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  • NEM Insurance holds  fitness walk

    NEM Insurance holds  fitness walk

    As part of its awareness programme, NEM Insurance Plc has held a fitness walk in Lagos.

     Tagged ‘Nem Insurance Walk’, the initiative saw staff members of Nem Insurance starting the walk from the company’s head office on Ikorodu Road, Lagos, Maryland, and back to the office. On the way, they distributed flyers and promoted the company’s products to residents.

    Managing Director of NEM Insurance, Mr. Andrew Ikekhua, said: “This event serves as a platform for image branding, where we showcase and market our products. People identify with us because they recognise our strong brand.”

    Ikekhua highlighted that NEM Insurance’s capitalisation and prompt response to client needs have positioned the company as a leader in the industry.

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    He added: “Our customers trust our brand, and we don’t take that for granted. As a leader in the general insurance business, we will continue to elevate our standards.”

    NEM Insurance recently announced impressive results for the 2024 financial year, including a record turnover of N108 billion in insurance revenue.

    This achievement reflects the company’s commitment to strategic growth and consolidates its position in the Nigerian insurance market.

    Also, Nem Insurance paid a substantial N23 billion claims to policyholders during the 2024 financial year, reinforcing its commitment to supporting customers and helping them recover from losses.

    Despite operating in a challenging environment, Nem Insurance showed remarkable profitability, recording over N20 billion in profits last year, a testament to its resilience and strong market presence.

  • NEM grows revenue to N52.1b

    NEM grows revenue to N52.1b

    • To set up Life Insurance

    NEM Insurance has grown its revenue from N31.4 billion in 2022 to N52.1billion in 2023, representing an increase of 66 per cent.

    Its Group Chairman, Mr. Tope Smart, made this known at the company’s 54th Annual General Meeting (AGM) in Lagos.

    He reiterated that, as part of its expansion, the plan to set up a viable life assurance company was in progress.

    He noted that on the investment income, an increase of 106 per cent was achieved relative to 2022.

    He informed the shareholders that the Board had allotted a dividend of 60 kobo per N1 ordinary shares amounting to N3 billion to them.

    He added that the total investment income in 2022 was N1.6 billion while that of last year was N3.3 billion, adding that the claims paid during the year was N15.7 billion as against N12.3 billion in 2022; an increase of 28 per cent over that of the preceding year.

    He said: “The claims ratio for 2023 was 30 per cent while that of 2022 was 40 per cent, a decrease of 25 per cent.’’

    Smart also said the management expenses increased from N3.7 billion in 2022 to N5.3 billion in 2023, 43 per cent, stressing that the increase was due to the impact of inflation and business growth during the year under review.

    On guidelines and standard implementation, he submitted that as part of global business ethics, standards and best practices would continue to evolve, adding that insurance companies are transiting to the International Financial Reporting Standard (IFRS) principles for reporting insurance contracts.

    He said the adoption of IFRS 17 was part of measures to improve reporting practices, transparency, comparability, and disclosures in line with international best practices.

    IFRS 17 is effective for the annual reporting period beginning from 1st January 1, 2023, he added

    “NEM Insurance Plc is a leading insurance provider in Nigeria, offering all forms of general insurance products with a history of successful financial reporting under previous accounting

    standards, the company realized the importance of embracing IFRS 17 as well as the directives from regulatory authorities and adopted IFRS 17 in presenting its 2023 financials.

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    “This required significant changes to the actuarial models, processes and accounting treatment which was quite tasking, time-consuming and resource intensive.

    “As part of regulatory compliance also, we have complied with the Securities and Exchange Commission’s directive on Internal Control Over Financial Reporting (ICFR).Profit for the year,” he further said.

    The NEM Group chairman maintained that the group’s Profit Before Tax (PBT) for the year under review was N18.9 billion and N5.5 billion in 2023 and 2022, an increase of 244 per cent.

    The parent company’s PBT was N19.2 billion for 2023 and N5.5 billion for 2022, an increase of 249 per cent, he stated.

  • NEM embarks on fitnesswalk to raise insurance awareness

    NEM embarks on fitnesswalk to raise insurance awareness

    NEM Insurance Plc has embarked on its second phase of Fitness Walk for the year to enhance insurance education and awareness in the country.

        The Walk, which comes up twice a year, precisely in March and between October and November each year, was meant to ensure insurance practitioners are physically and mentally fit to sell insurance products and services.

        Speaking to journalists at the end of the Fitness Walk at the company’s headquarters in Obanikoro area of Lagos, the Managing Director/CEO, NEM Insurance Plc, Mr. Andrew Ikekhua noted that, only someone who is physically and mentally fit can practise insurance as a profession.

        The fitness walk started at NEM House in Obanikoro, terminated at Maryland and back to NEM office on Ikorodu road, in which its staff partook in the early morning walk.

