company background image

NEM InsuranceNGSE:NEM Stock Report

Market Cap







16 Oct, 2021


Company Financials
NEM fundamental analysis
Snowflake Score
Future Growth0/6
Past Performance6/6
Financial Health5/6

NEM Overview

NEM Insurance Plc provides general insurance products and services to corporate and individual customers in Nigeria.

Price History & Performance

Summary of all time highs, changes and price drops for NEM Insurance
Historical stock prices
Current Share Price₦1.93
52 Week High₦1.07
52 Week Low₦2.69
1 Month Change0%
3 Month Change-3.50%
1 Year Change83.35%
3 Year Change24.31%
5 Year Change336.55%
Change since IPO501.15%

Recent News & Updates

Shareholder Returns

NEMNG InsuranceNG Market

Return vs Industry: NEM exceeded the NG Insurance industry which returned 26.8% over the past year.

Return vs Market: NEM exceeded the NG Market which returned 40.1% over the past year.

Price Volatility

Is NEM's price volatile compared to industry and market?
NEM volatility
NEM Beta0.11
Industry Beta0.70
Market Beta1

Stable Share Price: NEM is not significantly more volatile than the rest of NG stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NEM's weekly volatility (5%) has been stable over the past year.

About the Company

1948206Tope Smart

NEM Insurance Plc provides general insurance products and services to corporate and individual customers in Nigeria. It offers corporate insurance products, such as motor, marine, aviation, oil and gas, engineering, computer and electronics, fidelity guarantee, and group personal accident insurance; personal insurance products, including goods in transit, fire and special perils, travel, motor, home protection, professional indemnity, and enhanced motor third party insurance; and SME products comprising burglary, product liability, cash in transit, and agricultural insurance. It is also involved in asset leasing and LPO financing activities.

NEM Insurance Fundamentals Summary

How do NEM Insurance's earnings and revenue compare to its market cap?
NEM fundamental statistics
Market Cap₦19.36b
Earnings (TTM)₦5.08b
Revenue (TTM)₦19.21b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NEM income statement (TTM)
Cost of Revenue₦10.53b
Gross Profit₦8.68b

Last Reported Earnings

Dec 31, 2020

Next Earnings Date


Earnings per share (EPS)0.51
Gross Margin45.17%
Net Profit Margin26.47%
Debt/Equity Ratio0%

How did NEM perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio


Is NEM Insurance undervalued compared to its fair value and its price relative to the market?


Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: NEM (NGN1.93) is trading above our estimate of fair value (NGN1.09)

Significantly Below Fair Value: NEM is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: NEM is good value based on its PE Ratio (3.8x) compared to the NG Insurance industry average (5.1x).

PE vs Market: NEM is good value based on its PE Ratio (3.8x) compared to the NG market (7.5x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NEM's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: NEM is overvalued based on its PB Ratio (1.1x) compared to the NG Insurance industry average (0.5x).

Future Growth

How is NEM Insurance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?


Forecasted Insurance industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as NEM Insurance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has NEM Insurance performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NEM has high quality earnings.

Growing Profit Margin: NEM's current net profit margins (26.5%) are higher than last year (16.1%).

Past Earnings Growth Analysis

Earnings Trend: NEM's earnings have grown significantly by 26.4% per year over the past 5 years.

Accelerating Growth: NEM's earnings growth over the past year (111.6%) exceeds its 5-year average (26.4% per year).

Earnings vs Industry: NEM earnings growth over the past year (111.6%) exceeded the Insurance industry 3.1%.

Return on Equity

High ROE: NEM's Return on Equity (27.7%) is considered high.

Financial Health

How is NEM Insurance's financial position?

Financial Position Analysis

Short Term Liabilities: NEM's short term assets (NGN10.1B) do not cover its short term liabilities (NGN12.8B).

Long Term Liabilities: NEM's short term assets (NGN10.1B) exceed its long term liabilities (NGN79.0M).

Debt to Equity History and Analysis

Debt Level: NEM is debt free.

Reducing Debt: NEM had no debt 5 years ago.

Debt Coverage: NEM has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NEM has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet


What is NEM Insurance current dividend yield, its reliability and sustainability?


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NEM's dividend (4.66%) is higher than the bottom 25% of dividend payers in the NG market (3.3%).

High Dividend: NEM's dividend (4.66%) is low compared to the top 25% of dividend payers in the NG market (7.31%).

Stability and Growth of Payments

Stable Dividend: NEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: NEM's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.8%), NEM's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.

Next Steps


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Tope Smart



Mr. Tope Smart, B.Sc (HONS), ACII, MBA, is Group Managing Director,Chief Executive Officer and Director at NEM Insurance Plc. He is a seasoned Underwriter and Marketer, he started his Insurance Career with...

Leadership Team

Experienced Management: NEM's management team is seasoned and experienced (7.8 years average tenure).

Board Members

Experienced Board: NEM's board of directors are considered experienced (4.8 years average tenure).


Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Company Information

NEM Insurance Plc's employee growth, exchange listings and data sources

Key Information

  • Name: NEM Insurance Plc
  • Ticker: NEM
  • Exchange: NGSE
  • Founded: 1948
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: ₦19.364b
  • Shares outstanding: 10.03b
  • Website:

Number of Employees


  • NEM Insurance Plc
  • NEM House
  • 199, Ikorodu Road
  • Lagos
  • Nigeria


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 15:21
End of Day Share Price2021/10/15 00:00
Annual Earnings2020/12/31

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.