NEM Insurance Jumps by 21% on Good Earnings Forecast
NEM Insurance Plc gained about 21% as the company’s earnings forecast attracted buying interest from investors. The insurance company saw its share price climb to N6.65 over a week from N5.50, an increase of 21.9% week on week.
The gain lifted the insurer’s market valuation to N33.36 billion, details from the Nigerian bourse revealed. NEM Insurance is expecting its profit to settle at N8.288 billion at the end of the first half of the financial year 2024.
The financial services company stated that its revenue from insurance services is expected to reach N39.96 billion at the end of June 2024. The management forecast insurance service expenses to come in at N24.62 billion, in addition to net expenses on reinsurance contracts estimated to print at more than N2.8 billion in the same period.
NEM expects insurance service results for the period to settle at N12.537 billion in its first six months of operations in the financial year 2024.
As part of its operational income, interest revenue is estimated to reach N1.425 billion, in addition to N128 million gain from FX revaluation. The insurer also expects $14 million in gains from asset disposal.
Its other income line is expected to contribute more than N50 million to the company’s bottom line at the end of June. NEM Insurance forecasted that its other operating expenses would total about N4.8 billion in the period.
Finance costs are expected to be above N94 million, and allowances for credit losses are projected to settle at N82 million. The total assets of the insurance company is projected to be about N73.5 billion. NEM Insurance expects its total equities to settle at N48.5 billion. #NEM Insurance Jumps by 21% on Good Earnings Forecast Foreign Investors Boost Interest in Nigeria US Dollar Bonds