     Speaking further, he said  the company initiated the fitness walk as a form of exercise as well as enhance insurance awareness among Nigerians.

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     Stating that the exercise is good for the body, he said it is also an avenue to promote the name and insurance products of the company for people within its environs.

     He said: “We have been able to create awareness about insurance as we walk because people kept asking who we are and what we do and in the process of answering them, we are educating them and deepening insurance penetration,” he said.

    While urging Nigerians to insure their risk exposures, he advised people to approach his underwriting firm for their general insurance products and services.

        He advised Nigerians to insure their risks by subscribing to insurance products to take care of all their assets and restore any financial loss.

  • NEM posts N15b gross premium

    NEM Insurance Plc has grown its gross premium by 12.2 per cent from N13.4 billion in 2017 to N15 billion in 2018.

    The underwriting firm’s net premium also increased from N9.8 billion to N10.7 billion, an increase of 9.1 per cent in the period under review.

    Its investment income increased by 34 per cent from N709 million in 2017 to N953 million in 2018, just as profit decreased.

    The group’s Profits before Tax (PBT) for the year under review was N2.69 billion and N3.09 billion in 2017, a decrease of 13.2 per cent, while the parent company’s PBT was N2.67 billion for 2018 and N3.08 billion for 2017, a decrease of 13.4 per cent.

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    The gross claims incurred during the year was N6.01 billion, an increase of 20.0 per cent over that of the preceding period that was N5.01 billion. The Gross Claims ratio for 2018 stood at 40.0 per cent whereas that of 2017 was 37.4 per cent, an increase of 2.6 per cent.

    Addressing shareholders at the firm’s 49th Annual General Meeting, the Chairman, Dr. Fidelis Ayebae explained that the decrease in profit recorded due to the increase in claims paid during the period under review.

    He said the Board during the year under review supervised the management’s efficiency that brought about a reduction in the management expenses from N2.9 billion in 2017 to N2.8 billion in 2018.

    The Group Managing Director/Chief Executive Officer, Mr Tope Smart on his part said the company has increased its market share from about 5 per cent market share to about 7 per cent market share despite the difficult operating environment.

  • AFIG invests in NEM

    EM Insurance Plc, a leading insurance group in Nigeria, over the weekend announced that Advanced Finance and Investment Group (AFIG Funds), a leading African private equity fund manager has, through AFIG Fund II, completed an investment in the company.

    Group Managing Director of NEM Insurance, Mr. Tope Smart made this known in Lagos.

    According to him, the AFIG Funds invested in the company by acquiring 29.9 per cent of the company’s shares from some shareholders of the company.

    He disclosed that this transaction now makes AFIG Funds the largest shareholder in NEM, and marks the commencement of a strategic partnership between AFIG Funds and NEM, as the company embarks on its next growth phase as a top-tier player within the Nigerian insurance industry.

    He stated that NEM is a top-tier non-life insurance company which has been in operation in Nigeria for over 60 years, and more recently in Ghana.

    He said: “The company offers all classes of non-life insurance products to individuals and corporates in Nigeria, and has over the years become a household name. NEM has over the last decade built a solid record of service delivery excellence, superior financial performance including consistent profitability and healthy returns to its shareholders.

    “We are delighted to welcome AFIG Funds as a significant shareholder in NEM at such an exciting time in the company’s evolution.

    ‘This partnership with AFIG Funds is the outcome of several years of constructive engagement, as well as a thorough internal strategic process to identify and engage with the best long-term institutional partner for our company.’

  • New core investor acquires largest stake in NEM

    Advanced Finance and Investment Group (AFIG) Funds has acquired 29.29 per cent largest equity stake in NEM Insurance Plc. AFIG Funds, an African private equity fund manager, acquired the shares from existing shareholders of the insurance company.

    Group Managing Director, NEM Insurance Plc, Mr Tope Smart, said the AFIG Funds investment was a product of several years of constructive engagement and strategic internal decision to partner with a long-term institutional partner.

    He said the partnership with AFIG Funds will accelerate the realisation of the insurance company’s growth ambitions within Nigeria and across the continent.

    “We are confident this will be a fruitful and mutually rewarding partnership,” Smart said.

    Director of Investments, AFIG Funds, Mr Kelechi Okoro said the new core investor has confidence in the management of NEM, citing its growth trajectory over the year.

  • Stock Exchange demotes Diamond Bank, NEM, Continental Re

    Authorities at the Nigerian Stock Exchange (NSE) have removed Diamond Bank Plc, NEM Insurance Plc and Continental Reinsurance Plc from its high-ranking corporate governance index.

    In a statement yesterday, the NSE stated that the companies would cease to be on its Corporate Governance Index (NSE CGI) with effect from today, January 1, 2019.

