NEM Insurance Plc has reported a profit before tax of N27.98 billion for the 2025 financial year, representing a 17 per cent decline from the N33.70 billion recorded in 2024.
The performance was disclosed in the company’s audited financial statements for the year ended December 31, 2025, reflecting the impact of rising claims, reinsurance costs, and weaker investment income on profitability.
Despite the dip in earnings, the insurer proposed a total dividend payout of N7.5 billion, translating to N1.50 per share, an increase from the N1.00 per share declared in the previous year.
The company recorded strong top-line growth, with insurance revenue rising by 56 per cent to N152.35 billion, driven by expansion in its core underwriting business. However, escalating costs significantly eroded margins.
Insurance service expenses rose by 53 per cent to N93.49 billion, while net expenses on reinsurance contracts surged by 118 per cent to N39.57 billion, compared to N18.13 billion in 2024. Management and other operating expenses also increased to N10.43 billion from N8.52 billion.
In addition, net insurance finance expenses climbed sharply to N1.13 billion from N32.37 million, further weighing on underwriting performance.
Investment income declined by 11 per cent to N20.51 billion, while finance costs more than doubled to N431.52 million, indicating increased borrowing during the period.
Despite these pressures, the company’s insurance service result showed resilience, rising marginally by 3 per cent to N19.30 billion from N18.82 billion in the prior year. However, profit after tax fell by 18 per cent to N23.90 billion.
On the balance sheet, total assets grew by 50 per cent to N186.04 billion, supported by increases in cash reserves, premium receivables, and investment properties.
Total liabilities, however, surged by 73 per cent to N101.58 billion, largely due to higher insurance contract liabilities and tax obligations, resulting in increased risk exposure.
Shareholders’ equity rose by 29 per cent to N84.46 billion, driven by retained earnings of N56.05 billion. The company also recorded improved liquidity, with cash and cash equivalents increasing by 122 per cent to N30.99 billion.
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At the close of trading on April 2, 2026, shares of NEM Insurance remained unchanged at N31.90 on the Nigerian Exchange Limited, despite the earnings release and dividend announcement.
The stock has gained 19 per cent year-to-date, rising from an opening price of N26.80, and is currently ranked 67th on the exchange in terms of performance.
With a market capitalisation of approximately N160 billion, the company ranks as the 51st most valuable stock on the exchange, accounting for about 0.123 per cent of total market value.
