Despite the economic challenges in the country, NEM Insurance declared 89 per cent in gross premium written which amounted to N62.7 billion in 2023 as against N33.4 billion recorded in 2022.
At the 54th Annual General Meeting of NEM Insurance, the Group Chairman, Mr Tope Smart, while presenting the annual report and financial statements for the year ended 31st December 2023, noted that despite all challenges, NEM Insurance Plc soared higher than ever before, and because of the spectacular insurance revenue generated, the company led the general business during the year under review.
Mr Smart announced to the shareholders that another subsidiary, NEM Health Limited, was added to the group in 2023, urging that all hands must be on deck to take all the subsidiaries to greater heights.
At the AGM shareholdings of the company approved the recommended dividend of 60 kobo per N1 ordinary shares amounting to N3,009,886,660.20, payable to shareholders subject to deduction of withholding tax at the appropriate rate.
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The Group Chairman assured the shareholders that the trend of excellent performance is expected to be sustained with the support from all stakeholders and the giant strides demonstrated by the government at all levels to fight corruption, improve security, tackle unemployment, diversify the economy, enhance climate resilience, and boost the living standard of citizens.
He noted that as part of the expansion strategy of the board and management of the company, the plan to set up a viable life assurance company is in progress.
Speaking on the financials of the company in the year under review, the Managing Director and Chief Executive Officer of NEM Insurance, Andrew Ikekhua noted that Year 2023 remained a historical milestone in NEM Insurance Plc as the company did not only meet her target for the year but rose to the number one position in general business insurance market in Nigeria.
“All our performance indices for the year came positive. The company recorded a growth rate of 89 per cent in gross premium written which amounted to N62.7 billion against N33.4 billion recorded in 2022. Our total assets and shareholders’ fund recorded a leap of 64 per cent and 63 per cent respectively. Our total assets and shareholders’ funds recorded a leap of 68 per cent and 44 per cent respectively,” he said.
Ikekhua noted that Total Assets of the company grew from N44 billion to N74 billion, while Shareholders’ fund grew from N27 billion to N39 billion, he added that sterling performance was also recorded on our profit before tax with a growth rate of 249 per cent from N5.5billion in 2022 to N19.2billion in 2023. Meanwhile the total claim of N15.6bn was settled with a growth rate of 27 percent from N12.3 billion paid out in 2022.
The MD/CEO noted that during the year under review, the Global Credit Rating Agency of South Africa upgraded the financial strength of the company from AA minus to AA with stable outlook. “This new rating indicates our strong financial capacity to meet our obligations and plan big in the market. It also improves our brand acceptability with better chances of winning more corporate businesses,” he said, adding that as part of NEM Insurance’s corporate strategy, five new retail products were developed and deployed into the market after NAICOM approval in 2023.
The MD/CEO pledged that the board would continue to press home its strategic objectives while leveraging on the strength built on reputation, branch acceptability and strong financial capacity.
