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Chuks Udo Okonta
NEM Insurance Plc has reiterated that as part of its expansion strategy, the plan to set up a viable life assurance company is in progress, even as the firm’s revenue grew from N31.4 billion in 2022 to N52.1billion in 2023, an increase of 66 per cent.
Its Group Chairman Tope Smart, said this at the 54th Annual General Meeting (AGM) in Lagos, noting that the on the investment income, an increase of 106 per cent was achieved relative to 2022.
He told the company’s shareholders that that board has allotted a dividend of 60 kobo per N1 ordinary shares amounting to N3,009,886,660.20.
Smart said the total investment income in 2022 was N1.6b while that of 2023 was N3.3 billion, adding that the claims paid during the year was N15.7 billion as against N12.3 billion in 2022; an increase of 28 per cent over that of the preceding year.
The claims ratio for 2023, he he submitted was 30 per cent while that of 2022 was 40 per cent, a decrease of 25 per cent.
He noted that management expenses increased from N3.7 billion in 2022 to N5.3 billion in 2023, 43 per cent, stressing that the increase was due to the impact of inflation and business growth during the year under review.
On regulatory guidelines and
standard implementation. he submitted that as part of global business ethics, standards and best practices continue to evolve, adding that Nigerian insurance companies are transiting to the International Financial Reporting Standard (IFRS) principles for reporting insurance contracts.
He said the adoption of IFRS 17 was part of measures to improve reporting practices, transparency, comparability, and disclosures in line with international best practices.
IFRS 17 is effective for the annual reporting period beginning from 1st January 2023, he posited
“NEM Insurance Plc is a leading insurance provider in Nigeria, offering all forms of general insurance products with a history of successful financial reporting under previous accounting
standards, the company realized the importance of embracing IFRS 17 as well as the directives from regulatory authorities and adopted IFRS 17 in presenting its 2023 financials.
“This required significant changes to the actuarial models, processes
and accounting treatment which was quite tasking, time-consuming and resource intensive.
“As part of regulatory compliance also, we have complied with the Security & Exchange Commission’s directive on Internal Control Over Financial Reporting (ICFR).Profit for the year,” he posited.
The NEM Group Chairman maintained that the group’s Profit Before Tax
(PBT) for the year under review was N18.9 billion and N5.5 billion in 2023 and 2022 respectively, an increase of 244 per cent.
The Parent Company’s PBT was N19.2 billion for 2023 and N5.5 billion for 2022, an increase of 249 per cent, he stated.
Smart posited that the position of the group financial assets between 2022 and 2023 increased by 160 per cent while total assets and total equity also improved by 68 per cent and 43 per cent
respectively.
The Group’s EPS for the year under review was 260k while that of the previous year was 108k, he said, while the parent company’s EPS for 2023 was 264k against the preceding year of 108k.
Shareholders applauded the firm for the outstanding performance and for sustaining its dividends payout.
