The Managing Director/ Chief Executive Officer, NEM Insurance Plc, Mr. Tope Smart, has reassured shareholders that the company is working very hard to ensure compliance with the recapitalisation deadline for insurance companies.
Speaking at the company’s annual general meeting (AGM) in Lagos, Smart said: “During the year(2019), our regulator, National Insurance Commission (NAICOM) increased the minimum paid up capital of all Insurance and Reinsurance companies and were initially given up to June 30, 2020 to comply.
“This period was subsequently changed to December 31, 2020. We are working hard to ensure compliance before the due date. Our associate in Ghana, Regency NEM Insurance is equally going through a recapitalisation process as directed by the National Insurance Commission, Ghana. However, they have up to June 2021 to comply and we are working towards complying with this new capital regime also.”
Smart said the net claims paid by the company in 2019 financial year rose by 54 per cent to N3.9 billion from N2.5 billion in the corresponding period of 2018, explaining that the huge claims paid had a negative impact on its bottom line as profit before tax stood at N1.9 billion from N2.6 billion in 2018.
“However, profit after tax increased to N2.4 billion from N2 billion, an increase of 18 per cent due to deferred tax asset. From our associate in Ghana, we achieved one per cent increase in profit from N21.2 million in 2018 to N21.4 million in 2019. We are confident of improving on this next year,” he added. A dividend of 15 kobo per share was paid to the shareholders.
In his address, the chairman of the company said the company had adopted prudent policies to grow market share by leveraging extensively on its robust technology infrastructure in spite of COVID-19 pandemic.
“Since the outbreak of the novel strain of Coronavirus, specifically identified as “COVID-19” in December 2019, governments worldwide have enacted emergency measures to combat the spread of the virus. NEM is also actively assessing and responding where possible to its potential impact on the Company’s business.The focus has been on the safety of our personnel, ensuring the continuity of access to our products by our clients and also efficient service delivery.As the situation continues to be very dynamic, the company has been working diligently to assess the potential risks posed by COVID-19 to its business on an ongoing basis and to realign its strategies accordingly,” he said.