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NEM Insurance Plc has proved resilient despite economic turbulence as the non-life insurer continues to leverage technology to drive consistent profit growth.
For instance, for the first nine months through September 2025, NEM Insurance’s profit after tax (PAT) spiked by 52.29 percent to N20.51 billion from N13.55 billion as at September 2024.
This impressive performance also hinges on improved consumer interest towards insurance products and operational operations as the company has launched market penetration products which are meeting customers’ needs.
Inflationary pressures and foreign exchange volatility that are responsible for rising claims expenses have forced insurers to think out of the box as they are investing in the latest technology needed to tame costs and maximise profit.
However, the sector is beset by low penetration caused by legacy factors such as little awareness of insurance products, lack of trust, weak regulations, high poverty and depressed disposable income
Currently, Nigeria’s insurance market contributes less than 1 percent to the global market premiums and records a penetration rate of 0.40 percent. This remains poor compared to other Sub-Saharan countries like South Africa (12.20 percent) and Namibia (7.10 percent). Similarly, the sector struggles with a low insurance density of $7.00 compared to South Africa ($857.00) and Namibia ($335.00).
Further analysis of the financial statement of NEM Insurance shows that revenue was up 54.55 percent to N107.43 billion in the period under review from N69.51 billion as at September 2024.
The company’s share price has been rising in tandem with the consistent earnings growth and investors are sanguine about the future earnings growth.
For instance, NEM’s has a year to date (YTD) return of 156.62 percent, outperforming the NGXASI index 50.10 percent.
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