NEM Insurance Posts N27.9bn Profit Despite FX and Investment Headwinds

NEM Insurance Plc has announced a pre-tax profit of N27.9 billion for the full year ended 2025, according to its latest annual financial results filed with the Nigerian Exchange. This result underscores the company’s ability to grow its core business, even in a challenging macroeconomic environment.

Although this profit figure represents a 16.7 % decline compared with the N33.5 billion reported in 2024, the performance remains noteworthy and resilient, reflecting strong underwriting revenue and higher premiums earned throughout the year.

“Our revenue momentum stayed strong, we sustained disciplined underwriting, and we expanded the business across key insurance lines,” the company said in a statement, highlighting firm operational momentum.

How Revenue Grew

Insurance revenue surged to N146.1 billion in 2025, marking a 51 % increase year-on-year, a core driver of the overall performance. This growth was driven by improved premium inflows across major lines such as Oil & Gas, Motor, and Fire insurance, with oil & gas insurance contributing the largest share of the revenue mix.

Insurance service results also rose strongly, reaching N84.7 billion, up nearly 41 % from 2024. This reflects improved underwriting performance and effective pricing strategies, which helped offset a portion of rising costs.

Costs and Investment Income Pressure

Despite the revenue increase, profitability was affected by cost pressures and investment challenges. A net foreign exchange loss of N3.0 billion was recorded in 2025, reversing a gain the company saw the previous year. This shifted the investment income dynamic and dampened overall financial results.

Net investment returns declined to N15.4 billion, down from N23.05 billion in 2024, as the company faced lower returns on some financial assets and the adverse impact of currency movements on investment valuations.

Nonetheless, when combined with the insurance service result, net insurance and investment income remained substantial, though slightly lower than in 2024.

Balance Sheet Growth

NEM Insurance’s balance sheet also grew significantly in 2025, with total assets rising to N176.5 billion, a near 45 % increase from the prior year. This asset growth was largely supported by increased investment holdings and stronger capital base.

On the liabilities side, total liabilities expanded to N92.0 billion, while shareholders’ equity climbed to N84.5 billion, underpinned by retained earnings and robust financial positions.

Gross premiums written also rose robustly, climbing to N157.3 billion from N107.8 billion, illustrating stronger client engagement and broader market penetration.

Claims and Operational Activity

Direct claims paid out during the year totaled N41.4 billion, reflecting the company’s commitment to honoring obligations and supporting policyholders amid growing business activity.

Expenses associated with insurance and reinsurance contracts increased, as expected, alongside the expansion of business lines and greater risk coverage.

Although there was a contraction in profit compared with the prior year, NEM Insurance’s top-line strength and balance sheet expansion signal long-term resilience in its core insurance operations.

The company is well-positioned to build on its gains, particularly as Nigeria’s insurance sector continues to expand in scale and sophistication.

The insurance industry’s growth supports broader economic stability by mobilizing savings, improving risk mitigation, and enhancing financial intermediation. Nigeria’s insurance sector, with assets nearing record levels, plays a pivotal role in capital formation and resilience, contributing to investment flows and cushioning businesses against macroeconomic volatility.