The Gross Premium Income of NEM Insurance Plc rose by 12.2 per cent to N15.04 billion in its 2018 financial year from N13.4 billion it posted in its 2017 financial year.
Speaking at the 2018 Annual General Meeting (AGM) of the company in Lagos last week, its chairman, Dr. Fidelis Ayebae, noted that, its Investment Income increased by 34.2 per cent from N952.8 million to N709.9 million within the year under review.
He disclosed that the Gross Claims incurred during the year was N6.01 billion; an increase of 20 per cent over that of the preceding period that was N5.01 billion.
The Gross Claims ratio for 2018, he said, stood at 40 per cent whereas that of 2017 was 37.4 per cent, an increase of 2.6 per cent.
Stating that Net Claims paid for the year was N2.6 billion, he added that N1.8 billion claims were paid in the previous year, resulting into an increase of 43.2 per cent.
Pointing out 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, he stressed that 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.
Having been ratified by the shareholders present at the AGM, the chairman said the insurer will now pay a dividend of 13 kobo per 50 kobo ordinary shares, amounting to N686.4 million and payable to shareholders subject to deduction of withholding tax at the appropriate rate.
He promised that the company will proactively begin to prepare to raise fund for increase of its Issued Share Capital. This, he said, was in addition to its plan for the acquisition of a life company.
The company’s managing director/CEO, Mr. Tope Smart, said that despite the difficult operating environment, his company maintained its focus as it continued to increase its market share.
From about five per cent market share, he added that the company now controls close to seven per cent market share of non-life business, promising to continually 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,” he pointed out.
With a strong reputation built over the years, coupled with a very strong brand in the insurance industry and robust financials, he said, the future of the company looks very exciting, promising to take advantage of the opportunities to take the company to the next level.