Policyholders of NEM Insurance Plc who suffered insured risks in 2020 financial year got claims amounting to N8.4 billion.
This translates to 15 per cent increase from N7.3 billion it paid in its 2019 financial year.
Similarly , its 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, the company said.
Despite the Covid-19 pandemic that disrupted businesses last year, the insurer also posted N22 billion gross premium income in its 2020 financial year.
This was about N2.2 billion growth over N19.8 billion gross Premium declared in the previous year of 2019.
Speaking at the 51st annual general meeting (AGM) of the insurer in Lagos recently, its chairman, Dr. Fidelis Ayebae, said 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 put at 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.”
A gross claims of N8.4 billion, he explained, was incurred in 2020 while that of 2019 was N7.3 billion; an increase of 15 per cent.
Similarly , its 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 stated.
While the group’s profit after tax (PAT) for the preceding period was N2.4 billion, he said 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.
Meanwhile, the group managing director, Tope Smart, said: “We thank 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.”