NEM Insurance Plc has reported a pre-tax profit of N27.9 billion for the full year 2025, according to its latest financial statements published on the Nigerian Exchange (NGX). While this represents a 16.7% decline from the N33.5 billion recorded in 2024, the company delivered a solid performance driven by robust growth in insurance revenue and premium income.
The fourth quarter contributed N4.2 billion to full-year earnings, demonstrating consistent operational resilience despite challenging market conditions.
Strong Insurance Revenue Drives Top-Line Growth
The company’s total insurance revenue surged to N146.1 billion, reflecting strong underwriting activity across its core business lines. Oil & Gas insurance led the portfolio with N50.4 billion, followed by Motor insurance at N35.5 billion and Fire insurance at N22.3 billion, with other classes making up the balance.
Rising revenue, however, was accompanied by higher costs. Insurance service expenses rose 41% to N84.7 billion, while reinsurance contract expenses more than doubled to N38.5 billion from N18.3 billion, resulting in an insurance service result of N22.8 billion.
Profitability was also impacted by a net foreign exchange loss of N3.0 billion, compared with a N14.7 billion gain in 2024, which weighed on investment returns. Consequently, the net investment result fell 33% year-on-year to N15.4 billion, bringing combined net insurance and investment income to N37.6 billion, slightly below N41.4 billion in 2024.
After accounting for management expenses of N9.6 billion, pre-tax profit settled at N27.9 billion for the year.
Balance Sheet Highlights
NEM Insurance ended 2025 with total assets of N176.5 billion, a 44.8% increase from the previous year, largely driven by growth in financial investments.
Total liabilities rose to N92.0 billion, with insurance contract liabilities accounting for N61.0 billion. Meanwhile, total equity grew to N84.5 billion, supported by retained earnings of N56.2 billion, the largest component of shareholders’ funds.
Key Performance Metrics
- Gross premiums written: N157.3 billion, up from N107.8 billion in 2024
- Direct claims paid: N41.4 billion, reflecting higher underwriting activity
- Despite foreign exchange headwinds, the company maintained strong revenue growth and balance sheet expansion in 2025
Outlook
NEM Insurance’s FY2025 results highlight the company’s ability to grow premium income, diversify its underwriting portfolio, and expand its balance sheet, even amid macroeconomic and FX-related challenges. The focus on core business lines, coupled with disciplined financial management, positions the company for sustained growth in Nigeria’s dynamic insurance market.