NEM Insurance pays N7.6bn claims in 2022

NEM Insurance Plc paid N7.6 billion to its claimants for the finiancial year ended Dec. 31, 2022.

Dr Fidelis Ayebae, Chairman, NEM Insurance, said this at the company’s 53rd Annual General Meeting (AGM) on Thursday in Lagos.

Ayebae said the figure represented a growth of 38 per cent when compared with N5.5 billion paid in 2021.

He said the net claims ratio for the year under review was 22 per cent and 19.9 per cent for year 2021, representing an increase of 2.1 per cent.

He stated that gross claims incurred during the year under review was N12.3 billion from N11.6 billion in 2021, indicating an increase of 7.9 per cent.

The gross claims ratio for year 2021 stood at 42.0 per cent, while that of 2022 was 37.4 per cent, which is a decrease of five per cent.

The chairman disclosed that the gross premium recorded by the firm was N33.3 billion against N27.7 billion in 2021, an increase of 20 per cent.

Ayebae stated that an increase of 37 per cent was achieved on the investment income of the firm, putting the amount for 2022 at N1.5 billion, while N1billion was recorded in 2021.

The group’s profit before tax for the year under review was N5.5 billion in contrast with N4.5 billion in 2021, indicating an increase of 21 per cent.

Ayebae said that the company recommended a total dividend of N1.50 billion representing 30k per ordinary share to its shareholders, subject to deduction of withholding tax at the appropriate rate.

He noted that as part of the insurance firm’s strategy for expansion, NEM Health Ltd., was incorporated in 2022 but commenced operations in 2023.

Ayebae said that plans to have a viable life company was still underway.

The chairman noted that 2022 which was a pre-election year, associated with risk of insecurities, uncertainties, incessant fuel scarcity, price hike and high rate of inflation, posed a lot of challenges during the year under review.

Ayebae said, amidst all the challenges, the company performed excellently in 2022 as shown in its financial statement.

In his remark, the company’s Group Managing Director, Mr Tope Smart, said a review of the insurers operation showed that the company recorded an impressive performance in 2022.

Smart stated that all the underwriting company’s performance indices improved compared with the year 2021 results.

He noted that in spite of the global and local challenges which affected economic activities, the firm was able to post good results due to its resilience and strategies formulated and implemented by its board and management.

“Notwithstanding the challenging operating environment, we achieved the above results due to our determination and the robust strategies put in place.

“These results would not have been achieved but for the massive support and loyalty of our clients and brokers who have been there for us over the years. We owe them a debt of gratitude.

“I am particularly proud of our staff who have remained very focused, dogged and unwavering despite the difficult operating environment.

“To our ever-supportive shareholders, we appreciate you for your love and uncommon support over the years,” he added.