The insurer’s 2025 claims record offers a useful signal in an industry where credibility is measured less by premium income and more by the speed, scale and consistency of claims settlement.

NEM Insurance Plc paid ₦41.46 billion in gross claims across its business lines for the financial year ended December 31, 2025, underscoring its claims-paying capacity and strengthening its position within Nigeria’s non-life insurance market.

The figure, contained in the company’s audited annual report submitted to the Nigerian Exchange Group, represents a significant rise from the ₦24.24 billion paid by the parent company in 2024.

For an insurance industry still battling public scepticism and low penetration, the scale of NEM’s claims payment is important. Insurance is ultimately a promise. Premiums create the balance sheet, but claims settlement creates trust. In a market where many consumers still question whether insurers will respond when losses occur, a strong claims record remains one of the most powerful reputation assets available to any underwriting institution.

According to the audited financial statements, the motor insurance segment accounted for the highest claims payout, with ₦13.00 billion paid during the year. This was followed by fire insurance, which recorded ₦9.04 billion in claims, while the oil and gas segment accounted for ₦7.01 billion.

The general accident class also posted a notable payout of ₦6.73 billion, while marine insurance claims stood at ₦3.77 billion. The engineering portfolio recorded claims of ₦1.64 billion.

Other business lines recorded lower claims volumes. Agriculture insurance accounted for ₦152.21 million, while bond insurance recorded ₦110.03 million in claims.

The distribution of claims reflects the risk structure of Nigeria’s commercial economy. Motor insurance remains a high-frequency class because of the size of the vehicle market, road risks, logistics activity and compulsory insurance requirements. Fire, oil and gas, general accident, marine and engineering claims point to the deeper link between insurance and the real economy — factories, homes, energy assets, cargo, construction projects and commercial operations.

NEM said it remains strategically positioned to deliver sustainable value to shareholders and policyholders, supported by a strong capital base, an expanding customer network and rising investment income.

The company described its performance as further evidence of financial stability, operational reliability and strong claims-paying ability — all critical measures in the insurance business.

Its profile was also strengthened by a rating action from GCR Ratings, which upgraded NEM Insurance’s national scale financial strength rating to AA+(NG) from AA(NG), with a stable outlook. The agency said the upgrade reflected the company’s stronger competitive position in the non-life insurance market, supported by robust risk-adjusted capitalisation, adequate liquidity and strong earnings capacity.

For investors, this matters. Strong claims payment can pressure underwriting margins in the short term, but it can also reinforce franchise value over the long term. Insurers that pay claims consistently build policyholder trust, broker confidence and institutional credibility. In a market moving toward stronger regulation, higher capital expectations and improved consumer protection, those advantages could become increasingly valuable.

BRANDECONOMY Insight

Claims Payment Is the Real Currency of Insurance Trust

NEM Insurance’s ₦41.46 billion claims payout is more than a line item in an annual report. It is a trust statement.

Nigeria’s insurance sector has long struggled with a credibility gap. Many individuals and businesses still view insurance as a grudge purchase, partly because of historical concerns around delayed or disputed claims. That is why claims settlement remains the most important test of an insurer’s brand promise.

NEM’s 2025 payout shows that claims obligations are rising in a more complex and risk-sensitive economy. Motor, fire, oil and gas, marine and engineering risks all speak to the pressures facing households, transport operators, manufacturers, energy firms, contractors and commercial enterprises.

For the insurance industry, the lesson is clear: penetration will not deepen through marketing alone. It will deepen when policyholders see evidence that insurance works.

The upgrade to AA+(NG) further strengthens NEM’s investment case. In insurance, capital strength, liquidity and claims reliability are inseparable. A company that can absorb risk, pay legitimate claims and maintain earnings strength is better positioned to win both customers and investor confidence.

The wider implication is positive for Nigeria’s financial system. A credible insurance industry reduces economic vulnerability, protects assets, supports credit, strengthens business continuity and mobilises long-term capital. But the sector must continue to improve transparency, simplify claims processes and educate customers.

Insurance becomes meaningful only when the promise is honoured. NEM’s 2025 claims record is therefore a useful signal for a market still trying to convert scepticism into confidence.