NEM Insurance well-positioned for greatness —GMD/CEO

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NEM Insurance has assured it’s shareholders that with the robust structure put place by the management team, the Insurance company is well-positioned for greatness.

The Group Managing Director and Chief Executive Officer of NEM Insurance, Mr Tope Smart gave the assurance at the 53rd Annual General Meeting (AGM) of the Company.

The GMD/CEO said notwithstanding the economic challenges in the country NEM Insurance was able to post good results due to resilience as well as the strategies formulated and implemented by the Board and Management of the Company.

Mr Smart noted that a eview of its operation showed that the Company recorded an impressive performance in the year 2022 as all performance indices improved compared with the year 2021 results.

“As management continues to prioritize efficiency, management expenses shrank to N3.4 billion in 2022 from N4.2 billion in 2021, representing a decrease of 19 per cent. Profit before taxation and Profit after Tax increased by 21 per cent and 23 per cent to close at N5.5 billion and N5.4 billion in 2022 respectively.

“Also, total assets expanded by 20 per cent to N46 billion in 2022 from N38.3 billion in 2021 while the Shareholders’ fund increased by 19 per cent to N27.2 billion in 2022 from N22.9 billion in 2021,” Mr Smart said.

Speaking earlier, the Chairman of NEM Insurance, Mr Fidelis Ayebae said the Board recommended a dividend of 30 kobo per N1 ordinary shares amounting to N1,504 943,330, while noting that if approved, it is payable to shareholders subject to deduction of withholding tax at the appropriate rate.

Mr Ayebae, while reviewing the performance of the company noted that the company Gross Premium was N33.3 billion in 2022, an increase of 20 per cent over the previous year’s turnover of N27.8 billion.

He added that the the Gross Claims incurred during the year was N12.3 billion; an increase of 7.9 per cent over that of the preceding period that was N11.6 billion.” The Gross Claims ratio for 2021 stood at 42.0 per cent whereas that of 2022 was 37.4 per cent, decrease of 5 per cent.

“Net Claims paid for the year was N7.6 billion, while that of the preceding year was N5.5 billion; resulting into an increase of 38 per cent. The Net Claims ratio was 22 per cent for the year under review and 19.9 per cent for 2021; an increase of 2.1 per cent.”

Looking into the future prospects, the Chairman said as part of the management’s plans to have a viable life company and as part of it’s strategy for expansion, NEM Health Ltd was incorporated in 2022 and commenced operation in 2023.

Ayebae, therefore, appreciated the shareholders who have been consistent in their zest to add to the growth of the company, as well as the loyal Brokers, Agents, Re-insurers and the numerous Clients of the company.

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