NEM Insurance Plc, one of Nigeria’s leading insurance companies, announced that it paid a total of N7.6 billion to its claimants for the financial year that ended on December 31, 2022. This figure represents a significant growth of 38 percent compared to the N5.5 billion paid in the previous year, according to Dr. Fidelis Ayebae, Chairman of NEM Insurance.
Speaking at the company’s 53rd Annual General Meeting (AGM) held in Lagos, Dr. Ayebae revealed that the net claims ratio for the year under review was 22 percent, showing a 2.1 percent increase compared to the previous year’s ratio of 19.9 percent. The gross claims incurred during the same period amounted to N12.3 billion, up from N11.6 billion in 2021, indicating a 7.9 percent increase.
The chairman highlighted that the gross claims ratio for 2021 stood at 42.0 percent, while it decreased to 37.4 percent in 2022, reflecting a five percent improvement. Additionally, NEM Insurance recorded a gross premium of N33.3 billion in 2022, showing a growth of 20 percent from the N27.7 billion recorded in the previous year.
Dr. Ayebae further noted that the investment income of the firm saw a substantial increase of 37 percent, with N1.5 billion recorded in 2022 compared to N1 billion in 2021. Moreover, the company’s profit before tax for the year under review amounted to N5.5 billion, marking a 21 percent increase from N4.5 billion in 2021.
To reward its shareholders for their support, NEM Insurance recommended a total dividend of N1.50 billion, which represents 30k per ordinary share, subject to the appropriate rate of withholding tax deduction.
Dr. Ayebae also shared the company’s strategic plans for expansion, revealing that NEM Health Ltd., a subsidiary of NEM Insurance, was incorporated in 2022 and commenced operations in 2023. Furthermore, plans to establish a viable life insurance company were still underway.
Acknowledging the challenging operating environment in 2022, characterized by risks of insecurity, uncertainties, fuel scarcity, price hikes, and high inflation rates due to it being a pre-election year, Dr. Ayebae commended the company’s excellent performance in the face of these challenges.
Commenting on the impressive results, Mr. Tope Smart, the Group Managing Director of NEM Insurance, highlighted that the company’s performance indices had significantly improved compared to the previous year. He attributed the positive results to the resilience and strategic implementation by the board and management, enabling NEM Insurance to navigate the global and local challenges that affected economic activities.
Mr. Smart expressed his gratitude to the company’s clients, brokers, staff, and shareholders for their unwavering support, emphasizing that their contributions played a vital role in achieving these remarkable results.
Despite the demanding operating environment, NEM Insurance Plc has demonstrated its commitment to providing quality insurance services and ensuring the satisfaction of its claimants while achieving impressive financial performance in 2022.
