Prime Business AfricaNEM Insurance reported its revenue for the first quarter (Q1) of 2025 was N46.05 billion, surpassing the N29.03 billion generated in Q1 2024, indicating an increase of 58.63 percent.
However, the increase was overshadowed by the 61.65 percent recorded in insurance service expenses, which grew to N22.46 billion in Q1 2025, from N13.89 billion posted in the same period last year.
Join our WhatsApp ChannelAlso, its net expenses on reinsurance contracts rose threefold or 257.10 percent year-on-year, from N2.21 billion to N7.89 billion, leaving the company with N15.69 billion insurance service result in Q1 2025, compared to the N12.92 billion filed in Q1 2024, reflecting a 21.43 percent increase.
But net investment result increased by 257.09 percent to N2.09 billion in the first quarter of this year, exceeding the N585.67 million reported in the corresponding period in 2024.
Furthermore, NEM’s insurance finance expenses from insurance contracts issued between January and March 2025 were N578.21 million, against the zero recorded in the first quarter last year.
Similarly, NEM’s reported N401.38 million insurance finance expenses from insurance contracts issued, but in Q1 of the year before, the company reported zero for the period.
During the period under review, NEM also posted N17.60 billion net insurance and investment result, compared to the N13.50 billion registered in Q1 2024, reflecting an increase of 30.34 percent.
However, its impressive earnings were dented by the 82.56 percent year-on-year decline in other operating income, which decreased to N490,000 from N2.81 million.
Nevertheless, NEM Insurance was able to pull a 25.44 percent increase in profit before tax, which was N14.85 billion in the first quarter of this year, compared to last year’s Q1’s N11.84 billion.
But this was reduced by a N2.03 billion income tax in Q1 2025, compared to the N1.30 billion taxation filed during the same period in 2024.
The 56.23 percent increase in income tax left NEM Insurance with N12.82 billion profit after tax (PAT), which increased by 21.63 percent, considering the company recorded PAT of N10.54 billion in Q1 2024.
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