Comparing Coverage: Which Stock in Insurance Giants Cornerstone and Mansard Outperforms Currently?

In the vibrant Nigerian market, insurance stocks have experienced a remarkable surge in 2025. The NGX Insurance Index has witnessed an impressive 82% year-to-date (YtD) growth, with standout performers like AXA Mansard and Cornerstone making significant strides.

Two of the index's top-performing stocks, AXA Mansard and Cornerstone, have seen fluctuations in their profitability due to foreign exchange (FX) volatility. Despite these challenges, both insurers have managed to carve out their respective positions.

AXA Mansard, with an insurance service result of N9.2 billion for the year, has seen a 0.04% year-on-year (YoY) growth, albeit missing forecasts by 12%. On the other hand, Cornerstone reported an insurance service result of N8.1 billion, a staggering 282% YoY jump, and has already achieved 194% of its 2024 financial year (FY) target, beating its forecast by a massive 290%.

When it comes to profitability, Cornerstone stands out with a return on equity (ROE) of 12%, compared to AXA Mansard's 8%. However, Cornerstone's profitability is somewhat offset by its higher price-to-earnings (P/E) ratio of 32x, making it more expensive than AXA Mansard at 19x. Despite this, Cornerstone is slightly cheaper on a price-to-book basis.

In terms of dividend yield, Cornerstone takes the lead with 4.23%, comfortably above AXA Mansard's 2.73%. Cornerstone has also climbed 78% YtD to a N116 billion market cap, while AXA Mansard has gained 101% YtD, lifting its market capitalization to N148.5 billion.

Both insurers retain different proportions of their revenues. Cornerstone retains about 30 kobo per N1 revenue, while AXA Mansard retains only 18 kobo per N1 revenue.

The success of these insurance giants can be attributed to the implementation of the Insurance Industry Reform Act (NIIRA) 2025, which has boosted investor confidence and favored well-capitalized, compliant firms with solid fundamentals. This act has led to a strong earnings growth in the insurance industry, with companies like Mutual Benefits Assurance, NEM Insurance, AIICO Insurance, AXA Mansard, Guinea Insurance, Sovereign Insurance, and Cornerstone experiencing significant growth.

Despite their strong performances, both AXA Mansard and Cornerstone trade above the sector average based on their valuation multiples, signaling that investors are paying a premium relative to their fundamentals.

Investment analysts recommend Cornerstone to be held, citing its strong operational momentum, leaner cost structure, and higher dividend yield. However, its steep P/E ratio makes it less appealing for fresh entry. AXA Mansard, on the other hand, is recommended as a Buy due to its scale advantage, superior ROE, and relatively lower P/E multiple, despite margin pressures and FX reversals.

In the dynamic world of insurance stocks, AXA Mansard and Cornerstone continue to shine, offering investors a fascinating study in market dynamics and investment strategies.

Comparing Coverage: Which Stock in Insurance Giants Cornerstone and Mansard Outperforms Currently?