NEM

NEM Insurance Plc is a high-quality Nigerian non-life insurer delivering a 25.5% ROE (our independent cross-check: 31.1%) on a ₦99.3bn equity base, with PAT of ₦23.9bn and revenue of ₦136.2bn for the period ending September 2026, demonstrating compounding earnings power across the cycle. However, at ₦30.45 the stock trades at 6.34x P/E and 1.62x P/B — materially above all three valuation method fair values (bear ₦15.63, base ₦22.64, bull ₦32.96) and 25.7% above the blended base case — meaning current holders own quality at a full price with limited near-term margin of safety. The stock is a hold, not a sell, because the franchise quality is genuine and the valuation gap, while real, does not yet reflect deteriorating fundamentals.

Verdict published 2026-08-18 · fundamentals through FY2025 · reviewed as the data changes