It appears the relative stability in the foreign exchange market is not a boon for NEM Insurance Plc who booked exceptional losses that undermined profitability as the insurer still has the capacity to pay policyholders.
The 2025 audited financial statement of the insurer shows profit after tax (PAT) fell by 17.15 percent to N24.09 billion from N29.08 billion as at December 2024.
The company incurred foreign exchange revaluation loss of N3.01 billion, from a gain of N14.78 billion, which is responsible for the reduction at the bottom line (profit).
NEM Insurance and peer rivals who held dollar denominated assets in their balance sheets were beneficiary of the abrupt devaluation of the currency, but the recent gains of Naira against the foreign currencies exposes them to foreign exchange revaluation headwinds.
Of course, the unification of the foreign exchange market to spur investment is yielding fruit or paying off given the impressive performance of the local currency (Naira).
There has been stability in the exchange rate as the Naira traded within the range of N1,418.40/US$ – N1,421.00/US$ and appreciated by 0.07 percent to close at N1,419.35/US$ at the NFEM window.
Boosted by higher export value, the gross external reserves increased by 0.11 percent to close at $45.95 billion as of 19th January 2026.
NEM Insurance’s revenue was up 51.25 percent to N146.17 billion in the period under review from N96.64 billion the previous year.
Last year, NEM Insurance achieved a rare feat by becoming the first non-life insurance company in Nigeria to record over N100 billion in gross premium income.
Total assets stood at N176.57 billion in December 2025, which is 44.81 percent higher than 2024’s N121.93 billion.
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