NEM Insurance grows 2023 revenue by 66% to N52.1bn

Underwriting firm, NEM Insurance Plc (The Group) has grown its insurance revenue to N52.1 billion at the end of 2023 financial year, from N31.4 billion in 2022, indicating a 66 percent increase.

Tope Smart, chairman of NEM Insurance Plc speaking at the Company’s 54th Annual General Meeting in Lagos said the company continued to deliver value to customers, shareholders and other stakeholders alike despite volatility in the operating environment.

Speaking further on the performance, he said The Group’s Profit before Tax (PBT) for the year under review was N18.9 billion in 2023 full year as against N5.5 billion recorded in 2022 , an increase of 244 percent, whereas the parent company’s PBT was N19.2 billion for 2023 and N5.5 billion for 2022, an increase of 249 percent.

From the profit, the shareholders received a dividend pay-out of 60 kobo per one ordinary share amounting to N3.01 billion. This did not only excite shareholders, but they appreciate the steady growth of the company while applauding board and management for their doggedness despite the challenges in the economy.

In the year under review, investment income saw on increase of 106 percent, moving from N1.6 billion in 2022 to N3.3 billion in 2023.

Committed to meeting its claims obligation, Smart announced that the company paid Claims amounting to N15.7 billion as against N12.3 billion in 2022, an increase of 28 percent over that of the preceding year, while the claims ratio for 2023 was 30 percent that of 2022 was 40 percent, a decrease of 25 percent.

Smart while announcing the Group has established a subsidiary called NEM Health Limited, he said efforts were in top gear to secure a license for life business. “As part of our expansion strategy, our plan to set up a viable life assurance company is in progress”.

Andrew Ikekhua, managing director/CE, NEM Insurance Plc in his statement during the AGM said year 2023 remains a historical milestone in NEM Insurance Plc.

“Your company did not only meet her target for the year but rose to the number one position in general business insurance market in Nigeria.”

According to him, all the performance indices for the year came positive. “The company recorded a growth rate of 89 percent in gross premium written which amounted to N62.7 billion against N33.4 billion recorded in 2022.”

Our total assets and shareholders’ fund recorded a leap of 64 percent and 63 percent respectively, as total assets grew from N44 billion to N74 billion, a 64 percent increase and while shareholders’ fund grew from N27 billion to N39 billion, 63 percent increase.

“As part of our corporate strategy, five new retail products were developed and three were deployed into the market after NAICOM approval. More attention was given to the digital distribution of our commoditized products through various business partnerships.”

Going forward, we shall continue to press home our strategic objectives while leveraging on our strength built on reputation, branch acceptability and strong financial capacity, Ikekhua said.