Keypoints
- Total group assets increased to N186.04bn in 2025, up from N124.23bn in 2024.
- Group revenue rose to N173.04bn from N121.6bn, supported by premium generation.
- Profit after tax at the group level declined to N23.9bn from N29.24bn.
- Total equity climbed to N84.46bn, reflecting strengthened capital positioning.
- Group liabilities rose to N101.58bn, attributed to stronger underwriting activities.
Main Story
NEM Insurance Plc has reported its financial performance for the year ended Dec. 31, 2025, highlighting a significant expansion in its balance sheet.
In a statement issued on Monday in Lagos, the company disclosed that total group assets rose by N61.81bn to reach N186.04bn, compared to N124.23bn in 2024.
This growth was mirrored at the parent company level, where total assets increased to N178.59bn from N121.93bn.
Group revenue also experienced a significant upward trend, rising to N173.04bn from N121.6bn, while the parent company’s revenue grew to N165.72bn from N119.88bn. The insurer attributed these revenue gains to improved premium generation and stronger investment returns.
However, despite the growth in assets and revenue, the company recorded a decline in profitability during the review period. Group profit before tax fell to N27.98bn from N33.7bn, while group profit after tax dropped to N23.9bn from N29.24bn in the previous year.
Similarly, parent company profit after tax moderated to N23.55bn from N29.08bn. Group liabilities rose to N101.58bn from N58.79bn, an increase the company linked to stronger underwriting activities and growing financial obligations.
Total equity grew to N84.46bn from N65.44bn, which the insurer stated reflects improved shareholder value. The company described the overall performance as a demonstration of resilience and strong market positioning achieved despite economic and industry pressures, reaffirming its commitment to innovation and strengthening underwriting capacity.
The Issues
- The decline in net profit despite a 42% increase in group revenue indicates rising operational costs or higher claims provisions.
- A significant rise in group liabilities by over N42bn points to expanded risk exposure and growing financial obligations across the insurer’s operations.
- Management faces the challenge of balancing sustained business expansion with the need to stabilize bottom-line profitability in a pressurized economic environment.
What’s Being Said
- “At the group level, total assets rose significantly by N61.81bn to N186.04bn in 2025,” stated the company.
- “This growth reflects the company’s continued expansion and strengthened investment base,” the statement added.
- “The performance demonstrates resilience and strong market positioning,” the company commented regarding the results achieved despite industry pressures.
What’s Nex
- The insurer plans to sustain its growth trajectory through the deployment of innovation and customer-focused insurance solutions.
- Efforts will be directed toward strengthening underwriting capacity and delivering improved value to shareholders in the 2026 financial year.
- Investors will monitor whether the current asset expansion leads to a recovery in profit margins in subsequent quarters.
Bottom Line
NEM Insurance achieved a N61.81bn growth in total assets and a substantial increase in revenue for 2025, although profit after tax moderated due to increased liabilities and economic headwinds.
