Nem Insurance: Gross Premium Income, others boost profit
By Philemon Adedeji
Nem Insurance Company (Nigeria) plc, a listed Company on the Nigerian Exchange Limited (NGX) that offers all classes of life and non-insurance products to the personal and corporate sectors in Nigeria, in its audited financial statement submitted to the Nigerian Exchange Limited (NGX), the group delivered all-round impressive performance across its major business line to maintain its position as one of the leading insurance company in the Country.
Specifically, the group Gross Premium Written (GWP) increased impressively to a remarkable 20 per cent from N27.9 billion accounted at the end of 2021 from N33.364 billion achieved at the end of 2022 financial year, driven by customers satisfaction and improvement in digital transformation that comes with insurtech, while the gross premium Income, (GPI) rose marginally by 18 per cent to N31.433 billion in the current year 2022 from N26. 545 billion in prior financial year 2021
Absolutely, From the profit and loss figures, the group declared N5.439 billion gain Profit after tax (PAT) on 2022 from N4.432 billion gain Profit after tax in 2021, the growth in Profit was driven by 18.4 per cent increase in gross premium income to N45.9 billion in 2023
from the released statement under the floor of Nigerian Exchange Limited (NGX), the group Profit before tax (PBT), hits N5.5 billion in 2022 financial year, representing an increase of 21.1 per cent from N4.5 billion in the preceding year.
Fee and commissions on insurance contracts grew by 7.3 per cent to N1.562 billion, while Claims expenses recovered from reinsurers stood at N21.247 billion compared to N17.960 billion a year prior.
Nem Insurance Plc has generated Net premium Income of N22.150 billion for the financial year ended December 31, 2022, indicating an increase of 15 per cent when compared with N19.306 billion achieved in 2021.
The group Net underwriting income gained nearly 14 per cent to N23.7 billion in current year 2022 from N19. 3 billion in the preceding year, while Underwriting profit declined by 11.2 per cent from N6.995 billion in 12 months of 2021 to N6.208 billion in 12 months of 2022, the decline in underwriting profit caused by huge claim and disproportionate expenses.
Underwriting expenses reported for the period gained almost 20 per cent to N9.9 billion in 12 months of 2022 from N8.204 billion in twelve months of 2021, while Management expenses suffered a declined of 10.7 per cent from N4.195 billion in 2021 FY to N3.743 billion in 2022 FY, the drop in management expenses caused by high expenses which leads to accumulation of huge losses.
During the period under review, the group closed 2022 financial year with positive 1.08 Kobo Earnings Per Share (EPS) as against 0.88 Kobo in preceding year, indicating a marginal difference of 23 per cent year-on-year.
The Vice Chairman of Highcap Securities Limited, David Andori commented that NEM’s full year result showed good growth in income. They were able to match increase in liabilities with increase in assets. The result shows that the company is in good state of financial health.
BALANCE SHEET ON IMPRESSIVE POSITION
In the audited financial results ended December 31st, 2022, the group total assets, total equity as well as total liabilities are on impressive position
However, Nem Insurance grew its assets by a decent 20 per cent to N45.9 billion in full year 2022 from N38.3 billion accounted in the corresponding period.
The breakdown under total assets showed cash and cash equivalents which amounted to N8. 878 billion in FY 2022, an increase of 12 per cent year-on-year from N7.895 billion in the corresponding year
As a result the group generated higher interest from trade receivable which rose by 49 per cent year-on-year, also property, plant and equipments increased by 2.4 per cent y/y, while investment on subsidiary added 6.3 per cent year-on-year.
Total liabilities reported for the period stood at N18.7 billion, reflecting a marginal increase of 22 per cent from N15. 347 billion achieved in FY 2021, while Total equity gained a 19 per cent from N22.909 billion accounted in prior financial year 2021 to N27.199 billion achieved in full year 2022.
The management of Nem Insurance has announced a final dividend of 30 Kobo per one Naira Ordinary Share, subject to appropriate withholding tax and approval will be paid to shareholders whose names appear in the Register of members at the close of business on Friday, 28th of April 2023
ABOUT NEM INSURANCE
NEM Insurance Company (Nigeria) Plc offers all classes of life and non-life insurance products to the personal and corporate sectors in Nigeria.
Personal products include travel, motoring, professional indemnity, goods in transit and fire and special perils.
Products for small-to-medium businesses include cover for burglary, product liability, fidelity guarantee, personal/group personal accident, travel, money and motor insurance. Corporate products include cover for general business, marine, aviation, oil and gas, engineering, bonds and motor insurance.
NEM Insurance Plc was established in 1948 as an agent for Edward Turner & Co.; became a Nigerian branch of NEM General Insurance Association Limited of London in 1965; and merged with Vigilant Insurance Company Limited to transact all classes of general insurance.
The company has expanded its operations into the West Africa sub-region in 2009 through its subsidiary NEM Insurance (Ghana) Limited which subsequently merged with Regency Alliance to form Regency NEM Insurance (Ghana) Limited in 2016. The company’s head office is in Lagos, Nigeria.
