Nigeria’s insurance powerhouse, NEM Insurance Plc, is riding the wave of ongoing oil and gas sector reforms—setting its sights on an impressive ₦19.7 billion profit after tax (PAT) for the first half of 2026.
With renewed investments and increased activity across Nigeria’s energy value chain, the insurer is positioning itself to capitalize on rising premiums and stronger underwriting performance.
Oil & Gas Driving Revenue Surge
At the heart of NEM Insurance’s growth strategy is the booming oil and gas insurance segment, expected to generate a leading ₦28 billion in premiums.
Other key contributors include:
- Motor Insurance: ₦27.2 billion
- Fire Insurance: ₦18.1 billion
- Other Segments: Contributing to overall revenue growth
Overall, the company projects total insurance revenue to hit ₦102.4 billion, a significant jump from ₦75.4 billion recorded in the same period of 2025.
Strong Profit Momentum
If achieved, the projected ₦19.7 billion profit would mark another milestone in NEM’s upward trajectory:
- 2024: ₦10.6 billion
- 2025: ₦15.4 billion
- 2026 (Projected H1): ₦19.7 billion
This translates to an estimated earnings per share (EPS) of ₦3.95, reinforcing investor confidence in the company’s long-term growth story.
Managing Costs While Scaling Up
With higher premiums come higher costs. NEM anticipates:
- Insurance service expenses: ₦62.7 billion
- Reinsurance costs: ₦17.1 billion
Despite this, the company still expects a strong insurance service result of ₦22.5 billion, reflecting improved efficiency and underwriting discipline.
Investment income is also set to rise, with dividend earnings projected at ₦839.6 million. However, foreign exchange volatility may weigh slightly on performance, with an estimated ₦591.6 million FX loss.
Balance Sheet Strengthens
NEM Insurance is not just growing profits—it’s strengthening its financial position:
- Total Assets: Expected to reach ₦183.1 billion
- Total Liabilities: ₦86.9 billion
- Retained Earnings: ₦63.7 billion
This solid balance sheet provides a strong foundation for sustained expansion and resilience in a dynamic market.
Investors Riding the Wave 📈
NEM Insurance’s strong fundamentals are clearly resonating with investors. The company’s stock has delivered:
- Over 26% year-to-date return in 2026
- More than 144% return in 2025
The share price recently broke a key resistance level, climbing from ₦31.20 to around ₦34 per share, with trading volumes already surpassing 100 million shares this year.
Notably, the company has maintained consistent positive returns since 2022, underscoring its reputation as a reliable performer in Nigeria’s equities market.
The Bigger Picture
As Nigeria pushes for stronger energy security and increased oil sector investments, insurers like NEM are emerging as key beneficiaries.
By aligning its strategy with energy sector growth, rising premiums, and disciplined underwriting, NEM Insurance is positioning itself as a major winner in Nigeria’s evolving financial landscape.