Kayode Tokede
The shareholders of NEM Insurance Plc have approved a dividend payment of N0.22 kobo for every ordinary share of N1 each payable in respect of the 2021 financial year.
The resolution was passed at the 52nd Annual General Meeting (AGM) of NEM Insurance held in Lagos during the weekend.
The Group’s Profit After Tax (PAT) in the year under review was N4.448 billion compared to N5.084 billion in the previous year representing a decline of 12.5per cent.
The parent company also recorded a decline of 12per cent in PAT over the preceding period. That is, N5.075 billion in 2020 against N4.440billion in 2021. This is majorly due to sharp decrease in fair value gain.
The insurance company reported a Gross Premium of N27.8billion in 2021 as against N22billion generated in the preceding year 2020; an increase of 26per cent. The Net Premium earned during the period under review was N19.3 billion and 23per cent increase over the preceding period of 2020 which recorded N15.8 billion.
Speaking to shareholders at the AGM, the Chairman NEM Insurance, Dr Fidelis Ayebae noted that gross claim by the insurance company was at N11.6billion in 2021 an increase of 26 per cent from N8.4billion reported in 2020.
He noted that, “In the same vein, the Net Claims expenses of N5.6billion incurred in 2021 was nine per cent lower than that of the preceding period which recorded N6.05billion.
“The Net Claims ratio for the period under review was 20per cent as against 27% in 2020 due to good claims recovery during the period under review.”
He said that, “the company scaled through the hurdle of the rising inflation, insecurity, climate change, Russia/ Ukraine war, hike in fuel pump price, unstable labour market and new waves of COVID-19 during the year whilst expressing certainty that the company would continue to record enhanced performance.”
“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.
“We are of the opinion that our business operations will not suffer any major setback on account of these major challenges. The board and management will continue to leverage its robust technology infrastructure and maintain a healthy result and asset base,” he explained at the AGM.
In his part, the Group Managing Director/Chief Executive Officer, NEM Insurance, Tope Smart added, “The global health crisis which further compounded the fragile economic situation in Nigeria took its toll on households and corporate bodies as may be expected.
“Despite this difficult terrain, our company showed resilience and we were able to post impressive results. As we look forward to the future, we are confident that more than ever before, our goal of industry leadership is within reach.”
