NEM Insurance Announces Dividend Payout
NEM Insurance Plc at its 48th annual general meeting(AGM) held in Ibadan ,Oyo State recently announced 10 kobo dividend per share to its shareholders for the financial year ended December 31st, 2017. The company’s board said this follows what it described as impressive performance recorded by the company during the period.
Addressing shareholders at the AGM , Chairman of NEM Insurance, Fidelis Ayebae, said the 10 kobo dividend payout this year represents 25 per cent increase from eight kobo dividend paid by the company in 2016 financial year.
Speaking on the other financial performance of the company, Ayebae said premium of N13.4 billion was generated by the company for the period ,representing increase of 24.7 per cent over the N10.8 billion in the previous year.
He said net premium earned increased by 15.2 per cent , adding that the figures for 2017 and 2016 were N9.8 billion and N8.5 billion respectively
“There was an increase of 48.1 per cent of investment income of N709.9 million in 2017 over that of 2016 of N479.5 million. Claims expenses incurred during the year was N1.78 billion which was an improvement of 33.2 per cent. The absolute figure for 2016 was N2.7 billion. The gross claims ratio for 2017 stood at 37.4 per cent, a slight improvement of one per cent over the preceding period which was 37.7 per cent. The net claims ratio was 18.2 per cent for the year under review and 31.4 per cent for the preceding year, an improvement of 42 per cent.The improvement in the ratio was as a result of the good recovery made from our reinsurers,” Ayebae explained.
According to him, during the period under review, there were increases of 26.2 per cent and 28.2 per cent in management expenses for the group and parent company respectively, adding that in 2017, the figures for the group and parent company were N2.98 billion and N2.96 billion while in 2016 the figures were N2.36 billion and N2.31 billion respectively.
The NEM Insurance boss said profits before tax (PAT) for the period under review for the group and parent company stood at N3.09 billion and N3.08 billion with increases of 44.2 per cent and 41.0 per cent respectively.