By Omobola Tolu-Kusimo
NEM Insurance coverage Plc’s Gross Premium has grown by 13 per cent within the 2019 monetary yr to N19.eight billion from N15 billion in 2018.
The corporate’s internet premium additionally elevated by 18 per cent from N10.6 billion in 2018 to N12.6 billion in 2019.
The corporate’s efficiency reveals that shareholders fund rose from N12.four billion in 2018 to N14.1billion in 2019.
On the opposite internet claims paid throughout this era elevated by 54 per cent from N2.5 billion to N3.9 billion whereas funding revenue decreased by eight per cent from N953 million to N878 million because of low yield on investments.
The massive claims paid through the interval had a destructive influence on the underside line as revenue earlier than tax got here down from N2.6 billion to N1.9 billion, a lower of 29 per cent.
Nevertheless, revenue after tax elevated from N2 billion to N2.four billion, a rise of 18 per cent because of deferred tax asset. From an affiliate in Ghana, the corporate achieved a 1 per cent improve in revenue from N21.2 million in 2018 to N21.four million in 2019, with plans to enhance on this space subsequent yr.
Talking on the just-concluded Annual Common Assembly of the corporate, the Group Managing Director, Mr. Tope Good mentioned they have been capable of document some modest achievements in most of our indices, regardless of the tough working atmosphere, coupled with elevated claims profile because of some very large claims paid through the interval underneath assessment.
He defined that the claims put strain on their backside line, and efforts have been being made to make sure we enhance on these numbers. He additional acknowledged that through the yr, the Nationwide Insurance coverage Fee (NAICOM) elevated the minimal paid up capital of insurance coverage and reinsurance corporations and have been initially given as much as 30th June 2020 to conform.
He mentioned: “This era was subsequently modified to 31st December 2020 because of strain from operators. We’re working laborious to make sure compliance earlier than the due date.
“Our affiliate in Ghana, RegencyNEM Insurance coverage, is equally going by a recapitalisation as directed by the Nationwide Insurance coverage Fee, Ghana.
Nevertheless, they’ve as much as June 2021 to conform and we’re working in direction of complying with this new capital regime additionally,” he added.