NEM Insurance Plc has recorded insurance revenue of N152.3 billion in its 2025 financial operations, against N97.9 billion posted in the corresponding period of 2024, reflecting strong growth despite challenging economic conditions and rising operating costs within the country.

Addressing shareholders at the company’s annual general meeting, Group Chairman, Tope Smart, said the company’s insurance revenue rose by 56 per cent during the year under review, underscoring the resilience of its operations and sustained leadership in the general insurance business.

He stated that despite prevailing macroeconomic headwinds, the company maintained its strong market position while continuing to expand its business operations and improve service delivery across its various segments.

Smart attributed the company’s performance partly to strategic growth initiatives, improved underwriting operations and contributions from its subsidiaries, including NEM Asset Management Company Limited and NEM Health Limited, which both contributed positively to the group’s earnings during the period.

The company’s investment income also recorded significant growth, rising from N7.6 billion in 2024 to N12.9 billion in 2025, representing an increase of 70 per cent, although lower than the 130.3 per cent growth achieved in the previous year.

Claims expenses increased substantially during the year as the insurer paid out N49.8 billion in claims compared to N31.3 billion in 2024. The claims ratio rose to 29.8 per cent from 28 per cent recorded in the preceding year, reflecting increased insurance liabilities and higher settlement obligations across business segments.

Management expenses also climbed from N8.5 billion in 2024 to N10.4 billion in 2025, representing a 22 per cent increase driven by business expansion, inflationary pressures and the rising cost of goods and services during the financial year.

Despite the revenue growth, the group’s profit before tax declined by 17 per cent to N27.9 billion from N33.6 billion recorded in 2024 due largely to fluctuations in foreign exchange gains during the period.

The company, however, strengthened its balance sheet position as financial assets increased by 38 per cent, while total assets and shareholders’ equity grew by 49.8 per cent and 29 per cent respectively.

Earnings per share declined to 475 kobo from 582 kobo recorded in the previous year, reflecting the lower profitability level posted during the period under review.

The board of directors recommended a dividend payout of N1.50 per ordinary share of 50 kobo, amounting to N7.52 billion for shareholders, subject to the necessary approvals and applicable withholding tax deductions.

The company also disclosed that over 98 per cent of its workforce participated in various local and international training programmes as part of its human capital development strategy aimed at improving staff productivity and operational efficiency.