NEM Insurance Plc has reported a pre-tax profit of N27.9 billion for the full year 2025, according to its latest financial statement published on the Nigerian Exchange.
Although this represents a 16.7% decline from the N33.5 billion recorded in 2024, the performance remains solid, with the fourth quarter contributing N4.2 billion to full-year earnings.
While earnings declined year-on-year, the company delivered a strong top-line performance, supported by robust growth in insurance revenue and premium income.
Insurance revenue rose sharply to N146.1 billion, reflecting strong underwriting activity across key business lines.
As expected, higher revenue was accompanied by rising costs. Insurance service expenses increased by 40.99% to N84.7 billion, while reinsurance contract expenses more than doubled to N38.5 billion from N18.3 billion.
As a result, the insurance service result settled at N22.8 billion.
However, profitability was weighed down by a net foreign exchange loss of N3.0 billion, compared with a N14.7 billion gain in the previous year. This reversal significantly affected investment performance, with the net investment result declining to N15.4 billion, down 33% year-on-year.
When combined, net insurance and investment income came in at N37.6 billion, lower than the N41.4 billion recorded in 2024.
After accounting for management expenses of about N9.6 billion, pre-tax profit settled at N27.9 billion.
NEM Insurance closed the year with total assets of N176.5 billion, representing a 44.81% increase from the previous year, driven largely by growth in financial investments.
On the liabilities side, total liabilities rose to N92.0 billion from N56.4 billion, with insurance contract liabilities accounting for N61.0 billion.
Total equity increased to N84.5 billion from N65.4 billion, supported by retained earnings of N56.2 billion, which remained the largest component of shareholders’ funds.