    The Exchange indicated that the removal of the duo of Diamond Bank and NEM Insurance was due to observed corporate governance lapses while Continental Reinsurance is being removed due to the company’s quest to voluntarily delist its shares from the Exchange.

    “The Index Governance Committee of the Exchange resolved to remove NEM Insurance from the NSE CG Index following the suspension of the CGRS rating of the company by the Steering Board of the CGRS on Monday, November 19, 2018. Additionally, in view of the recent governance issues with Diamond Bank, the Index Committee has decided to remove the bank from the NSE CG Index,” the Exchange stated.

    The Corporate Governance Rating System (CGRS) is a joint initiative between the NSE and the Convention on Business Integrity (CBi). It was developed to rate the corporate governance and integrity practices of all companies listed on the Exchange. The CGRS was launched on November 3, 2014.

    The NSE CG Index tracks the performance of CGRS-rated companies using their market capitalisation, free float and corporate governance rating scores. The Index is reviewed on a bi-annual basis during which other companies that have become CGRS-rated in the interim may be added to the Index or companies that have had their ratings suspended or withdrawn may be removed.

    The NSE CG Index is expected to be an important tool for investors keen on investing in well-governed companies as well as corporates eager to distinguish themselves on the ground of governance.

    The Nation had earlier reported that the NSE had launched an engagement process to review the compliance of Stanbic IBTC Holdings Plc and Diamond Bank Plc to high-level corporate governance standards expected of top-rated quoted companies.

    The review was sequel to the fines imposed on Stanbic IBTC Bank and Diamond Bank by the Central Bank of Nigeria (CBN) for complicity in alleged illegal repatriation of $8.1 billion by MTN Nigeria Communications Limited. Diamond Bank was also subsequently embroiled in boardroom squabble that saw resignation of some non-executive directors.

    To be certified, the CGRS rates quoted companies through three processes including independent verification; self – assessment by the company; certification of director awareness of their fiduciary duties; and a corporate integrity assessment where perceptions of actual company behaviour are sought from internal and external stakeholders.  A score of 70 percent and above for both the company and individual directors is required for certification.

  • NEM creates awareness with fitness walk

    NEM Insurance Plc has embarked on a fitness walk to create insurance awareness and develop its workers physically and mentally.

    The workers, led by the Group Managing Director of the underwriting firm, Tope Smart and other executive directors, walked from the company’s head office on Ikorodu Road to Maryland, Lagos and back, distributing flyers and sensitising the public.

    Smart, who spoke after the exercise, said the company aims to promote not only a professionally fit workforce but also a healthy and physically fit workforce.

    He said the company believes that the walk will have an impact on its operations because a fit workforce will ensure the staff do their job without any stress.

    He stated that the company also used the  walk to promote and advance the image of the industry.

    He added that the company is doing very well as they are moving to achieve our target for the year.

    He said: “The fitness walk is an initiative that we came up with when we discovered that the stress surrounding Nigerians daily activities was very much. Also, apart from our marketers who go out, some other staff will sit from morning till evening.

    “Although we have a gym in the office building and a few of them make use of it early in the morning before they begin work, many of the staff do not have the opportunity to do that. We have also been using the image of the company to promote the industry.

    “NEM is doing very well as we are moving to achieve our target for this year. Our income is and bottom line are growing and we are excited”, he said.

  • Shareholders laud NEM as 2017 results soar

    Nem Insurance Plc shareholders have lauded the underwriting firm as its indices grew on all fronts in the 2017 financial year.

    Aside paying 10 kobo as dividend, the firm posted a gross premium of N13.4 billion, resulting in an increase of 24.7 per cent over the previous period, which was N10.8 billion.

    Profits before Tax (PBT) of the Group and Parent Company for the period under review were N3.09 billion and N3.08 billion, with increases of 44.2 and 41.0 respectively.

    In the same vein, it’s net premium  increased by 15.2 per cent.  The figures for 2017 and 2016 were N9.8 billion and N8.5 billion respectively.

    There was also an increase of 48 per cent of investment income of N709.9 million in 2017 over that of 2016 of N479.5 million.

    Its Chairman, Fidelis Ayebae, who presented the results to shareholders  at the 48th Annual General Meeting  at Premier Hotel, Ibadan said claims and expenses incurred during the year was N1.78 billion, which is an improvement of 33.2 per cent. He stated that the absolute figure for 2016 was N2.7 billion.

    He disclosed that the gross claims ratio for 2017 stood at 37.4, a slight improvement of 1 per cent over the preceding period which was 37.4 per cent.

    He said: “The net claims ratio was 18.2 per cent for the year under review and 31.4 per cent. for the preceding year, an improvement of 42 per cent. The improvement in the ratio was as a result of the good recovery made from our reinsurers. During the period under review there were increases of 26.2 per cent and 28.2 in management expenses for the Group and Parent Company respectively. In 2017 the figures for the Group and Parent Company were N2.98 billion and N2.96 billion while in 2016 the figures were N2.36 billion and N2.31 billion respectively.

