NEM Insurance Plc is one of the oldest and most reliable names in Nigeria’s insurance sector. The company began operations way back in 1948 and has been listed on the Nigerian Exchange (NGX) since 1989.
It focuses mainly on non-life insurance, which means it provides cover for things like motor vehicles, fire, aviation, marine, oil & gas, general accidents, and agriculture. In addition, it runs a subsidiary called NEM Health, which provides health insurance services.
NEM is widely recognized as one of the biggest motor insurers in Nigeria and also takes on significant corporate risks in oil and gas. For both individuals and companies, it has become a go-to insurer across the country.
2) Current Market Snapshot
Latest share price: ₦26.60 (up ₦0.50 or +1.92% as of today’s close) — Investing.com
Year-to-date (YTD) gain: +156% (price started 2025 at ₦10.95) — AFX / Investing.com
Market capitalization: About ₦140 billion, with around 5 billion shares outstanding — AFX / Investing.com
What this means: NEM’s stock has had a fantastic year, more than doubling in value. Earlier in August, it even touched highs close to ₦39, but since then it has pulled back and is now sitting in the mid-20s. Importantly, it is still holding far above its January levels, showing how strong the overall uptrend has been.
3) Technical Overview
Earlier in the year, NEM’s share price moved almost vertically, shooting upwards. But recently, it has slowed down and is now trading sideways within a range.
Long-term view: Still bullish as long as the stock stays above earlier support zones.
Short-term view: Neutral to slightly bullish — it’s consolidating, which means the stock is “resting” after a big move before deciding the next direction.
4) Market Structure & Liquidity (Smart-Money Insights)
When we look at the price zones where “big money” (institutional or professional investors) might be active:
Upside targets: ₦30–₦33 (recent breakdown area) and ₦36–₦38 (August highs).
Downside supports: ₦24–₦25, with a stronger support further down at ₦22–₦23.
This suggests that smaller retail investors who chased the rally may have already sold. If we start seeing strong buying volume again, it could mean bigger investors are stepping back in.
5) Chart Patterns
The stock is forming what traders call a rectangle or flag pattern — essentially moving sideways after a strong upward run.
Bullish signal: A daily close above ₦30–₦31 with strong volume would suggest buyers are back in charge.
Bearish risk: If the stock falls below ₦24–₦25, it may slip further into the low 20s.
6) Wave Perspective (Elliott Insight)
From a wave analysis angle:
The big January–August rise looks like a strong Wave 3 (the most powerful move in Elliott Wave theory).
Right now, it seems to be in Wave 4 consolidation (a pause).
If it breaks above ₦33 (and more convincingly above ₦38), that could trigger Wave 5, which is another upward leg.
But if the stock consistently trades below ₦22, then the bullish wave pattern would be invalidated.
7) Fundamentals
NEM’s financial performance is just as strong as its share price movement:
H1-2025 Results:
Gross earnings: ₦84.24 bn (+75.6% YoY)
Net profit: ₦15.48 bn (vs ₦10.63 bn last year) — MarketScreener
Total assets: ₦160 bn (US$1.07 bn) — MarketScreener
Valuation multiples (TTM):
Market cap: ₦131 bn
Revenue: ₦104 bn
Net income: ₦34 bn
P/E ratio: 3.8× (cheap compared to global insurers)
P/S ratio: 1.3× — Simply Wall St
This shows NEM is not only growing rapidly but also still looks relatively inexpensive when compared to many global insurance peers. However, investors must remember insurance companies can face sudden swings depending on claims and reinsurance costs.
8) Catalysts to Watch
Things that could drive the stock up or down in the coming months:
Q3-2025 financial results
Any major claims or reinsurance hits (for example, from natural disasters or accidents)
New regulations from NAICOM (Nigeria’s insurance regulator)
Dividend announcements later in the year
Insurance stocks often react strongly to earnings and regulatory updates, so traders should stay alert around these events.
9) Trade Plan (Long-Only – NGN)
Because the NGX does not allow retail investors to short-sell, the plan here is focused on long-only strategies:
A) Core Swing Trade
Buy zone: ₦24.50 – ₦26.50
Add-on trigger: Daily close above ₦30.50 with strong buying volume
Stop-loss: ₦21.90
Profit targets:
TP1: ₦30 – ₦31.50
TP2: ₦35.50 – ₦38.00
TP3: ₦42 – ₦45 (if second-half results are strong)
B) Buy-the-Dip (Value Entry)
Entry: ₦22 – ₦23.50 on strong rejection wicks (meaning buyers defend this level)
Stop-loss: ₦20.50
Target: ₦28.50 → ₦33, then trail upwards
Risk Management:
Take partial profits at each target.
Reduce exposure around earnings or regulatory announcements.
Conclusion & Quick Checklist
NEM Insurance has been one of the top-performing Nigerian stocks of 2025, thanks to strong business results and bullish market sentiment. The recent pullback seems healthy, offering opportunities for careful long-term investors.
Bullish case: A break above ₦30–₦31 could restart the rally.
Bearish case: A drop below ₦22 would warn of deeper weakness.
Checklist before taking any trade:
Confirm live market price and trading volume on your platform.
Check the latest quarterly report for claim ratios and investment income.
Keep an eye on NAICOM updates and dividend declarations.
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Note: This analysis does not constitute financial advice. It is based on publicly available data and provided for educational purposes only. You are welcome to share your views on this post, as this is an open public discussion forum.
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