BY NKECHI NAECHE-ESEZOBOR—Top underwriter NEM Insurance Plc on Thursday said it has recorded a growth of 31.3 percent in its gross premum for the year ended 31st December 2019.
The company’s Chairman Dr. Fidelis Ayebae, disclosed this during its annual general meeting held in Lagos that its gross premium rose to N19.8 billion as against N15.04 billion generated in the preceding year 2018.
He said Net Premium earned during the period under review was N12.6 billion when compared to the preceding period of 2018 which recorded N10.7 billion, indicating a growth of and 18 percent.
He added that as a result of the crash in interest rate during the reporting period, the income earned on investment came down to N878.2 million as against the previous income of 2018 which was N952.8 million. This resulted in a reduction of 7.8%.
On claims payment he said, gross Claim of N7.4 billion was incurred in 2019, that of 2018 was N6.01 billion; an increase of 22.7%. Even at this, the Gross claims ratio was 2.7% lower than that of the previous period of 2018. In other words, while the ratio for 2019 was 37.3% that of 2018 was 40%.
In the same vain, the Net Claims expenses of N3.9 billion incurred in 2019 was 54.1% higher than that of the preceding period which recorded N2.6 billion.
The Net Claims ratio for the period under review was 31.2% as against that of 2018 that was 23.9%, an increase of 7.3%.
He added that while the Group’s Profit After Tax (PAT) for the preceding period was N2.04 billion, the sum of N2.4 billion was recorded in the reporting period; an increase of 17.6%.
The Parent Company also recorded an increase of 17.7% PAT over the preceding period. That is, N2.38 billion was generated in 2019 against N2.02 billion in 2018.
Speaking further on the breakdown, he said there were increases of N1.08 billion, N3.25 billion and N1.67 billion in the Group’s Financial Assets, Total assets and Total Equity respectively.
Also, the Parent Company had increases of N1.08 billion; N3.23 billion and N1.66 billion in Financial Assets, Total assets and Total Equity respectively.
The Group’s EPS for the year under review was 45 kobo while that of the previous year was 39 kobo; an increase of 17.6%.
The Parent Company’s EPS for the year under review was 45 kobo compared to 38 kobo in the preceding year, an increase of 17.7%.
Following its outstanding financial performance, the board recommended a dividend of 15 kobo per 50 kobo ordinary shares.
