ustaining its leading role in the nation’s underwriting sector, NEM Insurance Plc has grown its annual gross premium income by 31.3 per cent from N15. 04 billion in 2018 to N19. 8 billion in 2019.
Giving the breakdown at the company’s 50th Annual General Meeting, the Chairman, Dr. Fidelis Ayebae, said the company’s performance had been a consistent upward progression.
According to him, the Net Premium earned during the period under review was N12.6 billion and 18 per cent increase over the preceding period of 2018, which recordedN10.7 billion.
He, however, said that as a result of the crash in interest rate during the reporting period, the income earned on investment came down to N878.2 million as against the previous income of 2018, which was N952.8 million. This resulted in a reduction of 7.8 per cent.
Speaking on the claims paid during the period under review, he said: “While a gross claim of N7.4 billion was incurred in 2019, that of 2018 was N6.01billion; an increase of 22.7 per cent.
According to him, “even at this, the gross claims ratio was 2.7 per cent lower than that of the previous period of 2018. In other words, while the ratio for 2019 was 37.3 per cent that of 2018 was 40 per cent.
“In the same vain, the net claims expenses of N3.9 billion incurred in 2019 was 54.1 per cent higher than that of the preceding period, which recorded N2.6 billion.
“The net claims ratio for the period under review was 31.2 per cent as against that of 2018 that was 23.9 per cent, an increase of 7.3 per cent.
On management expense, he said the group incurred the sum of N3.5 billion, an increase of 25.1 per cent over that of 2018, which was N2.8 billion.
He said: “The parent company also incurred an increase of 25.3 per cent over that of the previous period of 2018.
“Specifically, while N3.5billion was incurred in 2019, N2.8 billion was incurred in 2018.
Opening up on the profit posted, the Chairman said while the group’s profit after tax (PAT) for the preceding period was N2.04 billion, the sum of N2.4 billion was recorded in the reporting period, representing an increase of 17.6 per cent.
“The parent company also recorded an increase of 17.7 per cent PAT over the preceding period.That is N2.38 billion was generated in 2019 against N2.02 billion in 2018,” he noted.
On the group’s financial assets, total assets and total equity, he said there were increases of N1.08 billion, N3.25 billion and N1.67 billion respectively.
“Also, the parent company had increases of N1.08 billion; N3.23 billion and N1.66 billion in financial assets, total assets and total equity respectively.
“The group’s earning per share for the year under review was 45 kobo while that of the previous year was 39 kobo; an increase of17.6 per cent.
“The parent company’s EPS for the year under review was 45 kobo compared to 38kobo in the preceding year, an increase of17.7 per cent.
On his part, the Group Managing Director of the firm, Tope Smart, said the company’s shareholders’ fund also increased from N12.4billion in 2018 to N14.1billion in 2019, stressing that the huge claims paid during the period had a negative impact on the firm’s bottom line as profit before tax came down from N2.6billion to N1.9billion, a decrease of 29 per cent.