NEM Insurance Plc is projecting a profit after tax of N19.7 billion

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LagosPolice

LagosPolice

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Oct 14, 2020
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Strong Profit Outlook for NEM Insurance​

NEM Insurance Plc has projected a profit after tax (PAT) of about ₦19.7 billion for the first half of 2026, reflecting the company’s continued expansion and strong underwriting performance in Nigeria’s insurance sector.

The forecast translates to an estimated earnings per share of around ₦3.95, highlighting strong profitability expectations as the company continues to grow its insurance operations across key segments of the market.

If achieved, the projected earnings would represent a notable improvement compared with ₦15.4 billion profit recorded in 2025, continuing the insurer’s steady profit growth over the past few years.

Revenue Expected to Cross ₦100 Billion​

NEM Insurance expects insurance revenue to reach approximately ₦102.4 billion, up from about ₦75.4 billion recorded during the same period in the previous year.

This growth will be driven largely by demand across several insurance categories.

Key contributors to revenue include:

  • Oil and gas insurance: projected at about ₦28 billion
  • Motor insurance: expected to generate roughly ₦27.2 billion
  • Fire insurance: estimated around ₦18.1 billion
  • Other insurance products contributing to the remaining share of revenue.
These segments remain the core of NEM Insurance’s business and reflect the growing demand for risk protection across Nigeria’s corporate and retail sectors.

Rising Costs but Strong Core Performance​

Despite the strong revenue outlook, the company expects higher operational costs as business activities expand.

Insurance service expenses are projected at about ₦62.7 billion, alongside reinsurance expenses estimated at ₦17.1 billion.

Even with these higher costs, NEM Insurance forecasts an insurance service result of roughly ₦22.5 billion, which would represent a significant improvement compared with the ₦15.04 billion recorded previously.

The company also expects:

  • Dividend income of around ₦839.6 million
  • A potential foreign exchange loss of about ₦591.6 million, reflecting currency pressures in Nigeria’s financial environment.

Strong Balance Sheet Growth​

NEM Insurance’s balance sheet is also expected to expand alongside its growing business.

Projected figures include:

  • Total assets: about ₦183.1 billion
  • Total liabilities: about ₦86.9 billion
  • Retained earnings: approximately ₦63.7 billion.
This growth reflects increased underwriting activity and stronger capital positioning.

Stock Performance on the Nigerian Exchange​

Shares of NEM Insurance Plc have also performed strongly on the Nigerian Exchange Limited.

The stock has already delivered over 26% returns in 2026, continuing the momentum from 2025 when the stock gained more than 140% for investors.

The share price recently traded around ₦34 per share, supported by rising trading volumes and positive investor sentiment toward the insurance sector.

What Investors Should Watch​

Market analysts say investors should pay attention to several factors that could influence NEM Insurance’s performance:

  • Growth in Nigeria’s insurance penetration
  • Demand for oil and gas risk coverage
  • Claims and underwriting expenses
  • Foreign exchange volatility
If the company successfully delivers on its projections, it could strengthen its position as one of Nigeria’s most profitable insurance companies.
 
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Reactions: Benjamin E Housel
Do you think NEM Insurance stock still has upside on the Nigerian Exchange, or has the rally already priced in the growth?
 
LagosPolice said:
Do you think NEM Insurance stock still has upside on the Nigerian Exchange, or has the rally already priced in the growth?
Click to expand...
NEM Insurance remains a solid growth stock with structural tailwinds in Nigeria’s insurance market. But entering at N34 per share requires an understanding that part of the expected growth is already priced in, so investors should monitor quarterly results, underwriting margins, and FX impacts closely.
 
Benjamin E Housel said:
NEM Insurance remains a solid growth stock with structural tailwinds in Nigeria’s insurance market. But entering at N34 per share requires an understanding that part of the expected growth is already priced in, so investors should monitor quarterly results, underwriting margins, and FX impacts closely.
Click to expand...
If you are a long-term investor looking at insurance sector growth and NEM’s leadership position, the stock still has upside potential. Its fundamentals are strong, and the company is expanding revenue sustainably.
 
Benjamin E Housel said:
If you are a long-term investor looking at insurance sector growth and NEM’s leadership position, the stock still has upside potential. Its fundamentals are strong, and the company is expanding revenue sustainably.
Click to expand...
If you are a short-term trader, some caution is warranted. The stock has already appreciated substantially, and near-term gains may be more dependent on execution, investor sentiment, and broader market conditions than fundamental surprises.
 
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