By Rosemary Iwunze

Insurance companies in Nigeria have continued to demonstrate resilience in premium generation, as the industry’s gross written premium (GWP) surged to ₦1.21 trillion in the second quarter of 2025 — representing a 49.3% year-on-year growth compared to the same period in 2024, and a 57.8% quarter-on-quarter increase.

According to the National Insurance Commission (NAICOM), the sector recorded this remarkable performance despite economic headwinds, as detailed in its latest Bulletin of the Insurance Market Performance.

Among the top-performing companies, NEM Insurance Plc maintained its strong position in the market, ranking among the top three insurance firms in Nigeria in terms of insurance revenue generation within the general business segment.

Strong Financial Performance

NEM Insurance Plc’s financial statement for the second quarter ended June 30, 2025, showed that the company recorded an insurance revenue of ₦75.41 billion, a significant rise from ₦45.47 billion posted in the corresponding quarter of 2024.

The report further revealed that NEM’s capital base far exceeded the Minimum Capital Requirement (MCR) in line with the Nigerian Insurance Industry Reform Act (NIIRA) 2025, positioning the company to thrive under the new capital regime expected to commence within the next 12 months.

The insurer’s Profit Before Tax (PBT) rose to ₦17.94 billion, up from ₦12.21 billion in the previous year, while Profit After Tax (PAT) increased to ₦15.48 billion, compared to ₦10.63 billion recorded in the same period of 2024.

NEM Insurance’s total assets stood at ₦159.90 billion as of June 30, 2025, compared to ₦121.93 billion as of December 31, 2024. Total liabilities rose to ₦83.97 billion, up from ₦56.49 billion, while equity increased to ₦75.93 billion from ₦65.44 billion.

Net cash inflow from operating activities was ₦8.78 billion, compared to ₦12.94 billion in the same period last year. Investing and financing activities recorded net cash outflows of ₦4.46 billion and ₦5.28 billion respectively, with cash and cash equivalents closing the quarter at ₦11.82 billion.

The company’s share capital remained at ₦5.02 billion, while the statutory contingency reserve increased to ₦18.75 billion. Retained earnings grew to ₦49.40 billion, and the asset revaluation reserve stayed at ₦2.79 billion.

Industry Overview

NAICOM disclosed that the total assets of the insurance industry rose to ₦4.4 trillion in Q2 2025, up from ₦2.3 trillion in the same period of 2024. A breakdown showed that Non-Life business accounted for ₦2.5 trillion, while Life business contributed ₦1.9 trillion.

The Non-Life segment maintained dominance, contributing 67.2% of the total premium pool, while Life insurance made up 32.8%. Within Non-Life, Oil & Gas remained the leading portfolio, contributing 31.2% of total premiums, followed by Fire Insurance (18.9%), Motor (15.8%), General Accident (8.9%), Miscellaneous (8.9%), Marine (8.8%), and Aviation (7.4%).

Industry Recognition

NEM Insurance Plc’s outstanding performance earned its Managing Director, Mr. Andrew Ikekhua, a place among Nigeria’s Top 25 Chief Executive Officers (CEOs), recognized at the BusinessDay Top 25 CEOs Awards held in Lagos.

The organisers commended Ikekhua and NEM Insurance for their resilience, innovation, and consistent growth, describing the company as a model of operational efficiency, strong customer trust, and corporate governance. They also highlighted NEM’s commitment to digital transformation and product diversification, which has strengthened its reputation as one of Nigeria’s most reliable insurers.

In his acceptance speech, Mr. Ikekhua dedicated the honour to the company’s dedicated team and to God, noting that NEM’s success story is driven by faith, hard work, and a shared vision of excellence.

Solid Fundamentals and Ratings

During the review period, Global Credit Rating (GCR), an affiliate of Moody’s Corporation, assigned NEM Insurance an “AA+ (NG)” credit rating with a Stable Outlook, reflecting its robust capital adequacy, prudent risk management, and sustained earnings capacity.

By year-end 2024, NEM Insurance’s total assets had exceeded ₦150 billion, while shareholders’ funds surpassed ₦75 billion, solidifying its leadership as the top listed insurance company on the Nigerian Exchange.

Beyond its strong financials, the company demonstrated operational reliability by fulfilling claims obligations of ₦24 billion to clients and paying out dividends exceeding ₦5 billion to shareholders — underscoring its balanced commitment to policyholder trust and investor value creation.

Through integrity-driven operations, sound corporate governance, and a consistent record of performance, NEM Insurance Plc continues to set the benchmark for insurance excellence in Nigeria — a reputation now firmly affirmed by its inclusion in the Top 25 CEOs Awards 2025.