EM Insurance pays 6 kobo dividend despite harsh operating environment

Underwriting firm, NEM Insurance plc in the financial year ended December 31, 2015 paid out 6 kobo dividend to shareholders despite the harsh economic environment. This, according to the company was based on its commitment to continuously reward shareholders for the support and confidence they have in the company.

In the year under review, the Company recorded a gross premium income of N10.9 billion as against N9.8 billion in 2014, showing an 11 percent increase.

Investment Income also rose to N746.2 million during the year under review, while that of the preceding period was N607.8 million, an increase of 22.8 percent.

Claims paid during the reporting year was N3.96 billion, an increase of 34.6 percent 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 Company.

This increase in pay-out significantly impacted the firms’ bottom line as the Profit before Tax recorded declined by 66.1 percent over the preceding period while that of the Parent Company declined by 67.9 percent.

Aside the claims issue, increase in outstanding claims reserve for the period also led to the decline in the profit of the Group, the Company

The Group Financial Assets for the reporting period was increased by 16.8 percent over that of the previous period.

Adewale Teluwo, former chairman of the Company who retired effective March following NAICOM policy on tenure of non directors in his statement said “Although the performance of the reporting period was not as good as the previous one, the Board is recommending a dividend of 6 kobo per share. The standing proposition of the Board to maintain a reasonable reserve in order to increase the Company share in the lucrative Oil & Gas business still stands.

On future prospects, he noted that the focus should be to ensure that “we continuously and persistently provide excellent service to the insuring public as well as take insurance to the grassroots. This we intend to achieve by providing simple and affordable insurance products that would meet their needs.”

 

Modestus Anaesoronye