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. If realized, this represents a substantial improvement from the N15.4 billion recorded in the same period of 2025, which itself marked growth from N10.6 billion in 2024.
The company’s performance is expected to be underpinned by strong insurance revenue, projected at N102.4 billion, up from N75.4 billion in the first half of 2025. Sectoral contributions are anticipated to come primarily from oil and gas insurance (N28 billion), motor insurance (N27.2 billion), and fire insurance (N18.1 billion), with the balance generated by other product lines.
Rising revenue is expected to drive higher insurance service expenses, forecast at N62.7 billion, alongside reinsurance costs of N17.1 billion, resulting in an insurance service result of N22.5 billion. This reflects a notable improvement in the insurer’s core underwriting performance compared with the N15.04 billion recorded in 2025.
Dividend income is projected to increase to N839.6 million from N626.9 million in 2025. However, the company anticipates a foreign exchange loss of N591.6 million, a departure from the previous year when no such losses were reported, highlighting potential currency pressures in the forecast period.
Other operating expenses are estimated at N7.2 billion, while finance costs and credit loss allowances are expected at N38.8 million and N291.5 million, respectively. These projections bring the forecast pre-tax profit to N22.2 billion, up from N17.9 billion in the first half of 2025.
On the balance sheet, total assets are projected to rise to N183.1 billion from N159.9 billion, with total liabilities expected at N86.9 billion, and retained earnings forecast at N63.7 billion.
Share Performance Mirrors Strong Operational Momentum
NEM Insurance has delivered a year-to-date return of over 26% on the Nigerian equities market in 2026, building on a remarkable 2025 performance. Last year, the stock returned over 144%, supported by robust trading activity with approximately 248 million shares exchanged.
The momentum carried into 2026, with the stock breaking a key technical resistance level of N31.20 in January—a mark held since August 2025—before closing the month at N32 per share. So far, the share price has climbed to around N34, with trading activity exceeding 100 million shares year-to-date.
NEM Insurance has maintained positive performance since 2022, when the stock closed the year flat. In FY2025, the company recorded N96.8 billion in gross premiums, a 46.6% increase, while direct claims paid rose 125.98% to N20.5 billion, reflecting heightened underwriting and claims activity.
With its strong projected earnings, solid revenue growth, and resilient stock performance, NEM Insurance appears well-positioned to sustain momentum through the first half of 2026, signaling confidence in both its underwriting strategies and investor appeal.