NEM Insurance Plc has reported a pre-tax profit of N27.9 billion for the full year 2025, according to its latest financial statement published on the Nigerian Exchange.
Although this represents a 16.7% decline from the N33.5 billion recorded in 2024, the performance remains solid, with the fourth quarter contributing N4.2 billion to full-year earnings.
While earnings declined year-on-year, the company delivered a strong top-line performance, supported by robust growth in insurance revenue and premium income.
Key highlights (FY 2025 vs FY 2024)
- Insurance revenue: N146.1 billion, up 51.25% YoY
- Net insurance service result: N84.7 billion, up 40.99% YoY
- Net foreign exchange loss: N3.01 billion vs N14.7 billion gain
- Net investment result: N15.4 billion vs N23.05 billion
- Net insurance & investment result: N37.6 billion, down 9.1%
- Pre-tax profit: N27.9 billion, down 16.7% YoY
- Total assets: N176.5 billion, up 44.81% YoY
What the company’s books are saying
Insurance revenue rose sharply to N146.1 billion, reflecting strong underwriting activity across key business lines.
- Oil & Gas insurance generated the largest share of revenue at N50.4 billion, followed by Motor insurance at N35.5 billion and Fire insurance at N22.3 billion, with other classes accounting for the balance.
As expected, higher revenue was accompanied by rising costs. Insurance service expenses increased by 40.99% to N84.7 billion, while reinsurance contract expenses more than doubled to N38.5 billion from N18.3 billion.
As a result, the insurance service result settled at N22.8 billion.
However, profitability was weighed down by a net foreign exchange loss of N3.0 billion, compared with a N14.7 billion gain in the previous year. This reversal significantly affected investment performance, with the net investment result declining to N15.4 billion, down 33% year-on-year.
When combined, net insurance and investment income came in at N37.6 billion, lower than the N41.4 billion recorded in 2024.
After accounting for management expenses of about N9.6 billion, pre-tax profit settled at N27.9 billion.
Balance sheet performance
NEM Insurance closed the year with total assets of N176.5 billion, representing a 44.81% increase from the previous year, driven largely by growth in financial investments.
On the liabilities side, total liabilities rose to N92.0 billion from N56.4 billion, with insurance contract liabilities accounting for N61.0 billion.
Total equity increased to N84.5 billion from N65.4 billion, supported by retained earnings of N56.2 billion, which remained the largest component of shareholders’ funds.
What to know
- Gross premiums written rose to N157.3 billion from N107.8 billion in 2024.
- Direct claims paid increased to N41.4 billion, reflecting higher business activity
- Despite FX-related headwinds, the company maintained strong revenue growth and balance sheet expansion in 2025.
