“All hands must be on deck to take all our subsidiaries to greater height.” This was the rallying remark made by the Board Chairman, NEM Insurance Plc, Mr. Tope Smart as he announced a 66% increase in insurance revenue 2023 to shareholders. The company grew its revenue from N31.4bn to N52.1bn
Chairman Smart posed it as challenge to all that the 66% is not a limit but a performance that should propel more services that would earn higher revenue.
The underwriter’s obligation to policyholders, its first line of duty also increased by 28% as claims paid moved up from N12.3bn to N15.7bn. However, the claims ratio decreased in the year under review, it dipped from 40% to 30%.
The wagon of increase also accommodated investment income which climbed by 106%, the previous year mark was N1.6bn and closed in 2023 at N3.3bn.
Smart also said the group profit before tax was N18.9bn and N5.5bn in 2023 and 2022 respectively, an increase of 244%. The parent company’s PBT was N19.2bn for 2023, an increase of 249%.
The performance earned shareholders a dividend of 60k per N1 ordinary shares translating to over N3bn.
The MD/CEO Andrew Ikekhua in his adjunct address to shareholders cleared that the 2023 financial report has become the base year for IFRS 17 accounting method leading to substantial changes across aspects of insurance business such as operations, finance and actuarial practices disclosure and reporting.
In a concise report Ikekhua let all especially shareholders know that, “2023 remains a historical milestone in NEM Insurance Plc. Your 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% in gross premium written which amounted to N62.7bn against N33.4bn recorded in 2022. Our total assets and shareholders’ fund recorded a leap of 64% and 63% respectively. Our total assets and shareholders’ funds recorded a leap of 68% and 44% respectively. Total Assets grew from N44bn to N74bn while Shareholders’ fund grew from N27bn to N39bn.”
He adds further,” During the year, the Global Credit Rating Agency of South Africa upgraded our financial strength 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.”
