NEM Insurance reports N31.02 billion pre-tax profit in 9M 2026, up 31%

NEM Insurance Plc recorded a 30.54% increase in pre-tax profit to N31.02 billion for the nine months ended September 30, 2026, compared with N23.77 billion in the corresponding period of 2025, supported by stronger insurance operations and investment gains.

According to the company’s unaudited financial statements filed with the Nigerian Exchange (NGX) on Thursday, October 29, 2026, the nine-month pre-tax profit has already surpassed the N27.98 billion recorded for the entire 2025 financial year.

Profit after tax also rose by 30.54% to N26.77 billion, despite higher reinsurance expenses, foreign exchange losses and management costs during the period.

Investment gains boost NEM Profit

NEM Insurance’s earnings growth was supported by improved insurance service results and a substantial increase in fair-value gains on investments.

• Insurance revenue rose by 7.68% to N115.69 billion, while insurance service expenses declined by 6.16% to N63.49 billion, lifting the insurance service result by 22.07% to N20.81 billion.
• Motor insurance remained the largest revenue contributor at N33.28 billion, followed by Oil and Gas at N31.48 billion, Fire at N19.52 billion and Marine at N14.17 billion.
• Motor also generated the largest insurance service result at N11.67 billion, ahead of Marine at N3.93 billion and Fire at N2.53 billion.
• Interest income rose by 23.46% to N9.47 billion.
• Net investment result increased by 37.12% to N19.03 billion, while the combined insurance and investment result rose by 26.86% to N38.55 billion.
• Net expenses on reinsurance contracts climbed by 38.11% to N31.39 billion from N22.73 billion, significantly outpacing insurance revenue growth.
• Net foreign exchange losses increased to N3.61 billion from N974.54 million, while management expenses rose by 12.78% to N7.43 billion.

The increase in investment gains helped offset higher reinsurance and foreign exchange costs, supporting the growth in pre-tax profit.

NEM investment portfolio expands

NEM Insurance’s total assets increased by 14.35% to N204.22 billion from N178.59 billion at the end of December 2025, reflecting growth in its investment portfolio.

• Total liabilities rose by 6.74% to N100.97 billion, while shareholders’ equity increased by 22.91% to N103.26 billion, supported by retained earnings of N69.73 billion.
• Insurance contract liabilities increased by 28.79% to N81.78 billion, with liabilities for remaining coverage rising to N53.10 billion from N36.90 billion.
• Listed equities measured at fair value through profit or loss increased to N31.98 billion from N18.40 billion, while investments at amortised cost rose to N88.63 billion from N76.78 billion.
• Cash and cash equivalents declined by 55.64% to N12.25 billion from N27.61 billion as the company’s investment portfolio expanded.
• Operating cash flow turned negative at N1.06 billion, compared with positive operating cash flow of N10.35 billion in the corresponding period of 2025.
• Investing activities recorded a net cash outflow of N7.01 billion, while financing activities consumed N7.29 billion, largely reflecting dividend payments.
• The statement of changes in equity recorded N7.52 billion in dividends paid, compared with N5.02 billion a year earlier.

Despite the increase in accounting profit, the decline in cash balances and negative operating cash flow highlight the difference between earnings growth and cash generation.

NEM shares gain 2.61% YTD

NEM Insurance was seen trading at N27.50 per share during the early trading session on Thursday, October 29, 2026, according to the supplied market data.

• The stock began the year at N26.80 per share and has gained approximately 2.61%, ranking 81st on the Nigerian Exchange in year-to-date performance.
• NEM reached the year’s high of N34.45 per share on September 2, before declining from that level.
• The stock price rose from its year low of N25.50 per share on July 9.
• Issued share capital remained at approximately 5.016 billion shares, while substantial shareholders collectively held 40.60% of the company.
• The nine-month results indicate stronger insurance profitability and investment returns, alongside rising reinsurance costs and foreign exchange losses.

The ability to sustain investment gains while improving cash generation will be relevant to NEM Insurance’s earnings outlook in the final quarter of 2026. However, the decline in operating cash flow and cash balances will remain important considerations for investors.