NEM insurance achieves 249% profit increase

By Esther Agbo

NEM Insurance has announced a remarkable 249     percent surge in its profit before tax for 2023, escalating from N5.5 billion in 2022 to N19.2 billion.

In a statement made by the Managing Director, Andrew Ikekhua, he attributed the profit surge to the company’s robust financial health and effective business strategies, which allowed it to excel despite challenging economic conditions.

Additionally, NEM Insurance saw an 89 percent increase in gross premium, reaching N62.7 billion, up from N33.4 billion in 2022. The company also reported significant growth in total assets and shareholders’ funds, with assets rising by 68 percent from N44bn in 2022 to N74 billion in 2023 and shareholders’ funds increasing by 44 per cent from N27bn to N39 billion.

Ikekhua highlighted that the Global Credit Rating Agency of South Africa had upgraded NEM Insurance’s financial strength rating from AA- to AA with a stable outlook, reflecting the company’s strong financial capacity and improved brand acceptability. This upgrade is expected to enhance their chances of securing more corporate business.

He said, “During the year, the Global Credit Rating Agency of South Africa upgraded our financial strength from AA minus to AA with a stable outlook. This new rating indicates our strong financial capacity to meet our obligations and plan big in the market.

“It also improves our brand acceptability with better chances of winning more corporate businesses. As part of our corporate strategy, five new retail products were developed and deployed into the market after NAICOM approval.”

Chairman of NEM Insurance, Tope Smart, emphasised the company’s commitment to human capital development, noting that over 96 per cent of the workforce participated in various training programs, both locally and internationally, to improve job performance.