Insurance

NEM Insurance delights shareholders with N686.46m dividends

Shareholders at the event

* pays 13 kobo per 50 kobo ordinary shares

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Chuks Udo Okonta

NEM Insurance Plc has appropriated N686, 465,379 as dividends payable at 13 kobo per 50 kobo ordinary shares for its shareholders.

The Chairman of the underwriting firm, DR. Fidelis Ayebae, disclosed this yesterday at the company’s Annual General Meeting (AGM) in Lagos, noting that the payment is subject to deduction of withholding tax at the appropriate rate.

He posited that the firm recorded a gross premium of N15.04 billion, an increase of 12.2 per cent over the previous year’s turnover of N13.4 billion an increase of 9.1 per cent, stressing that an increase of 34.2 per cent was achieved on investment income, as the income for 2018 was N952.8 million that of 2017 was N709.9 million.

On claims paid, he said the gross claims incurred during the year was N6.01 billion; an increase of 20.0 per cent over that of the preceding period that was N5.01 billion and that the gross claims ratio for 2018 stood at 40.0 per cent whereas that of 2017 was 37.4 per cent, an increase of 2.6 per cent.

Net claims paid for the year was N2.6 billion, while that of the previous year wasN1.8 billion; resulting into an increase of 43.2 per cent. The Net Claims ratio was 23.9 per cent for the year under review and 18.2 per cent for 2017; an increase of 5.7 per cent, he said.

Group Managing Director, NEM Insurance Plc, Tope Smart, Chairman, DR. Fidelis Ayebae and Company Secretary, Olajumoke Philip-Akede at the event.

He maintained that the board during the year under review supervised the management’s efficiency that brought about a reduction in the management expenses from N2.9 billion in 2017 to N2.8 billion in 2018

According to him, the Group’s Profits Before Tax (PBT) for the year under review was N2.69 billion and N3.09 billion in 2017, a decrease of 13.2 per cent, while the Parent Company’s PBT was N2.67 billion for 2018 and N3.08 billion for 2017 a decrease of 13.4 per cent.

“The positions of the Group’s Financial Assets decreased by 39.1 per cent while Total Assets and Total Equity improved by 27.7 per cent and 27.6 per cent respectively.
The Parent Company also had the same percentage decrease in Financial Assets as that of the Group i.e. 39.1 per cent. The Total Assets and Total Equity increased by the same percentage i.e. 27.4 per cent.

“The Group’s EPS for the year under review was 39 kobo while that of the previous year was 53 kobo; a decrease of 26.6 per cent.
The Parent Company’s EPS for 2018 was 38 kobo while that of the preceding year was 52 kobo; a decrease of 26.9 per cent,” he said.

The Chairman noted that in line with the company’s policy of ensuring enhancement of the knowledge of members of staff and improving their skills on the job, the management sent over 90 per cent of the staff on various trainings, workshops and conferences during the year under review. Good work tools and working environment were also provided to enable better performances. Also, deserving, members of staff were promoted during the year, he added.

On future prospects, he noted that the company shall proactively begin to prepare to raise fund for increase of its issued share.

From left: Directors, NEM Insurance Plc, Ahmed Mrs. S.A. GIBA-Osagie and Group Managing Director, Tope Smart at the event.

The Group Managing Director, Tope Smart, stressed that despite the difficult operating environment the company has maintained its focus as it continued to increase her market share, adding that from about five per cent market share, the firm now control close to seven market share of non life business and that it is determined to improve on this figure.

“Our associate in Ghana Regency Nem Insurance is expanding its operations into the major areas in Ghana. This will lead to more income for the company and ultimately impact its bottom line in the nearest future.

“We are committed and determined to improve on these results in the years ahead. With respect to our subsidiary in Ghana, claims paid increased significantly and this impacted negatively on the bottom line.

“As a result of this, Profit from this Associate declined fromN100million in 2017 to N21million in 2018, a decrease of 376%. We are hopeful of reversing this trend in the years ahead,” he said.

He appreciated the firm’s board for their unrelenting support. “My debt of gratitude equally goes to all our brokers, and clients for their unalloyed support. Their support have been quite overwhelming. Our members of staff have shown unwavering commitment to our vision. I say a big thank you to all of you. Above all, all the glory to Almighty God for being the pillar of our success,” he added.

He maintained that the firm is set for new heights, adding that with a strong reputation built over the years, coupled with a very strong brand in the insurance industry and robust financials, the future of the company looks very exciting and the staff are determined to take advantage of the opportunities they have to take the company to the next level.

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