NEM Insurance targets N19.7 billion H1 profit as oil and gas estimates outpace motor

NEM Insurance Plc is projecting a profit after tax of N19.7 billion for the first half of 2026, translating to an estimated earnings per share of N3.95.

The projection represents a significant improvement from the N15.4 billion profit recorded in 2025, which itself marked growth from the N10.6 billion posted in 2024.

Performance is expected to be largely supported by strong insurance revenue projected at N102.4 billion, up from N75.4 billion reported in the first half of 2025, if realized.

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Oil and gas insurance is expected to contribute N28 billion, followed by motor insurance at N27.2 billion and fire insurance at N18.1 billion, with other product lines accounting for the balance.

**What the data is saying **

The projected revenue growth is expected to drive higher insurance service expenses, which are estimated at N62.7 billion, alongside reinsurance expenses of N17.1 billion, resulting in an insurance service result of N22.5 billion.

• This compares with an insurance service result of N15.04 billion recorded in 2025, indicating a notable improvement in the insurer’s core underwriting performance based on the latest forecast.

Dividend income is projected to rise to N839.6 million from N626.9 million in 2025, although the company expects to record a foreign exchange loss of N591.6 million.

• This contrasts with 2025, when the company did not report any foreign exchange losses, highlighting potential currency pressures within the projected period.

Other operating expenses are estimated at N7.2 billion, which, alongside finance costs of N38.8 million and credit loss allowances of N291.5 million, is expected to bring forecast pre-tax profit to N22.2 billion.

The projected pre-tax profit represents an increase compared with the N17.9 billion recorded in the first half of 2025.

On the balance sheet, total assets are projected to rise to N183.1 billion from N159.9 billion, while total liabilities are expected at N86.9 billion, with retained earnings forecast at N63.7 billion.

Get up to speed

NEM Insurance Plc has delivered a year-to-date return of over 26% in 2026 on the Nigerian equities market, extending the strong momentum the stock built during its standout performance in 2025.

• In 2025, the stock returned over 144% to investors, supported by strong trading activity that saw about 248 million shares exchanged on the market.

The momentum carried into 2026, with the stock breaking a key technical resistance level of N31.20 in January, a mark that had held since August 2025, before closing the month at N32 per share.

So far in 2026, the share price has climbed to around N34, with trading activity already exceeding 100 million shares exchanged year-to-date.

**What you should know **

• NEM Insurance has not recorded a negative year since 2022, when the stock closed the year flat with a 0.00% return.
• In FY2025, the company recorded N96.8 billion in gross premiums, a 46.64% increase, while direct claims paid to policyholders rose 125.98% to N20.5 billion, reflecting heightened activity.

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