NEM Insurance records N10.9b premium
Notwithstanding the state of the country’s economy in the reporting period, NEM Insurance Plc has recorded good performance with gross premium increase of 10.8 per cent over the previous period; that is, N10.9 billion in 2015 while that of 2014 was N9.8 billion.
The parent company achieved an increase of 9.5 per cent over the preceding period, N10.3 billion was recorded for 2015 while in 2014 it was N9.4 billion.
The new chairman of the company, Fidelis Ayebae, who took over from Chief Adewale Teluwo, who has retired on completion of his tenure at the 46 yearly general meeting in Lagos, said though rates crashed to an average of four per cent, the group generated investment income of N746.2 million during the year under review while that of the preceding period was N607.8 million; an increase of 22.8 per cent. The income recorded by the parent company also shot up by 20.7 per cent over that of year 2014; that is, N676.4 million was generated in 2015 and N560.4 million in 2014.
According to him, it should however be mentioned that claims paid during the period increased significantly compared to the amount paid during the same period in 2014. Claims paid by the group during the reporting year, was N3.96 billion, an increase of 34.6 per cent over that of the preceding period which was N2.9 billion. This was as a result of one single huge claim of about N600 million paid out by the parent company. Thus an increase of 33.1 per cent was recorded over that of the previous period by the parent company. The figure for 2015 was N3.8 billion whereas that of 2014 was N2.9 billion.
He said “this increase significantly impacted our bottom line as the profit before tax recorded by the group for the reporting year declined by 66.1 per cent over the preceding period while that of the parent company declined by 67.9 per cent. Aside the claims issue, increase in outstanding claims reserve for the period also led to the decline in the profit of the group. Hopefully, this reserve would boost the profit for the next reporting period.”
He said also that the group financial assets for the reporting period was increased by 16.8 per cent over that of the previous period.