Insurance

NEM Insurance posts N19.8bn gross premium in 2019

From left: Group Managing Director/CEO, NEM Insurance Plc, Tope Smart; Chairman Board, Dr. Fidelis Ayebae, and Company Secretary, Mrs. Olajumoke Philip-Akede, during the 50th Annual General Meeting of NEM Insurance Plc held in Lagos on Thursday 18/6/2020.

*Pays 15 kobo dividend per 50 kobo ordinary shares

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Chuks Udo Okonta

NEM Insurance Plc., posted a gross premium of N19.8 billion in 2019 as against N15.04 billion generated in the preceding year 2018; an increase of 31.3 per cent, its Chairman, Dr. Fidelis Ayebae, has said.

He disclosed this at the 50th Annual General Meeting (AGM) of the company in Lagos, adding that the firm’s net premium earned during the period under review was N12.6 billion, 18 per cent increase over the preceding period of 2018 which recorded N10.7 billion.

He noted that gross claims of N7.4 billion was incurred in 2019 and that of 2018 was N6.01 billion; an increase of 22.7 per cent, stressing that even at this, the gross claims ratio was 2.7 per cent lower than that of the previous period of 2018, while the ratio for 2019 was 37.3 per cent and that of 2018 was 40 per cent.

From left: Deputy Managing Director, NEM Insurance Plc, Mrs. Susan Giwa-Osagie; Group Managing Director/CEO, Tope Smart, and Chairman Board, Dr. Fidelis Ayebae, during the 50th Annual General Meeting of NEM Insurance Plc held in Lagos on Thursday 18/6/2020.

“In the same vain, the Net Claims expenses of N3.9 billion incurred in 2019 was 54.1 per cent higher than that of the preceding period which recorded N2.6 billion. The Net Claims ratio for the period under review was 31.2 per cent as against that of 2018 that was 23.9 per cent, an increase of 7.3 per cent.

“The Group incurred the sum of N3.5 billion; an increase of 25.1 per cent over that of 2018 which was N2.8 billion.

“The Parent Company also incurred an increase of 25.3% over that of the previous period of 2018. Specifically, while N3.5 billion was incurred in 2019, N2.8 billion was incurred in 2018,” he said.

Ayebae maintained that while the Group’s Profit After Tax (PAT) for the preceding period was N2.04 billion, the sum of N2.4 billion was recorded in the reporting period; an increase of 17.6 per cent, adding that the parent company also recorded an increase of 17.7 per cent PAT over the preceding period and that is, N2.38 billion was generated in 2019 against N2.02 billion in 2018.

“There were increases of N1.08 billion, N3.25 billion and N1.67 billion in the Group’s Financial Assets, Total assets and Total Equity respectively.
Also, the Parent Company had increases of N1.08 billion; N3.23 billion and N1.66 billion in Financial Assets, Total assets and Total Equity respectively.

“The Group’s EPS for the year under review was 45 kobo while that of the previous year was 39 kobo; an increase of 17.6 per cent.

“The Parent Company’s EPS for the year under review was 45 kobo compared to 38 kobo in the preceding year, an increase of 17.7 per cent,” he said.

He posited that the firm will pay a dividend of 15 kobo per 50 kobo ordinary shares.

According to him, during the period under review, over 92 per cent of the firm’s employees were sent on various local and international trainings to enhance their performance.

He noted that all necessary work tools were provided for staff along with a conducive environment with a further motivation of promotions for deserving staff who performed excellently well during the year and that in addition to this, quarterly awards were given to best staff in each department. Inclusive also, was the annual awards to staff in various areas of performances.

From left: Deputy Managing Director, NEM Insurance Plc, Mrs. Susan Giwa-Osagie; Group Managing Director/CEO, Tope Smart; Chairman Board, Dr. Fidelis Ayebae; Company Secretary, Mrs. Olajumoke Philip-Akede, and a Director, Chief Ede Dafinone, during the 50th Annual General Meeting of NEM Insurance Plc held in Lagos on Thursday 18/6/2020.

The Group Managing Director of the firm, Tope smart, said the company’s shareholders’ fund also increased from N12.4billion in 2018 to N14.1billion in 2019, stressing that the huge claims paid during the period had a negative impact on the firm’s bottom line as profit before tax came down from N2.6billion to N1.9billion, a decrease of 29 per cent.

“However, profit after tax increased from N2billion to N2.4billion, an increase of 18 per cent due to deferred tax asset. From our associate in Ghana, we achieved a 1 per cent increase in profit from N21.2million in 2018 to N21.4milliom in 2019. We are confident of improving on this next year,” he added.

To our highly esteemed brokers and clients who have entrusted us with their businesses, I say a big thank you to all of you, he said.

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