BY NKECHI NAECHE—--Top underwriter, NEM Insurance Plc said its gross premium income rose to N15.04 billion at the endec of the ginancial year 2018.
The chairman of the company, Dr. Fidelis Ayebae disclosed this to shareholders during its annual general meeting held yesesterday in lagos that its gross premium increased by 12.2% over the previous year’s turnover of N13.4 billion an increase of 9.1%. That is, while N10.7 billion was earned in 2018, N9.8 billion was earned in 2017.
He added that investment income increased by 34.2% to stand at N952.8 million when compared with N709.9 million recorded in 2017.
The Gross Claims incurred during the year rose to N6.01 billion; an increase of 20.0% over that of the preceding period that was N5.01 billionmrecorded in 2017. The Gross Claims ratio for 2018 stood at 40.0% whereas that of 2017 was 37.4%, an increase of 2.6%.
Net Claims paid for the year was N2.6 billion, while that of the previous year was N1.8 billion; resulting into an increase of 43.2%. The Net Claims ratio was 23.9% for the year under review and 18.2% for 2017; an increase of 5.7%.
The chairman said that over 90 per cent of the staff were sent on training during the period. He said this was in line with the company’s policy of ensuring enhancement of knowledge of members of staff and improving their skills on the job.
Following its outstanding performance, the board recommendedoand a dividend of 13 kobo per 50 kobo ordinary shares amounting to N686, 465,379 and payable to shareholders subject to deduction of withholding tax at the appropriate rate.
On future prospect, he said “following the cancellation of tier-based minimum solvency capital, the company shall proactively begin to prepare to raise fund for increase of our issued share capital. This is in addition to our plan for the acquisition of a life company.”
Responding to shareholders questions, Mr Tope Smart, the Group Managing Director, assured shareholders that they were currently engaging NAICOM on recapitalisation modalities. Smart, who is also the Chairman, Nigeria Insurers Association, said they were engaging the commission to ensure that all members met the deadline. He said that the company was set for new heights and enhanced dividend payment to shareholders.
“With a strong reputation built over the years, coupled with a very strong brand in the insurance industry and robust financials, the future of the company looks very exciting. “We are determined to take advantage of the opportunities we have in order to take our company to the next level,” Smart stated. He noted that the company had maintained its focus in the industry and would continue to increase market share despite the difficult operating environment. “From about five per cent market share, we now control close to seven per cent market share of non life business. We are determined to improve on this figure.
” Our associate in Ghana Regency Nem Insurance is expanding its operations into major areas in Ghana. “This will lead to more income for the company and ultimately impact its bottom line in the nearest future,” Smart said. He said that the company recorded gross premium of N15.04 billion during the period under review. Dr Fidelis Ayebae, the company’s Chairman, said that gross claims incurred during the period was N6.01 billion, an increase of 20 per cent compared with N5.01 billion in 2017.
