NEM Insurance Shareholders Approve N0.22 Kobo Dividend for 2021 financial year
Following the resolution passed at the 52nd Annual General Meeting (AGM) of NEM Insurance Plc held in Lagos at the weekend, the shareholders of the company approved a dividend payment of N0.22 kobo for every ordinary share of N1 each payable in respect of the 2021 financial year.
The Group’s Profit After Tax (PAT) in the year under review was N4.448 billion compared to N5.084 billion in the previous year representing a decline of 12.5per cent.
The parent company witnessed a decline of 12per cent in PAT over the preceding period. That is, N5.075 billion in 2020 against N4.440billion in 2021. This is as a result of sharp decrease in fair value gain.
The insurance company recorded a Gross Premium of N27.8billion in 2021 as against N22billion generated in the preceding year 2020 representing an increase of 26 percent. The Net Premium earned during the period under review was N19.3 billion and 23percent increase over the preceding period of 2020 which recorded N15.8 billion.
The Chairman NEM Insurance, Dr Fidelis Ayebae, speaking to shareholders at the AGM, stated that gross claim by the insurance company was at N11.6billion in 2021 an increase of 26 per cent from N8.4billion reported in 2020.
Ayebae said “In the same vein, the Net Claims expenses of N5.6billion incurred in 2021 was nine per cent lower than that of the preceding period which recorded N6.05billion.
“The Net Claims ratio for the period under review was 20 percent as against 27% in 2020 due to good claims recovery during the period under review.”
According to him, “the company scaled through the hurdle of the rising inflation, insecurity, climate change, Russia/ Ukraine war, hike in fuel pump price, unstable labour market and new waves of COVID-19 during the year whilst expressing certainty that the company would continue to record enhanced performance.”
“As the situation continues to be very dynamic, the company has been working diligently to assess the potential risks posed by COVID-19 to its business on an ongoing basis and to realign its strategies accordingly.
“We are of the opinion that our business operations will not suffer any major setback on account of these major challenges. The board and management will continue to leverage its robust technology infrastructure and maintain a healthy result and asset base,” he added.
The Group Managing Director/Chief Executive Officer, NEM Insurance, Tope Smart stated that, “The global health crisis which further compounded the fragile economic situation in Nigeria took its toll on households and corporate bodies as may be expected.
“Despite this difficult terrain, our company showed resilience and we were able to post impressive results. As we look forward to the future, we are confident that more than ever before, our goal of industry leadership is within reach.”
