Policyholders who sustained insured risks were eligible to collect ₦11.6 billion from NEM Insurance Plc in 2021, restoring them to their pre-disaster financial condition.
The claims paid represented a 26% increase over the ₦8.4 billion paid in 2020. Similarly, its net claims expenses of N5.6 billion in 2021 were 9% lower than the previous period, which recorded ₦6.05 billion.
Due to good claims recovery during the time under review, the net claims ratio was 20% for the period under review, compared to 27% in 2020.
Similarly, the insurance company saw a 26% increase in gross premium from ₦22 billion in its 2020 fiscal year to ₦27.8 billion after its 2021 fiscal year.
The net premium earned during the review period was N19.3 billion, a 23% increase over the preceding period in 2020, which registered ₦15.8 billion.
While the board recommended a dividend of 22 kobo per ordinary share to be paid out of the profit for the year, its group’s profit after tax(PAT) in the year under review was ₦4.4billion compared to ₦5 billion in the previous year, representing a decline of 12.5 per cent.
The parent firm also showed a 12% decrease in PAT over the previous period, so PAT was N5 billion in 2020 versus ₦4.4 billion in 2021. According to the report, this is mostly attributable to a substantial fall in fair value gain.
The chairman, Dr Fidelis Ayebae, said during the company’s 52nd annual general meeting (AGM) in Lagos on Thursday that the group’s financial assets, total assets, and total equity increased by ₦3 billion, ₦6.9 billion, and ₦4.5 billion, respectively.
He emphasized that the parent company’s financial assets, total assets, and total equity increased by ₦2.9 billion, ₦6.8 billion, and ₦4.5 billion, respectively.
While praising the management and staff ably led by its group managing director/CEO, Mr Tope Smart, he praised the efforts of directors for their efforts, devotion, and hard work, as evidenced by the results presented in previous years.
He thanked all stockholders who had been supportive and loyal to the company, as well as its clients, brokers, agents, and reinsurers, who had been constantly helpful.
Meanwhile, Mr Tope Smart, who believes the company’s future is bright, says, “We shall continue to strategize and come up with initiatives that will add value to the interests of all stakeholders while we continue to rejig our processes from time to time as we strive towards excellence in all areas of our operations”.