NEM Insurance Grows Profit by 224.5 Per cent

Ebere Nwoji

NEM Insurance Group said it achieved 224.5 per cent increase in its profit before tax (PBT), growing from N544.5 million December 31, 2013 to N 1.77 billion in 2014.

The group also grew its gross premium from N 8.9 billion to N9.8 billion, representing 10.1 per cent growth.

For the NEM Insurance parent company, the gross premium grew from N 8.3 billion to N 9.4 billion showing 14.4 per cent increase.

Chairman of the company, Chief Adewale Teluwo, who disclosed this while addressing shareholders at the 45th Annal General Meeting of the company held in Lagos, said the company was able to achieve the positive result despite the decline experienced by Nigeria’s economy towards the end of 2014 financial year.

He said NEM Insurance group, during the period generated N67.8 million investment income against N445 million generated in the preceding year representing an increase of 36.6 percent.

He said the parent company contributed N560.3 investment income over last year’s figure of N397 million.

According to Teluwo, NEM Insurance Group paid total claims amounting to N2.66 billion showing 13.5 per cent decrease from total claims of N 3.07 billion paid by the company the previous year.

He attributed the decline in the quantum of claims paid by the company to good underwriting and good claims procedure put in place by the firm.

He said the parent company, during the period, reduced its claims payment by 13.4 percent from N2.97 billion to N2.57billion.

He said financial asset of the group increased by 20.4 per cent while total assets and total equity increased by 11.5 percent and 24.9 per cent respectively.

Teluwo said given the group’s positive performance, a dividend of six kobo per share was recommended for the shareholders by the board, explaining that the board was working on building a reasonable reserve to enable thecompany increase its share in oil and gas business.