Lagos, Nigeria – NEM Insurance Plc projects a profit after tax of 19.7 billion naira, roughly $13.1 million USD, for the first half of 2026. This beats last year’s 15.4 billion naira by a wide margin. The company trades on Nigeria’s stock exchange in West Africa, a key market hub.
Oil and gas insurance drives the outlook at 28 billion naira, or about $18.7 million USD. Motor insurance follows closely with 27.2 billion naira, equating to $18.1 million USD. Fire insurance adds 18.1 billion naira. Total revenue may reach 102.4 billion naira, up sharply from 75.4 billion naira in early 2025.
Okay News reports that costs will climb alongside gains. Insurance service expenses could hit 62.7 billion naira, while reinsurance takes 17.1 billion naira. This yields an insurance service result of 22.5 billion naira, better than 15 billion naira last year.
Pre-tax profit may top 22.2 billion naira from 17.9 billion naira previously. Dividend income should rise to 839.6 million naira. However, a foreign exchange loss of 591.6 million naira looms due to currency swings.
The balance sheet looks solid too. Total assets could grow to 183.1 billion naira, or $122 million USD, from 159.9 billion naira. Retained earnings may hit 63.7 billion naira. Liabilities stand at 86.9 billion naira.
NEM’s stock has rallied over 26 percent year-to-date in 2026. It soared 144 percent in 2025 on heavy trading of 248 million shares. The price broke N31.20 resistance in January, closing at N32, and now hovers near N34 with over 100 million shares traded.
Nigeria’s insurance sector thrives amid global oil shocks from Middle East tensions. NEM posted 96.8 billion naira in gross premiums last year, up 46.6 percent. Claims paid rose 126 percent to 20.5 billion naira, showing robust activity.
No down years since 2022, when returns flatlined at zero. Oil and gas lines now outpace motor, reflecting energy market booms. Investors eye steady growth as premiums climb.
This forecast signals confidence in underwriting strength. It comes as peers face headwinds from inflation and claims. Shareholders await results to confirm the trajectory.
