Copyright tribuneonlineng
Nigeria’s insurance industry has continued its impressive upward trajectory in 2025, defying economic challenges and posting robust premium growth across both life and non-life segments. According to the latest Insurance Market Performance Bulletin released by the National Insurance Commission (NAICOM), the sector’s gross written premium (GWP) soared to N1.21 trillion in the second quarter of 2025, representing a 49.3 per cent year-on-year increase compared to the same period in 2024 and a 57.8 per cent quarter-on-quarter growth. This performance underscores the growing relevance of insurance as a stabilising force in Nigeria’s financial system, even as operators navigate inflationary pressures, currency volatility, and rising claims costs. At the heart of this strong sectoral showing is NEM Insurance Plc, one of Nigeria’s oldest and most trusted underwriters, which has consistently demonstrated financial strength, operational efficiency, and disciplined management. The company’s second quarter (Q2 2025) financial report reaffirms its leadership position among the top three general insurers in the country. NEM Insurance posts N75.41bn revenue in Q2 For the quarter ended June 30, 2025, NEM Insurance Plc reported insurance revenue of N75.41 billion, a substantial leap from N45.47 billion recorded in the corresponding period of 2024. This represents one of the most remarkable quarterly performances by a Nigerian insurer in recent years. The firm’s Profit Before Tax (PBT) stood at N17.94 billion, compared to N12.21 billion in the previous year, while Profit After Tax (PAT) rose to N15.48 billion from N10.63 billion. Although rising claims and higher operating costs trimmed overall margins, the company’s profitability remains solid, driven by prudent underwriting and efficient investment management. As of June 30, 2025, total assets climbed to N159.9 billion, up from N121.93 billion recorded at the end of 2024. Equity rose to N75.93 billion, reflecting shareholder confidence and the company’s ability to generate sustainable returns. On the liability side, NEM reported N83.97 billion, up from N56.49 billion in December 2024, while its cash and cash equivalents closed the quarter at N11.82 billion. Operating cash flow for the period amounted to N8.78 billion, with investing and financing activities resulting in outflows of N4.46 billion and N5.28 billion, respectively. Positioned for Nigeria’s new capital regime NEM Insurance’s capital position remains one of the strongest in Nigeria’s general insurance segment. The company’s capital base significantly exceeds the Minimum Capital Requirement (MCR) prescribed under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, positioning it advantageously for the new capital regime that takes effect in less than a year. Its N5.02 billion share capital remains unchanged, while the statutory contingency reserve has risen to N18.75 billion. Retained earnings stand at N49.40 billion, further underscoring the insurer’s financial resilience. The company’s asset revaluation reserve remains steady at N2.79 billion. This capital strength, coupled with a disciplined risk management framework, enables NEM to underwrite larger-ticket policies in energy, infrastructure, and manufacturing, key growth areas as Nigeria pushes for industrial expansion and foreign direct investment. Industry-wide growth: Non-life segment dominates The insurance industry’s total asset base reached approximately N4.4 trillion in Q2 2025, nearly doubling the N2.3 trillion reported in the same period of 2024. NAICOM’s data show that non-life business accounted for N2.5 trillion, while life insurance contributed N1.9 trillion. The non-life segment maintained its traditional dominance, representing 67.2 per cent of the total premium pool, while the life segment accounted for 32.8 per cent. Within the non-life portfolio, oil and gas insurance led with 31.2 per cent of total premiums, followed by fire insurance (18.9 per cent), motor insurance (15.8 per cent), and general accident and miscellaneous policies (8.9 per cent each). Marine and aviation insurance contributed 8.8 per cent and 7.4 per cent , respectively. This performance underscores the growing importance of energy and infrastructure insurance in driving sectoral revenue, as more corporates seek protection against operational, environmental, and asset-related risks. Recognition for leadership, innovation NEM Insurance’s strong fundamentals and consistent growth trajectory have not gone unnoticed. The company’s Managing Director and Chief Executive Officer, Mr. Andrew Ikekhua, was recently honoured among Nigeria’s Top 25 Chief Executive Officers (CEOs) at the prestigious BusinessDay Top 25 CEOs Awards held in Lagos. The award organisers described Ikekhua and NEM Insurance as “a shining example of resilience and innovation in Nigeria’s insurance industry,” highlighting the company’s sustained growth, operational efficiency, and strong customer confidence. They commended its commitment to digital transformation, corporate governance, and product diversification, which have reinforced its position as a trusted insurer for both retail and corporate clients. Ikekhua, in his acceptance speech, attributed the recognition to the dedication of NEM’s workforce and divine grace. “This honour belongs to the hardworking team at NEM Insurance and to God Almighty, who continues to guide our steps as we serve our customers and stakeholders,” he said. Financial strength and market confidence NEM’s sound financial position continues to attract investor and regulatory confidence. In 2025, the company received an ‘AA+ (NG)’ credit rating with a Stable Outlook from Global Credit Rating (GCR), an affiliate of Moody’s Corporation. The rating affirmed the insurer’s robust capital adequacy, prudent underwriting policies, and consistent earnings capacity. As of year-end 2024, total assets had already exceeded N150 billion, while shareholders’ funds crossed the N75 billion threshold, a testament to its disciplined capital management and profitability. Beyond strong numbers, NEM Insurance has demonstrated reliability where it matters most -claims settlement. In 2024 alone, the company paid out over N24 billion in legitimate claims, reinforcing its reputation as a dependable insurer that prioritises customer trust. Simultaneously, shareholders enjoyed dividend payouts exceeding N5 billion, balancing the firm’s dual commitment to policyholder satisfaction and investor reward. Driving sustainability and corporate governance Under Ikekhua’s leadership, NEM Insurance has deepened its focus on sustainability, risk diversification, and digital transformation. The firm has invested significantly in technology-driven claims processing and customer engagement platforms, reducing turnaround time and enhancing transparency. The company also maintains a rigorous corporate governance structure that aligns with global best practices. Regular board evaluations, internal control upgrades, and transparent reporting have ensured that NEM continues to meet regulatory expectations while creating long-term stakeholder value. In addition, NEM’s corporate social responsibility (CSR) initiatives continue to make an impact in education, health, and youth empowerment, further strengthening its reputation as a responsible corporate citizen. As Nigeria’s economy gradually stabilizes under ongoing reforms, the insurance industry is poised for further expansion. Regulatory initiatives such as the NIIRA 2025 and increasing enforcement of compulsory insurance policies are expected to unlock new growth opportunities. With its strong capital base, sound risk management, and customer-centric approach, NEM Insurance Plc is strategically positioned to capitalize on these opportunities and deepen its market share across key business lines. Industry analysts believe that NEM’s continued investments in innovation, talent development, and governance will sustain its leadership role, even as competition intensifies. For stakeholders and investors, the company’s steady trajectory offers both assurance and promise. NEM Insurance’s second-quarter 2025 performance reaffirms its status as a powerhouse in Nigeria’s non-life insurance market. With ?75.41 billion in revenue, rising profitability, and robust capital adequacy, the company exemplifies the resilience and innovation driving the insurance industry’s renaissance. As the sector marches toward a trillion-naira future, NEM Insurance stands not just as a participant but as a pacesetter, shaping the next chapter of Nigeria’s financial services growth story.
