NEM Insurance Plc has reported insurance revenue of N152.3 billion in its 2025 financial year, compared to N97.9 billion recorded in 2024, reflecting strong growth despite challenging economic conditions and rising operating costs in the country.
Revenue Growth and Performance
Addressing shareholders at the company's annual general meeting, Group Chairman Tope Smart stated that insurance revenue rose by 56 percent during the year under review. This underscores the resilience of NEM's operations and its sustained leadership in the general insurance business. He noted that despite prevailing macroeconomic headwinds, the company maintained its strong market position while continuing to expand operations and improve service delivery across various segments.
Strategic Initiatives and Subsidiary Contributions
Smart attributed the performance partly to strategic growth initiatives, improved underwriting operations, and contributions from subsidiaries such as NEM Asset Management Company Limited and NEM Health Limited. Both subsidiaries positively impacted the group's earnings during the period.
Investment Income and Claims
The company's investment income also grew significantly, rising from N7.6 billion in 2024 to N12.9 billion in 2025, an increase of 70 percent. However, this was lower than the 130.3 percent growth achieved in the previous year. Claims expenses increased substantially as the insurer paid out N49.8 billion in claims compared to N31.3 billion in 2024. The claims ratio rose to 29.8 percent from 28 percent in the preceding year, reflecting higher insurance liabilities and settlement obligations.
Expenses and Profitability
Management expenses climbed from N8.5 billion in 2024 to N10.4 billion in 2025, a 22 percent increase driven by business expansion, inflationary pressures, and rising costs of goods and services. Despite revenue growth, profit before tax declined by 17 percent to N27.9 billion from N33.6 billion in 2024, largely due to fluctuations in foreign exchange gains.
Balance Sheet Strength
The company strengthened its balance sheet as financial assets increased by 38 percent, while total assets and shareholders' equity grew by 49.8 percent and 29 percent, respectively. Earnings per share declined to 475 kobo from 582 kobo in the previous year, reflecting lower profitability.
Dividend Declaration
The board of directors recommended a dividend payout of N1.50 per ordinary share of 50 kobo, totaling N7.52 billion for shareholders, subject to necessary approvals and applicable withholding tax deductions.
Human Capital Development
The company also disclosed that over 98 percent of its workforce participated in various local and international training programs as part of its human capital development strategy aimed at improving staff productivity and operational efficiency.
