NEM Insurance Plc is positioning itself for a strong financial performance in 2026, projecting a ₦19.7 billion Profit After Tax (PAT) for the first half of the year—driven largely by opportunities in Nigeria’s evolving oil and gas sector.
The insurer is capitalizing on ongoing energy reforms, which are unlocking new investments and boosting demand for oil and gas insurance coverage across the value chain.
Oil & Gas Insurance Fuels Revenue Growth
With Nigeria’s energy sector undergoing transformation, NEM Insurance expects oil and gas policies to become its biggest revenue driver.
Key projections include:
- Oil & Gas Premiums: ₦28 billion
- Motor Insurance: ₦27.2 billion
- Fire Insurance: ₦18.1 billion
This surge reflects increased activity in the energy sector, as reforms attract new projects and investments.
Revenue Set to Cross ₦100bn
The company forecasts insurance revenue of ₦102.4 billion, a significant jump from ₦75.4 billion recorded in the same period of 2025.
This growth underscores NEM Insurance’s expanding underwriting capacity and ability to tap into high-value sectors.
Profitability Strengthens Despite Rising Costs
While higher premiums are boosting income, they are also increasing operational costs:
- Insurance Service Expenses: ₦62.7 billion
- Reinsurance Costs: ₦17.1 billion
Despite this, the insurer expects an Insurance Service Result of ₦22.5 billion, up from ₦15.04 billion in 2025—highlighting improved underwriting efficiency.
Projected Profit Before Tax stands at ₦22.2 billion, reinforcing a strong earnings outlook.
Investment Income and FX Pressure
NEM Insurance also expects additional support from investment income:
- Dividend Income: ₦839.6 million (up from ₦626.9 million)
However, currency volatility remains a concern, with a projected foreign exchange loss of ₦591.6 million, reflecting ongoing pressure in Nigeria’s macroeconomic environment.
Strong Balance Sheet Growth
The company’s financial position is also set to improve:
- Total Assets: ₦183.1 billion (up from ₦159.9 billion)
- Retained Earnings: ₦63.7 billion
- Total Liabilities: ₦86.9 billion
This indicates stronger capital reserves and improved financial stability.
Investors Rally Behind NEM Insurance
Investor confidence in NEM Insurance remains high, with its stock delivering impressive returns on the Nigerian equities market.
- 2026 Year-to-Date Return: Over 26%
- 2025 Return: Over 144%
The stock has continued its upward trend, rising from ₦32 in January to around ₦34, supported by strong trading activity and positive market sentiment.
Consistent Growth Trajectory
NEM Insurance has maintained a steady performance in recent years, backed by strong underwriting and expanding operations.
In 2025 alone:
- Gross Premiums: ₦96.8 billion (up 46.64%)
- Claims Paid: ₦20.5 billion (up 125.98%)
This reflects both increased business activity and a stronger commitment to claims settlement.
The Big Picture
NEM Insurance’s outlook highlights a powerful trend: Nigeria’s insurance sector is increasingly tied to developments in the energy industry.
As oil and gas reforms drive investment and risk exposure, insurers like NEM are stepping up to provide coverage—turning sector transformation into financial opportunity.