NEM Insurance 2020 financial report indicate N22bn premium, N8.4bn claims, N,5bn profit
The Chairman of NEM Insurance Plc, Dr.Fidelis Ayebae, told appreciating shareholders at the yearly general meeting recently that the company recorded gross premium of N22 billion in the 2020 financial year as against N19.8 billion generated in the preceding year of 2019, representing an increase of 12 percent. The net premium earned during the period under review also rose by 25 percent to N15.8 billion over the preceding period of 2019 which recorded N12.6 billion.
Ayebae told shareholders at the 51st Annual General Meeting (AGM) of the underwriter that while a gross claim of N8.4 billion was incurred in 2020, that of 2019 was N7.3 billion; a rise of 15 percent. He was emphatic that payment of such claims to its policyholders was a key element of why the company is in insurance business, which means taking care of claims when they occur.
He added that while the Group’s Profit After Tax (PAT) for the preceding period was N2.4 billion, the sum of N5.08 billion was recorded in the reporting period; an increase of 112 percent. In the same vein, the parent company also recorded an increase of 113 percent PAT over the preceding period. That is, N2.4 billion was generated in 2019 against N5.08 billion in 2020.
Mr. Tope Smart, Group Managing Director/CEO of NEM Insurance Plc stated that investment income increased by 14 percent from N878 million in 2019 to N1 billion in 2020 while shareholders’ fund grew by 30 percent from N14 billion in 2019 to N18.4 billion in year 2020.
“I want to use this opportunity to express my gratitude to all brokers and clients for their unalloyed support over the years. We appreciate your support.
To our Board members, words are not enough to express our appreciation to you for creating the right environment which assisted us in delivering value to all stakeholders. We are grateful.
I want to equally thank all our staff who in the midst of difficulty, brought about by COVID-19 have remained undaunted and have continued to deliver superior services to our numerous brokers and clients. To all our shareholders, thank you for keeping faith with us in this journey.
As we look forward to the future, we are confident that more than ever before our goal of industry leadership is within reach.”
Smart said the “company remains well positioned and its business strong given the unprecedented circumstances and current market environment. The company has adopted policies which are prudent at this time to grow its market share by leveraging extensively on its robust technology infrastructure and maintain a healthy balance sheet.”