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, as strong growth in oil and gas underwriting boosts revenue expectations.
The forecast marks a significant rise from the N15.4 billion profit recorded in 2025, which had already improved on the N10.6 billion reported in 2024, underscoring the insurer’s sustained earnings growth.
According to the company’s projections, insurance revenue is expected to reach N102.4 billion, compared with N75.4 billion in the first half of 2025. The oil and gas segment is projected to contribute the largest share at N28 billion, followed closely by motor insurance at N27.2 billion and fire insurance at N18.1 billion, with other product lines accounting for the remainder.
The anticipated revenue growth is expected to push insurance service expenses to N62.7 billion and reinsurance expenses to N17.1 billion, resulting in a projected insurance service result of N22.5 billion, up from N15.04 billion recorded in 2025.
The company also expects dividend income to increase to N839.6 million from N626.9 million last year, although it anticipates a foreign exchange loss of N591.6 million, reflecting potential currency pressures. After accounting for other operating expenses of N7.2 billion, finance costs and credit loss allowances, pre-tax profit is projected at N22.2 billion, compared with N17.9 billion in the same period of 2025.
On the balance sheet, total assets are forecast to rise to N183.1 billion from N159.9 billion, while liabilities are projected at N86.9 billion, with retained earnings expected to reach N63.7 billion.
The company’s strong financial outlook comes amid solid market performance. Shares of NEM Insurance Plc have delivered over 26 per cent year-to-date returns in 2026 on the Nigerian Exchange Limited, building on a 144 per cent gain recorded in 2025.
The stock recently broke a key resistance level of N31.20, closing January at N32 per share and trading around N34 so far in 2026, with more than 100 million shares already exchanged this year.
Industry data also shows the company recorded N96.8 billion in gross premiums in 2025, representing a 46.6 per cent increase, while claims paid to policyholders rose nearly 126 per cent to N20.5 billion, reflecting stronger activity across its insurance lines.
