N11.6 Billion Claims Paid By Nem Insurance Plc

N11.6 billion claims have been paid Nem Insurance Plc to its claimants in the 2021 financial period.

This was disclosed by Dr. Fidelis, the Chairman of NEM Insurance, during the company’s 52nd annual general meeting in Lagos recently.

He also said the company recommended a dividend of 22 kobo per ordinary share to be paid out of the profit for the year.

“While a gross claim of N11.6 million was incurred in 2021, that of 2020 was N8.4 billion, an increase of 26 percent,” he said, noting that its gross premium rose by 26 percent to N27.8 billion, from N22 billion generated in the preceding year, while net premium earned during the period under review rose to N19.3 billion, from N15.8 billion in 2020.

"N4.448 billion was the group’s profit after tax, from N5.084billion in the previous year, representing a decline of 12.5 percent", he added.

According to him, the company recorded a decline of 12 percent in profit after tax over the preceding period, from N5.07 billion in 2020 to N4.44 billion in 2021, due to a sharp decrease in fair value gain.

The chairman said, “There were increases of N3 billion, N6.9 billion, and N4.5bn in the Group’s financial assets, total assets, and total equity respectively.

“Also, the parent company had increases of N2.9 billion, N6.8 billion and N4.5billion in financial assets, total assets and total equity respectively.”

Despite the suspension of the recapitalisation introduced in the industry by the National Insurance Commission, he said the company was prepared because it had enough reserves to do so.

“As approved at the company’s EGM in 2020, a bonus was issued to existing shareholders in proportion to nine for 10 in 2021. You will recall that at the end of 2020 we had recapitalised up to N5.016 billion.”

Tope Smart, the Group Managing Director, Nem Insurance, said a review of its performance showed that all its indices came out positive during the period under review.

He also appreciated all its clients and brokers for their support over the years.