By Omobola Tolu-Kusimo
NEM Insurance Plc’s Gross Premium has grown by 13 per cent in the 2019 financial year to N19.8 billion from N15 billion in 2018.
The company’s net premium also increased by 18 per cent from N10.6 billion in 2018 to N12.6 billion in 2019.
The company’s performance shows that shareholders fund rose from N12.4 billion in 2018 to N14.1billion in 2019.
On the other net claims paid during this period increased by 54 per cent from N2.5 billion to N3.9 billion while investment income decreased by eight per cent from N953 million to N878 million due to low yield on investments.
The huge claims paid during the period had a negative impact on the bottom line as profit before tax came down from N2.6 billion to N1.9 billion, a decrease of 29 per cent.
However, profit after tax increased from N2 billion to N2.4 billion, an increase of 18 per cent due to deferred tax asset. From an associate in Ghana, the company achieved a 1 per cent increase in profit from N21.2 million in 2018 to N21.4 million in 2019, with plans to improve in this area next year.
Speaking at the just-concluded Annual General Meeting of the company, the Group Managing Director, Mr. Tope Smart said they were able to record some modest achievements in most of our indices, despite the difficult operating environment, coupled with increased claims profile due to some very big claims paid during the period under review.
He explained that the claims put pressure on their bottom line, and efforts were being made to ensure we improve on these numbers. He further stated that during the year, the National Insurance Commission (NAICOM) increased the minimum paid up capital of insurance and reinsurance companies and were initially given up to 30th June 2020 to comply.
He said: “This period was subsequently changed to 31st December 2020 due to pressure from operators. We are working hard to ensure compliance before the due date.
“Our associate in Ghana, RegencyNEM Insurance, is equally going through a recapitalisation 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,” he added.
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