Key points
- NEM Insurance Plc. has reported a total of N41.46 billion in gross claims paid across its various lines of operation for the financial year ended Dec. 31, 2025.
- Audited annual figures submitted to the Nigerian Exchange Group show a major increase from the N24.24 billion paid in 2024.
- The highest claims payout was recorded in the motor insurance segment, which accounted for N13.00 billion of the total claims.
- Fire insurance followed with claims amounting to N9.04 billion, while the oil and gas segment recorded N7.01 billion.
- GCR Ratings upgraded the company’s national scale financial strength rating to AA+(NG) from AA(NG) with a stable outlook.
Main Story
NEM Insurance Plc. has reported a total of N41.46 billion in gross claims paid across its various lines of operation for the financial year ended Dec. 31, 2025.
This is according to the Group’s audited annual report for the year ended Dec. 31, 2025, submitted to the Nigerian Exchange Group (NGX) and obtained by reporters in Lagos on Wednesday. The figures showed that the parent company paid N41.46bn in 2025 from N24.24bn in 2024.
To evaluate intermediate structural dependencies, financial planners note that maintaining a large pool of liquid assets allows underwriting firms to settle sudden spikes in consumer liabilities without disrupting their broader investment portfolios.
Details from the audited financial statements showed that the highest claims payout was recorded in the motor insurance segment, which accounted for N13.00 billion of the total claims paid during the period.
Fire insurance followed with claims amounting to N9.04 billion, while the oil and gas segment recorded N7.01 billion in claims payments. General accident insurance also posted a significant payout of N6.73 billion.
Furthermore, risk assessment agencies are noting that steady growth in capital buffers helps reinforce market trust among retail and corporate policyholders.
In the marine segment, NEM Insurance paid N3.77 billion in claims, while engineering insurance claims stood at N1.64 billion. Other segments recorded relatively lower claims, as agriculture insurance accounted for N152.21 million in claims, while bond insurance recorded N110.03 million.
NEM Insurance Plc said it is strategically positioned to deliver sustainable value to shareholders and policyholders, while contributing to the development of the insurance sector.
The Issues
- Managing an escalating volume of gross claims payouts, which rose from N24.24 billion to N41.46 billion within a 12-month period.
- Absorbing high claim concentrations within high-risk segments like motor, fire, and oil and gas operations.
- Sustaining a strong risk-adjusted capital profile to maintain the newly upgraded national scale financial strength rating.
What’s Being Said
- Outlining the core organizational foundations that allow the firm to maintain its long-term market commitments, the company stated that its strategic positioning is “backed by a strong capital base, a growing customer network and rising investment income.”
- Explaining what the positive financial metrics indicate regarding its industry standing, the firm noted that “its latest performance further underscored its standing among insurers with strong claims- paying capacity, a key indicator of financial stability and operational reliability in the industry.”
- Detailing the precise institutional upgrades and structural metrics that led to the revised credit evaluation, the rating agency explained that “the upgrade reflects sustained strengthening in the company’s competitive position within the non-life insurance segment, supported by a sound financial profile characterised by robust risk-adjusted capitalisation, adequate liquidity, and strong earnings capacity.”
What’s Next
- The firm will leverage its growing customer network and rising investment income to deliver sustainable value to shareholders and policyholders.
- Management will focus on maintaining adequate liquidity and robust risk-adjusted capitalisation to defend its stable rating outlook.
- Underwriters will continue monitoring operational performance across lower-volume lines like agriculture and bond insurance.
Bottom Line
NEM Insurance Plc settled a massive N41.46 billion in gross claims for the 2025 financial year—up significantly from N24.24 billion in 2024—led by heavy payouts in the motor and fire segments, earning the company a financial strength rating upgrade to AA+(NG) from GCR Ratings due to its robust capitalization and strong claims-paying capacity.
