The Nigerian insurance industry is expanding and expects to exceed its projections as consumer confidence grows and operators adopt more technology. Previously, the industry’s growth prospects were hampered by low penetration levels due to a lack of priority and trust in insurance products, particularly life insurance, and a shortage of adequately skilled insurance underwriters.
However, some insurance companies, such as NEM Insurance, appear to be ahead of the game, with a 23% increase in net premium in 2021 and a market valuation of 31%.
One of the macro-environmental factors that may have benefitted the company is the government’s implementation of a framework comprising six compulsory insurance policies as well as funding life and non-life insurance companies created to boost the insurance industry and to improve the enforcement of the adoption of insurance.
The industry comprises approximately 58 insurance companies (14 life and 43 non-life and 2 reinsurance companies) with agents (individual and corporate bodies), brokers, surveyors, and third-party administrators. However, based on the market share and size, the companies directly competing with NEM insurance in Nigeria are Leadway, AIICO, Coronation Insurance, and AXA Mansard.
NEM Insurance Plc began operations in 1948 as an agency of Edward Turner & Co. In 1965, the company became a Nigerian branch of the London-based NEM General Insurance Association Limited and became incorporated in 1970 before being listed on the Nigerian Stock Exchange in 1989.
The company started by offering life and non-life insurance. After its recapitalization in 2007, it merged with Vigilant Insurance Company Ltd to transact all types of General Insurance.
With the successful registration and launch of its former subsidiary, NEM Insurance (Ghana) Limited, in May 2009, the company expanded its operations into the West African Sub-region.
Due to a recapitalization requirement, the subsidiary merged with Regency Alliance to form Regency NEM Insurance Ghana Ltd in September 2016. NEM Asset Management Limited, a new member, was also added to the brand in March of 2016.