NEM Mgt Expenses Drop To N3.7bn, Pays N7.6bn Claims

Just as the management of NEM Insurance Plc continues to be prudent without undermining efficiency, its management expenses shrank from N4.19billion in 2021 financial year to N3.7billion in 2022.

This is just as its Net Claims paid in 2022 was N7.6 billion, a 38 percentage increase from that of 2021 financial year which stood at N5.5billion even as its Net Claims ratio was 22% for the year under review and 19.9 per cent for 2021; an increase of 2.1 per cent.

However, the Gross Claims incurred during the year was N12.3billion; an increase of 7.9 per cent over that of the preceding period that was N11.6 billion while Gross Claims ratio for 2021 stood at 42 per cent whereas that of 2022 was 37.4 per cent, decreasing by 5%.

Moreover, the gross premium recorded in 2022 was N33.3billion, an increase of 20 per cent over the previous year’s turnover of N27.8billion. N22.1billion was earned in 2022 and N19.3 billion was earned in 2021 with Investment Income increasing by 37 per cent while the income for 2022 was N1.5billion and that of 2021 was N1.1billion.

Speaking at the company’s 53rd Annual General Meeting(AGM) in Lagos recently, the chairman, NEM Insurance Plc, Dr. Fidelis Ayebae disclosed that the position of the group’s financial assets increased by 32.6 per cent while Total Assets and Total Equity improved by 19.9 per cent and 18.7 per cent respectively.

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The parent company, he added, also had the same percentage increase in Financial Assets and total equity as the Total Assets increased by 20% with the group’ Earnings per Share (EPS) for the year under review was 1.08 while that of the previous year was 0.88; an increase of 0.28 per cent.

The board, he said, however, recommended a dividend of 30 kobo per N1 ordinary shares amounting to N1.5 billion, payable to shareholders subject to deduction of withholding tax at the appropriate rate.

On the insurer’s future prospects, he said, NEM Health Ltd was incorporated in 2022 and commenced operation in 2023 as part of strategy for expansion, while planning to have a viable life company.

While appreciating the GMD/CEO, management and members of staff, who have been so dedicated, hardworking and focused in achieving the set goals, he equally commended the commitment and cooperation of the board members.

My beloved shareholders who have been consistent in their zest to add to the growth of the company are greatly appreciated as well, he pointed out.

Earlier, the group managing director/CEO, Mr. Tope Smart said, notwithstanding the challenging operating environment, the company achieved the above results due to its determination and the robust strategies put in place.

To him, “it is also worth noting that these results would not have been achieved but for the massive support and loyalty of our clients and brokers who have been there for us over the years. We owe them a debt of gratitude. Our appreciation also goes to our Board for providing us with a very conducive environment and allowing us to benefit from their wealth of wisdom and experience which have been helpful at crucial times on this journey.

“ I want to assure you that with the robust structure, put in place, our Company is well-positioned for greatness.”