The Nation Newspaper

Tag: NEM

  • NEM posts N2.19b profit

    NEM Insurance Plc has posted a profit before tax (PBT) of N2.19 billion at the end of its 2016 financial year end. This reflects a huge increase over N559.4 million posted in 2015 and represents a 290.8 per cent growth.

    The Chairman, Dr. Fidelis Ayebae, made this known while speaking at the company’s 47th Annual General Meeting held in Ibadan, Oyo State. He said NEM Group also posted a PBT of N2.14 billion from the N559.4 million recorded the previous year, representing 258.3 per cent.

    He said that as a result of the impressive performance, the Board recommended a dividend of one kobo per share to shareholders. He disclosed that there was a notable improvement in their claim experience during the period under review.

    He stated that claims expenses incurred by the group and parent company were N2.67 billion during the reporting year, an improvement of 32.6 per cent and 29.7 per cent respectively. In the previous year the absolute figures were N3.96 billion and N3.8 billion respectively.

    He noted that ‘’the improvement on our claims payment positively impacted our profit for the period as the Profit before Tax (PBT) shot up by 258.3 per cent and 290.8 per cent for the Group and Parent Company (NEM Insurance) respectively.

    He explained that following the directive of the National Insurance Commission Ghana to increase the share base of insurance companies from $1 million to $5 million, they decided to merge their operations with Regency Alliance Ghana Limited.

    He said: “The new name of the merged entity is RegencyNem Insurance Ghana Limited. ‘’As a result of the merger, the status of NEM Insurance Ghana Limited has changed from being a subsidiary to an Associate as our stake in the company is 40 per cent. This resulted into a decrease of 1.3 per cent in gross premium over the previous period for the group. The absolute figure was N10.8 billion in 2016 as against N10.9 billion in 2015’’.

    On the other hand, the Parent Company recorded an increase of four per cent over the previous year. The sum of N10.8 billion was achieved in 2016 while in 2015 it was N10.3 billion.

  • ‘NEM committed to economic growth’

    ‘NEM committed to economic growth’

    NEM Insurance is committed to its shareholders’ vision of making the company a model of sound insurance practice in the  industry and growing the economy, its Group Managing Director, Tope Smart has said.

    Speaking at a briefing at the just-concluded African Insurance Organisation in Kampala, Uganda, he said the firm will achieve this goal by offering quality services and pays claims promptly.

    He stressed that the company also engage in marketing programmes that will enable the public make an informed choice about its.

    He said: “We intend to build a customer satisfying insurance institution that is passionate about adding value to the interests of all stakeholders and be the preferred choice of the insuring public

    “The location of our headoffice at Palmgroove area on Ikorodu road brings us closer to our customers. The office is very accessible and people feel comfortable when they can easily assess their partners. It is very accessible and the environment is very friendly unlike where we were on the island and the people are always happy because.

    “It is very comfortable and so we have customers coming in and going out on daily basis and they are satisfied. We believe that it’s not enough for them to come in, but for us to ensure they get satisfaction when they come into our office.”

    On the preparedness of the company in adopting Risk-Based Supervision (RBS) introduced by the National Insurance Commission (NAICOM), he said they were preparing for the risk based supervision.

    He stressed that the company already have consultants to ensure that their reportr was ready on time.

    ‘’We have also put in place a corporate governance structure and we will continue to improve and we have people working with us to ensure that we get it right, ‘’he added.