NEM Insurance Plc has reported a mixed financial performance for the year ended December 31, 2025, as strong growth in insurance revenue was offset by rising service and reinsurance costs, reducing overall profitability.
The company recorded insurance revenue of ₦146.17 billion, representing a 54% increase from ₦96.64 billion in 2024.
However, insurance service expenses rose sharply to ₦84.77 billion, compared to ₦60.13 billion in the previous year, reflecting higher claims costs, underwriting expenses, and policy servicing obligations.
In addition, net expenses on reinsurance contracts increased to ₦38.54 billion, up from ₦18.14 billion in 2024.
The combined impact of higher insurance service expenses and reinsurance costs significantly reduced profitability during the period.
As a result, the company’s insurance service result declined to ₦22.86 billion, compared to ₦18.38 billion in the prior year.
Despite strong investment income contributions, profit before tax declined to ₦27.92 billion, from ₦33.52 billion recorded in 2024.
Consequently, profit after tax fell by 17% to ₦24.10 billion, compared to ₦29.08 billion in the previous year.
Balance Sheet
On the balance sheet, NEM Insurance recorded strong asset expansion. Total assets rose by 45% to ₦176.58 billion, from ₦121.93 billion in 2024.
Financial investments stood at ₦97.52 billion, while cash and cash equivalents increased to ₦28.96 billion. Reinsurance contract assets also expanded to ₦28.94 billion, reflecting higher recoverables tied to underwriting activity.
Other receivables and prepayments closed at ₦10.90 billion, while property, plant and equipment stood at ₦4.68 billion.
Total liabilities increased sharply by 63% to ₦92.02 billion, from ₦56.49 billion in the prior year. The increase was mainly driven by higher insurance obligations, with insurance contract liabilities rising to ₦61.03 billion and other technical liabilities reaching ₦13.56 billion.
Income tax liabilities rose to ₦9.16 billion, deferred tax liabilities remained at ₦2.72 billion, while other payables stood at ₦5.20 billion.
Shareholders’ equity improved to ₦84.56 billion, supported by retained earnings growth and higher statutory contingency reserves.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
