Though the challenges to sustainable development was constant in 2021, NEM Insurance Plc took positive steps to come out even stronger for all stakeholders including claimants with a 26% surge over 2020 mark, and the company accommodated it with 12.5% decline in profit.
Rolling out the annual accounts, the board chairman, Dr. Fidelis Ayebae, placed the obligation to claimants at N11.6bn, an increase of 26% over previous payment of N8.4bn. The increase was attributed to huge claims from End SARS protests of 2020. However, he noted the end is not in sight yet as there are outstanding claims, while incurred but not reported claims (IBNR) remained unaccounted for.
The group profit after tax dipped in 2021 from N5.08bn to N4.44bn by 12.5%. The parent company PAT also declined from N5.07bn to N4.44bn, representing 12%.
However, there were increases of N3bn, N6.9bn and N4.5bn in the group’s financial assets, total assets and total equity respectively. Similarly, the parent company had increases of N2.9bn, N6.8bn and N4.5bn in financial assets, total assets and total equity respectively. The performance yielded a dividend of 22kobo per share. Earning per share dipped from 96k to 89k.
The company’s gross premium and net premium increased respectively from N22bn to N27.8bn at 26%; and N19.3bn to N15.8bn closing at 23%.It was also a plus for investment income registering 13% increase from N1bn to N1.13bn
In his assessment of the results, the Group Managing Director, Tope Smart, (pictured) said, “Despite difficult terrain, our company showed resilience and we were able to post impressive results.”
On the stalled recapitalisation exercise, Smart said the company had successfully complied with the first phase “by recapitalising our share premium and part of our retained earnings to bring our paid-up capital to N5.01bn.
Bracing confidently for the future NEM GMD said, “As we look forward to the future, we are confident that more than ever before our goal of industry leadership is within reach.”