Easton Acquisitions Raises Stake in NEM Insurance Plc

Goddy Egene

An investment company, Eaton Acquisitions Limited has increased its stake in NEM Insurance to nine per cent, after announcing the acquisition of four per cent of the insurance company.

Eaton is seeking to acquire 10 per cent of the insurance company. The latest acquisition puts it within a distance of its target.

Commenting on the development the development, Managing Director of Eaton Acquisitions Limited, Olaleye Adeyinka said:”There is no better option in the market from the perspective of effective leadership, strategic opportunities and reforms for growth in the industry, broad sharing holding base that engenders good corporate governance, and a network of current and potential shareholders for enhanced business development.”

“We can’t say much about the strategic vision of the company yet as it is in the purview of management and the board, but we have unalloyed confidence in both organs of the company’s governance.”

According to the investors, they increased their stakes in the company because it offers strategic opportunities and growth.

“We intend to acquire more shares until we meet the mandate of our board to acquire 10 per cent of the company’s shares,” Olaleye added.

Although the Eaton boss expressed confidence in the ability of current NEM’s leadership, he said his company is desirous of gaining board representation in view of its dominant shareholding stake in the company.

NEM Insurance Plc recently announced a 20.7 growth in its profit before tax (PBT) for the half year ended 30 June 2018. PBT of the insurance company grew from N1.4 billion in June 2017 to N1.7 billion in June 2018 on account of a 12 per cent increase in gross premium written and a 62 per cent decline in claims expenses.

The insurance firm reported profit after tax of N1.5 billion, up from N1.2 billion recorded in the corresponding period of 2017. Other highlights of the results indicated a 10 per cent growth in underwriting profit of N2.7 billion in the period under review as against N2.5 billion in the corresponding period of 2017.

The insurer’s balance sheet shows total assets growth of 10 per cent from N17 billion at the beginning of 2018 to N19 billion as at the period under review.

The company had paid a dividend of 10 kobo per share for the full year ended December 31, 2017. This followed a jump in profit before tax by 44.2 per cent to N3.094 billion, compared with N2.14 billion in 2016.