The Chairman, NEM Insurance, Dr Fidelis Ayebae, has said the group recorded N19.8bn gross premium income at the end of 2019 financial year.
“The company’s performance has been a consistent upward progression,” he said at the 50th annual general meeting of the company.
The chairman said NEM Insurance’s gross premium rose by 31.3 per cent to N19.8bn at the end of 2019 from the N15.04bn generated in the preceding year 2018.
He said the net premium earned during the period rose by 18 per cent to N12.6bn from N10.7bn in 2018.
As a result of the crash in interest rate during the reporting period, Ayebae said the income earned on investment dropped by 7.8 per cent to N878.2m in 2019 from N952.8m in 2018.
He said, “While a gross claim of N7.4bn was incurred in 2019, that of 2018 was N6.01bn, an increase of 22.7 per cent.
“Even at this, the gross claims ratio was 2.7 per cent lower than that of the previous period of 2018. In other words, while the ratio for 2019 was 37.3 per cent, that of 2018 was 40 per cent.”
While the group’s profit before tax rose by 17.6 per cent from N2.04bn in 2018 to N2.4bn in 2019.
Ayebae said the parent company also recorded an increase of 17.7 per cent in profit after tax, which rose to N2.38bbn in 2019 from N2.02bn in 2018.
“Also, the parent company had increases of N1.08bn; N3.23bn and N1.66bn in financial assets, total assets and total equity respectively,” he said.
The Group Managing Director, NEM Insurance, Mr Tope Smart, said, “Despite the difficult operating environment, coupled with increased claims profile due to some very big claims paid during the period under review, we were still able to record some modest achievements in most of our indices.”
“With a very strong foundation and brand reputation, we are well-positioned to move to the next level even as we continue to delight all our stakeholders.” – punch