LAGOS — Underscoring its commitment to delivering sustainable investor returns despite deep-seated macroeconomic challenges, shareholders of NEM Insurance Plc have officially approved a final dividend of ₦1.50 per ordinary share for the 2025 financial year. The robust payout, which aggregates to approximately ₦7.52 billion, represents a massive 50% increase over the ₦1.00 per share distributed to equity holders during the preceding fiscal cycle.

The formal approval was granted by voice vote during the underwriting firm’s 56th Annual General Meeting (AGM) held on Thursday in Lagos. Presenting the operational scorecard to investors and regulatory bodies, the Group Chairman, Tope Smart, revealed that the company navigated severe local and international constraints to lock down premium market expansion and solidify its leadership position within the tier-one general insurance sector.

Deconstructing the Balance Sheet: Stellar Revenues vs. Currency Headwinds

A forensic audit of the group's financial statements revealed an impressive surge in top-line performance. NEM Insurance recorded a spectacular jump in its Gross Premium Income (GPI), which scaled to ₦166.8 billion in 2025 compared to the ₦110.7 billion managed in 2024. In the same vein, core insurance revenue enjoyed a 56% growth spike, climbing from ₦97.9 billion to ₦152.3 billion under the period reviewed, while strategic investment income surged by 70% to hit ₦12.9 billion.

"I am delighted to mention to you that our company performed excellently during the year under review," Chairman Smart stated to the clapping gallery of shareholders. "Our excellent and progressive performance is indeed commendable, reinforcing our market resilience."

However, the underwriting firm’s bottom-line indicators felt the immediate pressure of Nigeria’s ongoing currency restructuring and volatile foreign exchange dynamics. The group’s Profit After Tax (PAT) contracted to ₦24 billion, dropping from the ₦29 billion recorded in 2024, while Profit Before Tax (PBT) dipped 17% to ₦27.9 billion.

"Though profit after tax declined, this was due entirely to foreign exchange losses we experienced during the period," Smart explained clearly, noting that the underlying operational infrastructure of the firm remains completely sound.

Navigating a Volatile 2025 Macroeconomic Climate

The 2025 financial year proved to be highly turbulent for corporate entities across the West African corridor. While Nigeria’s Gross Domestic Product (GDP) showed mild improvement with a 3.90% growth rate, and headline inflation cooled down to 15.15% (a steep fall from the 34.8% peak witnessed in 2024), local logistics costs severely impacted profit margins.

The chairman pointed directly to global geopolitical shocks and domestic energy fluctuations as primary drivers of increased management expenses, which climbed 22% to ₦10.4 billion, alongside a rise in claims expenses to ₦49.8 billion.

"We continue to experience the structural impact of the ongoing war in the Middle East, which accounted for the recent additional increase in international oil prices and its subsequent trickle-down effect on goods and services," Smart observed. "Presently, domestic fuel pump prices fluctuate heavily between ₦1,250 and ₦1,400 across various locations, raising haulage and operational costs."

Despite these structural headwinds, the group successfully boosted its foundational wealth metrics, with total assets expanding by 49.8% and total equity growing by 29% by the close of the December 31, 2025 financial calendar.

Diversification Horizon: Life Insurance Subsidiary Loading

Looking beyond the 2026 operational year, NEM Insurance is actively deploying capital to capture a wider market share within the continental insurance ecosystem. Smart dropped a major corporate hint regarding the company’s advanced plans to transcend its traditional general insurance box and establish a fully capitalized life assurance subsidiary.

"As a core part of our long-term market expansion strategy, our operational plan to set up a viable life assurance company is highly in progress and will be officially unveiled to the public soon," the Chairman disclosed to enthusiastic investors.

Smart attributed the year’s corporate victories to the tight operational synergy between the board, management executive teams, and the workforce. He noted that the company heavily prioritized capacity building, ensuring that 98% of the corporate staff underwent specialized technical and customer-centric training during the fiscal year. He expressed absolute confidence that this trend of excellent financial performance would be sustained throughout 2026, provided regulatory and security frameworks across the nation continue to stabilize.