From left: Director, NEM Insurance Plc, Mrs. Joy Teluwo; Group Managing Director/CEO, Tope Smart; Chairman Board, Dr. Fidelis Ayebae, and Executive Director, Marketing, Andrew Ikekhua at the event in Lagos.
* Pays dividend of 9 kobo per ordinary share
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Chuks Udo Okonta
NEM Insurance generated a gross premium of N22 billion in 2020 as against N19.8 billion generated in the preceding year 2019; an increase of 12 per cent, its Chairman, Dr. Fidelis Ayebae, has said.
He disclosed this at the firm’s 51st Annual General Meeting (AGM) in Lagos, adding that the company’s net premium earned during the period under review was N15.8 billion and 25 per cent increase over the preceding period of 2019 which recorded N12.6 billion.
According to him, though the interest rate in commercial paper crashed, the company’s management was proactive enough to take advantage of other investment opportunities to generate an income on investment of N1.004 billion as against the previous income on investment in 2019 which was N878.2 million, which resulted in increase of about 14.3 per cent.
Ayebae posited that a gross claims of N8.4 billion was incurred in 2020, while that of 2019 was N7.3 billion; an increase of 15 per cent.
In the same vein, the Net Claims expenses of N6.05 billion incurred in 2020 was 53 per cent higher than that of the preceding period which recorded N3.9billion and net claims ratio for the period under review was 27 per cent as against that of 2019 that was 21 per cent he submitted.
He remarked that while the group’s Profit After Tax (PAT) for the preceding period was N2.4 billion, the sum of N5.08 billion was recorded in the reporting period; an increase of 112 per cent, adding that the Parent Company also recorded an increase of 113 per cent PAT over the preceding period. That is, N2.4 billion was generated in 2019 against N5.08billion in 2020.
He said there were increases of N5.9billion, N5.5billion and N4.2billion in the Group’s Financial Assets, Total Assets and Total Equity respectively, while the Parent Company had increases of N5.9billion; N5.5billion and N4.3billion in Financial Assets, Total Assets and Total Equity respectively.
The Group’s EPS for the year under review was 0.96 kobo while that of the previous year was 45 kobo, he said.
He stressed that during the period under review, over 55 per cent of the firm’s employees attended various online trainingsto enhance job performance, adding that the company adapted to online trainings in response to the restrictions on physical gathering. due to the pandemic.
Shareholders at the event.
The Group Managing Director, Tope Smart, said the firm’s profit during the period grew significantly from N2.4billion to N5.1billion, a growth of 112 per cent and he expressed gratitude to all brokers and clients for their unalloyed support over the years.
“To our board members, words are not enough to express our appreciation to you for creating the right environment which assisted us in delivering value to all stakeholders. We are grateful.
I want to equally thank all our staff who in the midst of difficulty, brought about by COVID-19 have remained undaunted and have continued to deliver superior services to our numerous brokers and clients,” he said.
Smart also thanked the firm’s shareholders for keeping faith with the the company.
