FX Losses Cut NEM Insurance’s Profit Amid N7.5bn Dividend

NEM Insurance Plc has attributed the decline in its profit after tax for the 2025 financial year to foreign exchange losses, despite recording significant growth in premium income and approving a dividend payout of N7.525 billion for shareholders.

Speaking at the company’s 56th Annual General Meeting held in Lagos, the Group Chairman, Tope Smart, said the insurer remained financially strong and optimistic about future expansion plans.

Shareholders approved a dividend of N1.50 per share, amounting to N7.525 billion for the year ended December 31, 2025.

Smart disclosed that the company’s gross premium income rose significantly to N166.8 billion, with the parent company contributing N157.8 billion, compared with N110.7 billion and N108.3 billion respectively recorded in the previous year.

He, however, noted that profit after tax declined from N29 billion in 2024 to N24 billion in 2025 due to foreign exchange-related losses experienced during the fiscal year.

According to him, “our plan to establish a robust life assurance company is underway and will be introduced soon as part of our broader expansion strategy.”

The chairman also expressed confidence in Nigeria’s economic outlook, noting improvements in the country’s global economic ranking and growth performance.

He stated that Nigeria had advanced to become the world’s 52nd largest economy by nominal GDP from 53rd position previously, while also improving from sixth to fourth largest economy in Africa.

Smart added that the country’s GDP growth rate increased to 3.9 per cent in 2025 from 3.4 per cent in 2024, while the non-oil sector accounted for about 97.13 per cent of GDP in the fourth quarter of 2025.

He stressed that the non-oil sector remains critical to Nigeria’s economic recovery and sustained growth, highlighting agriculture as a major driver of food security and long-term economic sustainability.

He called for enhanced government action at all levels to further stimulate local production and address unemployment, advocating for measures that will strengthen the economy and improve job creation.

Despite the challenges faced, he said, the company has upheld its leadership position in the general business sector.

Smart noted that “this trend of excellent performance is expected to be sustained with the right form of support from all stakeholders, expectations from the government at all levels and other concerned parties to improve the security architecture in our country, tackle unemployment, diversify the economy, enhance climate resilience, and boost the living standard of citizens.”