NEM Insurance PLC Posts 23% Growth In Profit After Tax in 2022
Mr Tope Smart, Group Managing Director/CEO
NEM Insurance PLC has announced a 23 percent growth in its Profit After Tax (PAT) to N5.5 billion in 2022 as against N4.5 billion recorded in 2021.
During the period under review, the Company paid a total of N12.3 billion as claims to policyholders, in 2022, which represents an increase of 7.9 percent over that of the preceding period which was N11.6 billion.
The gross claims ratio for 2021 stood at 42.0 percent whereas that of 2022 was 37.4 percent decrease of 5 percent while net claims paid for the year was N7.6 billion, against the preceding year was N5.5 billion; resulting in an increase of 38 percent.
The Net Claims ratio was 22 percent for the year under review and 19.9 percent for 2021; an increase of 2.1 percent.
Speaking at the Company’s 53rd Annual General Meeting held in Lagos, the Company Chairman, Dr. Fidelis Ayebae stated that the company posted a Gross Premium Written (GPW) of N33.3 billion in 2022, an increase of 20 percent over the previous year’s turnover of N27.8 billion.
The Company investment income, according to him went up by 37 percent to N1.6billion in 2022 from N1.1billion in 20201, while management continues to prioritize efficiency, management expenses shrank to N3.4billion in 2022 from N4.2billion in 2021, representing a decrease of 19 percent.
The group’s Earnings Per Share for the year under review was 1.08 while that of the previous year was 0.88; an increase of 0.28 percent.
The Parent Company’s EPS for 2022 and the preceding year has the same percentage increase.
Following its outstanding performance, the board recommended a dividend of 30 kobo per =N=1 ordinary shares amounting to N1,504 943,330, payable to shareholders subject to deduction of withholding tax at the appropriate rate.
In the area of human capital, he said ” In line with the company’s policy of enhancing the knowledge of members of staff and improving their skills on the job, the management sent over 90 percent of the staff on various trainings, workshops and conferences during the year under review. Good work tools and a working environment were also provided for better performance. Also, deserving, members of staff were promoted during the year.”
On future prospects, he said “As part of our strategy for expansion, NEM Health Ltd was incorporated in 2022 and commenced operation in 2023. Also, our plan to have a viable life company stands.
The Group Managing Director/ CEO, Tope Smart, noted that “despite the challenging operating environment, we achieved the above results due to our determination and the robust strategies put in place.
“It is also worth noting that these results would not have been achieved but for the massive support and loyalty of our clients and brokers who have been there for us over the years. We owe them a debt of gratitude.
He said ” Our appreciation also goes to our Board for providing us with a very conducive environment and allowing us to benefit from their wealth of wisdom and experience which have been helpful at crucial times on this journey. We remain very grateful. I am particularly proud of our staff who have remained very focused, dogged, and unwavering despite the difficult operating environment.”