    “There were improvements of 47.7 and 21.2 in financial assets and total assets for both the Group and Parent Company over those of the preceding period; while improvements of 31.6 per cent and 31.3 per cent were recorded in total equity for the Group and Parent Company respectively. Earnings Per Share (EPS) for the Group during the year under review was 53 kobo; while that of the preceding year was 34 kobo; an increase of 52.7. The EPS of the Parent Company was 52 kobo, an increase of 49.5 over that of the preceding year which was 35 kobo.”

    On dividend, the Chairman said following the impressive result for the year under review, the Board recommended a dividend of 10 kobo per share. “This is a 25 per cent increase over 8 kobo paid last year. Human Capital he management recognises that Human capital is priceless; hence much importance is placed on training and good welfare package for our staff. Juring the year, over 90 of members of staff were sent on local and international trainings in orderto better their performances on the job. In addition, members of staff who performed excellently were promoted during the year,”he said.

    Group Managing Director, Tope Smart on his part added that despite the challenging competitive operating environment, “our focus on industry leadership remained unwavering”.  Smart stressed that one of the ways of doing it is brand differentiation.

    “We have continued to delight our numerous customers by providing them with unparalled services and solutions thereby consolidating our position with them.  Our service delivery mechanism, which is anchored on our core values of humility, integrity, discipline, excellence, empathy and courage (HIDEEC) has helped us in no small measure in our brand differentiation initiative.

    “Our Associate in Ghana, RegencyNem Insurance  Ghana Limited is riding on the synergy of the merger as the company is presently making waves in the Ghanian Insurance Industry, and is set to contribute significantly to our bottom line in the years ahead. A review of our performance in year 2017 has again demonstrated our consistency and determination to move up the ladder.

    “Our staff have remained our greatest asset.  They have demonstrated that with unity of purpose, there is no height that is unattainable,” he said.

  • Insurance is evolving, says NEM MD

    Insurance is evolving, says NEM MD

    The Managing Director of NEM, Tope Smart, speaks on the comapany, the industry and the economy. Excerpts:

    The negative perception of the insurance industry by Nigerians seems to persist. Is there any reason they should change their mind?

    Yes, there is every reason Nigerians should change their mindset about insurance. The sector has come of age, even though we are still evolving. The major challenge we have now is low awareness and because of the past image of the industry, people are a bit sentimental. In those days, companies were not paying claims, people were not responsive and we had to go through hell before we got your claims paid. These were the kind of things that happened in the past and it had affected the people. As I said earlier, insurance companies have come of age. You can do transactions with insurance companies and get your claims paid. The service delivery has greatly improved, and, so I think, people should have the habit of creating confidence in the insurance sector that we have today.

    NEM seems to be growing rapidly going by your financial results and your headquarters edifice. How did you get to where you are, despite the challenges in the sector?

    We have been able to achieve a lot, including putting up our edifice on Ikorodu Road, Obanikoro, Lagos. It is part of promoting the image of the industry. I recall that when I was in the university after the completion of my study of insurance, people used to look down on insurance. One of the things I said to myself was, as I join the insurance industry, I should be able to make a mark and change the poor perception of the public against the industry so that people can have respect for insurance practitioners and this is exactly what we have done at NEM. A number of people, including management of top banks, have come here. Some people who have been abroad and who saw the way insurance is doing there, came here and were wooed. They said insurance companies here can now be compared to those in abroad. For us, we are trying to prove a point that the industry has come to stay and is a force to reckon with in the economy.

    So, how genuine are insurers in claims payment?

    Yes, we are for real. We are willing and ready to pay claims. When a client has a legitimate claim, he or she, group or corporate organisations, will get the claims paid seamlessly without going facing any rudiments. But if a client has legitimate a claim and an  insurance company refuses to pay, you can report such a company to the regulator and they would ensure that you get your claim.

    Why should people insure?

    Insurance is the bedrock of any economy. It is very important for people to secure their assets so that in the unlikely event that you suffer one loss or the other, insurance will put you back in the position you were before the loss. Insurance companies are supposed to restore you to that position you were so that it is a seamless effort. It is very important for industries, companies and individuals. For instance, someone who has bought a car for N2 million and he insures it, the company will make sure that his standard does not fall below the level he was before the loss occurred. So, this is why I encourage everybody to protect his/her assets by buying an insurance product. By doing so, they are securing their future.

    At NEM, we have various products that you can use to secure your future. NEM is one of leading companies in the industry  because it has revolutionised insurance practice in Nigeria. NEM is the best in terms of service delivery, relationship and in all other parameter or indices.