Insurance company pays N11.6 billion claims

Nem Insurance Plc paid N11.6 billion to its claimants in the 2021 financial year.

The chairman of NEM Insurance, Dr. Fidelis Chairman, revealed this during the company’s 52nd Annual General Meeting in Lagos on Thursday.

He also said the company recommends a dividend of 22 kobo per ordinary share to be paid out of profits for the year.

“While a gross claim of 11.6 billion naira was incurred in 2021, that for 2020 was 8.4 billion naira, an increase of 26 per cent,” he said.

He noted that his gross premium increased by 26% to N27.8 billion from the N22 billion generated the previous year, while the net premium earned during the reporting period increased to N19.3. billion naira, up from 15.8 billion naira in 2020.

The group’s after-tax profit for the year under review was N4.448 billion, compared to N5.084 billion the previous year, representing a decline of 12.5 percent, it added.

He said the parent company recorded a 12% decline in profit after tax in the previous period from N5.07 billion in 2020 to N4.44 billion in 2021, due to a sharp drop in the fair value gain.

The Chairman said: “There were increases of N3 billion, N6.9 billion and N4.5 billion in financial assets, total assets and group equity respectively.

“In addition, the parent company recorded increases of N2.9 billion, N6.8 billion and N4.5 billion, respectively, in financial assets, total assets and total shareholders’ equity.”

Despite the suspension of recapitalization introduced in the industry by the National Insurance Commission, he said the company was ready as it had sufficient reserves to do so.

He said: “As approved at the company’s EGM in 2020, a bonus was given to existing shareholders on a pro rata basis of nine for 10 in 2021. You will recall that by the end of 2020 we had recapitalized up to ‘to 5.016 billion naira.’

The group’s managing director, Nem Insurance, Mr Tope Smart, said a review of its performance showed that all its indices were positive during the period under review.

He expressed his gratitude to all his clients and brokers for their support over the years.

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