NEM Insurance Plc has posted its first profit decline in at least five years, as surging costs and weaker investment returns erased the gains from booming premium income.
The Lagos-based insurer’s gross written premium jumped 51 percent to N146.17 billion in 2025 from N96.64 billion a year earlier, buoyed by stronger underwriting across its portfolio. Yet profit after tax fell 17 percent to N24.09 billion, down from N29.08 billion in 2024.
Insurance revenue climbed to N146.17 billion, while insurance service expenses surged to N84.77 billion, driven by higher claims and contract costs amid stubborn inflation and rising replacement prices. Still, underwriting performance strengthened, with insurance service result more than doubling to N38.54 billion from N18.14 billion a year earlier.
Investment income, however, weakened. Net investment result slipped to N15.45 billion from N23.06 billion, reflecting softer interest income and fewer valuation gains compared with last year’s yield-driven windfall.
Rising costs added further pressure. Management expenses increased to N9.64 billion from N7.92 billion, while finance costs rose to N713.95 million from N517.77 million, underscoring tighter financial conditions.
Profit before tax declined to N27.92 billion from N33.52 billion, before tax charges pulled earnings lower.
The results highlight a growing squeeze in Nigeria’s insurance industry, where premium growth is accelerating, but volatile investment markets and rising costs are undermining bottom-line performance.
NEM Insurance did not announce a dividend with the results.
The stock has gained 26.5 percent year-to-date, closing Wednesday at N33.90, ranking 34th on the NGX and up 29 percent over the past four weeks.
