Nem Insurance Plc disbursed N11.6bn to its claimants in the 2021 financial period. The Chairman of NEM Insurance, Dr. Fidelis Chairman, revealed this during the company’s 52nd annual general meeting in Lagos.
He also said the company suggested a dividend of 22 kobos per ordinary share to be paid out of the profit for the year.
“While a gross claim of N11.6bn was incurred in 2021, that of 2020 was N8.4bn, an increase of 26 per cent,” he said.
He commented that its gross premium rose by 26 percent to N27.8bn, from N22bn generated in the preceding year, while the net premium earned during the period under review rose to N19.3bn from N15.8bn in 2020.
He added that the Group’s profit after tax in the year under review was N4.448bn, from N5.084bn in the previous year, representing a reduction of 12.5 percent.
He said the parent company recorded a decline of 12 percent in profit after tax over the preceding period, from N5.07bn in 2020 to N4.44bn in 2021, due to a sharp decrease in fair value gain.
The chairman said, “There were increases of N3bn, N6.9bn, and N4.5bn in the Group’s financial assets, total assets, and total equity, respectively.
“Also, the parent company had increases of N2.9bn, N6.8bn and N4.5bn in financial assets, total assets and total equity respectively.”
Despite the suspension of the recapitalization introduced in the industry by the National Insurance Commission, he said the company was prepared because it had enough reserves to do so.
He said, “As approved at the company’s EGM in 2020, bonus was issued to existing shareholders in proportion to nine for 10 in 2021. You will recall that as at the end of 2020 we had recapitalised up to N5.016bn.”
The Group Managing Director, Nem Insurance, Mr. Tope Smart, said a review of its performance showed that all its indices came out positive during the period under review. He expressed gratitude to all its clients and brokers for their support.
