks in the sector. It trades 3.72 times earnings, 1.02 times book value and 0.86 times sales. These are low valuations for a business that grew after-tax profit from a N5.43 billion loss in 2021 to N20.88 billion in 2025, a four-year turnaround that is still running. Q1 2026 annualizes at N16.09 billion, suggesting mild normalization rather than reversal. The stock gained 23.9% year-to-date but lost 13% in June, with RSI at 34.34. For value investors, that June pullback may be the entry point.
Linkage Assurance offers the sector’s lowest P/E at 3.21 times and trades at just 0.54 times book value; a steep discount for a company generating return on equity of 17.90%. It has lost 15.7% year-to-date and 9% in June, trading at 51% of its 52-week high with an RSI of 36.32. But earnings quality is the central risk. The company books losses from core underwriting and relies heavily on investment income. Q1 2026 PAT of N6.25 billion looks exceptional rather than structural. The value case exists, but it rests on fragile foundations.
Against-the-trend (Contrarian) Stocks
AIICO Insurance is our strongest contrarian pick going into H2. The stock gained 6.86% year-to-date but lost 10% in June alone, leaving it 78% below its 52-week high. Its RSI of 32.21 confirms that the selling pressure is intense. Yet the underlying business remains profitable; trailing EPS of N0.50, a P/E of 8.10x and return on equity of 20.70%. Crucially, its latest quarterly profit increased despite the share price decline. The gap between improving earnings and a falling stock price is exactly what defines a contrarian opportunity.
Veritas Kapital Assurance declined 15.8% year-to-date and 13% in June, trading 47% below its 52-week high with an RSI of 37.14 reflecting weak sentiment. But the fundamentals tell a different story. The company has grown after-tax profit at a 65% CAGR from 2021 to 2025, and Q1 2026 PAT of N1.53 billion annualizes to roughly N6.1 billion, suggesting the trajectory holds. It trades at just 5.65 times earnings with a return on equity of 21.80%. At this valuation, the market appears to be ignoring a strong earnings record.
Stocks That May Struggle to Maintain H1 Positions
The stocks least likely to sustain their positions are those whose share-price movements are not supported by earnings. Fortis recorded the sector’s biggest H1 gain but remained loss-making. International Energy Insurance delivered strong momentum but traded at a relatively high earnings multiple compared with its profitability. Sovereign Trust Insurance fell sharply, but its price-to-earnings ratio remained extremely high because its earnings per share were very low. Lasaco and Guinea Insurance were also loss-making, meaning their low prices alone do not make them strong value or contrarian stocks.
The H2 Picture
Our momentum picks are Custodian Investment and Consolidated Hallmark Holdings. Custodian, Mutual Benefits Assurance and Linkage Assurance stand out as the leading value candidates. AIICO Insurance and Veritas Kapital offer the clearest contrarian cases. Among all the selections, Custodian has the strongest combination of earnings, growth, valuation, and market position. AIICO presents the clearest gap between improving profits and a falling share price. Veritas Kapital carries the most compelling earnings CAGR among the contrarian picks, while Mutual Benefits offers the cleanest turnaround story in the value category. Linkage remains the highest-risk value pick, with earnings quality the key test in H2. These selections are based on available market and financial data and are not direct recommendations to buy or sell any stock.
