NEM Insurance shareholders approve N1.5bn dividend payout
By Philemon Adedeji
The shareholders of NEM Insurance plc have unanimously approved N1.5 billion dividend payout which can be translated to 30 Kobo per N1 ordinary share.
The approval was made at the 53rd Annual General Meeting (AGM) held in Muson Center, Onikan Lagos on Thursday, all resolutions were passed.
Amidst all the challenges faced by the company in 2022 financial year, NEM Insurance performed excellently well such that Gross Premium recorded for the period stood at N33.3 billion, reflecting an increase of 20 per cent over the previous year’s figure of N27.8 billion. In the same vein, N22.1 billion was earned in 2023, while only N19.3 billion was earned on 2021.
The group’s Profit Before Tax (PBT) for the year under review was N5.5 billion and N4.5 billion in 2021, an increase of 21 per cent.
The group balance sheet remained well resilient and structure, as financial assets between 2021 and 2022 increased by 32.6 per cent, while total assets and total equity also improved by 19.9 per cent and 18.7 per cent respectively between two years.
The Group’s Earnings Per Share (EPS), for the year under review was 1.08 while that of the previous year was 0.88, an increase of 22.7 per cent.
The parent Company’s EPS for 2022 and the preceding year has the same percentage increase.
The Shareholders sincerely thanked the management of NEM Insurance for producing good results despite difficult economic downfall, we indeed very grateful and we appreciate the board for consistent in dividend payment and for ensuring generous reward to their shareholders at a very difficult time that no company find it difficult to maintain profitability.
Speaking at the (AGM), the Chairman of NEM Insurance, Dr. Fidelis Ayebae said, “As we are all aware, 2022 was a pre-election year which posed various risk of insecurities and presented diverse uncertainties. Political parties bombarded the entire nation with series of activities were in top gear, from party primaries to campaigns presidential and Gubernatorial elections with great expectations from the elected political office holders to fight corruption, improve security, tackle unemployment, diversify the economy, enhance climate resilience, and boost the living standards of Nigerians, the operating environment is expected to improve soon.
“So much is still being expected as the country’s economy recorded marginal decrease in the Gross Domestic Product (GDP) from 3.40 per cent in 2021 to 3.10 per cent at the end of 2022
“The Non-oil sector accounted for about 95 per cent of the GDP in 2022: Majorly on the back of accelerated activity in the service sector, the information and communications industry, especially the financial services sector, gained momentum in quarter two. The agricultural output witnessed tremendous boost during the year under review despite the climate change and flood in some part of the country
“The Oil and Gas sector performance recorded an increase in the crude oil price in 2023 to USD84.78 against $74.17 per barrel in 2021. However, the external reserve stood at $37.08 billion in2022 against $40.5 billion in 2021, a decrease of 8.7 per cent.”
He added that Nigeria in the emerging market, witnessed low foreign direct investment in the last few quarters of the reporting year following the security challenges in the country and around the globe: impact of Russian/Ukraine war, this further amplified by uncertainties regarding the general election foreign investors’ aversion towards Naira assets which reduced capital importation.
He concluded his speech by appreciating shareholders who have been consistent in their zest to add to the growth of the company are greatly appreciated as well. And to our loyal Brokers, Agents, Re-insurers and the numerous clients, you all greatly appreciated.
Also, the Group Managing Director/CEO of NEM Insurance, Tope Smart, commented that the unusual high cost of living, Russian’s invasion of Ukraine, and the lingering COVID-19 pandemic in parts of China heavily affected global economic activity.
“As expected, global growth shrank 3.3 per cent in 2022: from 5.5 per cent in 2021, the weakest growth Profit since 2001 expect for period of the global financial Crisis and the acute phase of the COVID-19 pandemic. The growth experience in2022 was driven mainly by Asian Economies, the Middle East , North Africa and Indian. Also, while inflation was very intense in most regions, it was less intense in Asian Economies which also benefited from the ongoing reopening dynamics.
“To control inflation, Central Banks Worldwide had to introduce tighter monetary policies while at the same time, they equally struggle to contain potential threats. Many Central Banks increased policy interest rates to contain rising inflation and exchange rate issues. The expectations are for these to continue in to the year 2023.”
He said on the local scene, the Nigerian economy rebounded after the difficult years of COVID-19, growing by 3.5 per cent in the first three quarter of 2023, while year on year growth stood at 3.52 per cent at the end of the 4th quarter of 2022.
“It is important to state that the recovery didn’t vividly impact the original Nigerians given that the main drivers of the growth – oil production services and services which which hardly benefit the ordinary man on the street in terms of jobs and business opportunities. For instance, the unemployment rate rose to about 33 per cent in 2022 while the number of Nigerians living in poverty rose by 35 million in the same year.”
He concluded his speech by appreciating the 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. Am particularly proud of our staff who have remained very focused, dogged, and unwavering despite the difficult operating environment.”
