NEM Insurance reports N27.98bn pretax profit, proposes N7.5bn dividend in 2025

NEM Insurance Plc has reported a profit before tax of N27.98 billion for the 2025 financial year, representing a 17% decline from N33.70 billion recorded in 2024.

This is according to the company’s audited financial statement for the period ended December 31, 2025.

Despite the profit decline, the company has proposed a total dividend of N7.5 billion, translating to N1.50k per share, an increase from the previous year’s dividend of N1.00k per share.

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The decline in profitability was largely driven by rising claims, reinsurance costs, and weaker investment income during the year.

**Key Highlights (FY 2025 vs FY 2024) **

• Insurance revenue: N152.35 billion, up 56% YoY
• Total revenue: N173.04 billion, up 42% YoY
• Pretax profit: N27.98 billion, down 17% YoY
• Profit for the year: N23.90 billion, down 18% YoY
• EPS: 475 kobo (down 18%)
• Insurance service result: N19.30bn, up 3%
• Finance cost: N431.51mn, up 116%
• Profit attributable to Equity holders: N23.83bn, down from N29.21bn
• Investment income: N20.51 billion, down 11% YoY
• Dividend: N1.50 per 50kobo share, up from N1.00 in 2024

Driving the numbers

The company’s strong top-line performance was driven primarily by its core insurance business, with insurance revenue rising by 56% to N152.35 billion. However, this growth was significantly offset by rising costs.

• Insurance service expenses climbed 53% to N93.49 billion.
• Net expenses on reinsurance contracts surged by 118% to N39.57 billion, up from N18.13 billion.
• Management and other expenses rose to N10.43 billion, up from N8.52 billion.
• Net Insurance finance expenses rose to N1.13 billion, up from N32.37 million
• These cost pressures weighed heavily on underwriting margins.
• Investment income declined by 11% to N20.51 billion, further impacting earnings.
• Finance costs more than doubled to N431.52 million, suggesting increased borrowing.

Despite these pressures, Insurance Service Result rose marginally by 3% to N19.30 billion, up from N18.82 billion in 2024, highlighting some resilience in core operations. However, after accounting for taxes and other expenses, profit after tax fell by 18% to N23.90 billion.

**Balance sheet analysis **

NEM Insurance recorded strong balance sheet growth, with total assets rising by 50% to N186.04 billion, driven by increases in cash reserves, premium receivables, and investment properties.

• However, total liabilities surged by 73% to N101.58 billion, largely due to higher insurance contract liabilities and tax obligations.
• Shareholders’ equity grew by 29% to N84.46 billion, supported by retained earnings of N56.05 billion.
• The company’s liquidity position improved, with cash and cash equivalents rising by 122% to N30.99 billion.

However, the increase in liabilities pushed the liabilities-to-asset ratio higher, indicating rising risk exposure.

Market reaction

The market is yet to fully respond to the earnings and the N1.50 per share dividend announcement, as the stock price remained unchanged at the close of business on Thursday.

• The stock closed flat at N31.90 per share on Thursday, April 2, 2026.
• The share price opened the year at N26.80 and has since gained 19%, ranking it 67th on the NGX in terms of year-to-date performance.

With a market capitalization of N160 billion, NEM Insurance Plc is currently the 51st most valuable stock on the exchange, accounting for about 0.123% of total market value.