Over N12bn paid as claims, says NEM Insurance

The Chairman, NEM Insurance Plc, Dr. Fidelis Ayebae, has said the underwriting company paid N12.3bn to its claimants in 2022 financial year.

He disclosed this during the 53rd annual general meeting of the company in Lagos.

The chairman said, “The gross claims incurred during the year was N12.3bn; an increase of 7.9 per cent over that of the preceding period that was N11.6bn. The gross claims ratio for 2021 stood at 42.0 per cent whereas that of 2022 was 37.4 per cent, decrease of five per cent.”

According to the report he presented at the meeting, net claims paid for the year was N7.6bn, while that of the preceding year was N5.5bn; resulting into an increase of 38 per cent. The net claims ratio was 22 per cent for the year under review and 19.9 per cent for 2021; an increase of 2.1 per cent.

The Group’s profit before tax for the year under review was N5.5bn and N4.5bn in 2021, an increase of 21 per cent.

The chairman disclosed that the parent company’s PBT was N5.5bn for 2022 and N4.5bn for 2021, an increase of 21 per cent.

According to him, the position of the Group financial assets increased by 32.6 per cent while total assets and total equity improved by 19.9 per cent and 18.7 per cent respectively.

The gross premium recorded was N33.3bn, an increase of 20 per cent over the previous year’s turnover of N27.8bn. N22.1bn was earned in 2022, while N19.3bn was earned in 2021.

He disclosed that investment income rose by 37 per cent, while the income for 2022 was N1.5bn, and 2021 was N1.1bn.

The board during the year under review supervised the management’s efficiency that brought about a reduction in the management expenses from N4.2bn in 2021 to N3.7bn in 2022, he said.

The Group Managing Director, Tope Smart, said, “Notwithstanding the challenging operating environment, we achieved the above results due to our determination and the robust strategies put in place.

“It is also worth noting that these results would not have been achieved but for the massive support and loyalty of our clients and brokers who have been there for us over the years. We owe them a debt of gratitude.”