Nem Insurance Plc said its Gross Premium Written, GPW, grew by 13 percent to N19.8 billion in 2019 financial year from N15 billion in 2018.
Managing Director/Chief Executive Officer of the company, Mr. Tope Smart who disclosed this to shareholders at the company’s 50th annual general meeting said that net premium also increased by 18 percent to N12.6 billion in 2019 from N10.6 billion in 2018.
He said that shareholder’s funds also increased to N14.1 billion in 2019 from N12.4 billion in 2018 even as net claims paid during the period increased by 54 percent to N3.9 billion from N2.5billion, while investment income decreased by eight percent to N878 million from N953 million due to low yield on investments.
According to him, the huge claims paid during the period had a negative impact on the bottom line as profit before tax came down from N2.6 billion to N1.9 billion, a decrease of 29 percent.
However, profit after tax increased from N2 billion to N2.4 billion, an increase of 18 percent due to deferred tax assets.
He said, “With a very strong foundation and brand reputation, we are well-positioned to move to the next level even as we continue to delight all our stakeholders.”
Besides Nem Insurance growing GPW, also speaking at the AGM, Chairman of the company, Dr. Fidelis Ayebae said that the company has been working diligently to assess the potential risks posed by COVID-19 to its business on an ongoing basis and to realign its strategies accordingly.
He said: “Notwithstanding that the company remains well-positioned and it’s business strong, given the unprecedented circumstances and current market environment, the company has adopted policies which are prudent at this time to grow its market share by leveraging extensively on its robust technology infrastructure and maintain a healthy balance sheet.”