NEM Insurance Posts N5.8bn Q3 Profit, Approves N3.01bn Dividend

NEM Insurance Plc has reported a strong third-quarter performance for 2025, posting a profit before tax (PBT) of N5.8 billion, up 66.94% from N3.4 billion in the same period of 2024. The growth was powered by robust investment returns and steady premium income, underscoring the insurer’s strategic balance between underwriting discipline and asset optimization.

The company also announced that shareholders have approved a N3.009 billion dividend for the 2023 financial year, reaffirming NEM’s commitment to rewarding investors and sustaining confidence in its growth trajectory.

Revenue and Investment Strength Drive Growth

For the nine months ended September 30, 2025, NEM Insurance recorded a PBT of N23.7 billion, compared to N15.7 billion a year earlier – a clear indicator of solid operational execution and improved market positioning.

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Insurance revenue rose 33.16% year-on-year to N32 billion for Q3 2025 and 54.55% to N107.4 billion over the nine-month period. After accounting for insurance service expenses of N24.2 billion and reinsurance costs of N5.7 billion, the insurance service result stood at N1.9 billion, slightly lower than N2.8 billion in Q3 2024.

However, this was offset by an exceptional net investment result of N5.8 billion, up 223.18%, driven by higher yields on fixed deposits and strong fair value gains from quoted securities.

• Interest income: N3.8 billion
• Net fair value gains: N2.9 billion

These combined to lift total insurance and investment results to N7.6 billion, representing a 65.63% year-on-year increase.

After deducting N1.8 billion in management expenses, NEM Insurance achieved a post-tax profit of N5.02 billion, marking a 71.82% increase from 2024 levels.

Balance Sheet and Dividend Policy Reflect Stability

NEM Insurance’s total assets climbed to N165.4 billion, from N121.9 billion in the prior year, reflecting prudent portfolio expansion and strong investment growth.
Key components include:

• N74.7 billion in financial investments (at amortized cost)
• N34.6 billion in reinsurance contract assets

Total equity rose 23.73% to N80.9 billion, supported by retained earnings of N53.4 billion (+27.10%).
On the liabilities side, insurance contract liabilities accounted for the bulk of N84.4 billion total obligations.

The insurer also reported N122.2 billion in premiums received, up 43.08% year-on-year, while direct claims paid doubled to N30.5 billion, underscoring its robust claims capacity and customer trust.

Market Performance and Outlook

As of October 24, 2025, NEM Insurance’s shares traded at N30.00, representing a remarkable 173% gain year-to-date, positioning it among the best-performing financial stocks on the Nigerian Exchange (NGX).

The company’s ability to combine steady underwriting performance with strategic investment diversification highlights its financial agility amid Nigeria’s tightening monetary environment.

NEM Insurance’s Q3 results reflect the emerging strength of Nigeria’s insurance and investment ecosystem, where firms leveraging portfolio innovation, reinsurance balance, and strong capital positions continue to outperform.

For investors and regulators, the results highlight how transparent governance, disciplined financial reporting, and consistent dividend policies enhance confidence and attract capital into Nigeria’s insurance subsector – a trend vital to deepening financial inclusion and investor participation in the capital market.