By Favour Nnabugwu

NEM Insurance Plc has  announced a 26 percent increase in it’s claim  from N8.4 billion in 2020 to N11.6 billion claims in 2021, representing a 26 percent increase in the period under review

The Chairman of the foremost underwriting firm, Dr. Fidelis Ayebae, claims paid translated to 26 per cent growth from N8.4 billion paid in 2020, stressing that the net claims expenses of N5.6billion incurred in 2021 was 9 per cent lower than that of the preceding period, which recorded N6.05 billion and that the net claims ratio for the period under review was 20 per cent as against 27 per cent in 2020 due to good claims recovery during the period under review.

Similarly, the insurance firm, he said witnessed a 26 per cent jump on the gross premium from N22billion it generated in its 2020 financial year to N27.8 billion in its 2021 financial year end.

He submitted that the net premium earned during the period under review was N19.3billion and 23 per cent increase over the preceding period of 2020 which recorded N15.8 billion.

Ayebae at the 52nd Annual General Meeting (AGM) of the company yesterday in Lagos, also stated that there were increases of N3 billion, N6.9billion and N4.5 billion in the group financial assets, total assets and total equity respectively.

He stressed that the parent company had increases of N2.9 billion; N6.8 billion and N4.5 billion in financial assets, total assets and total equity respectively.

While the board recommended a dividend of 22 kobo per ordinary shares to be be paid out of the profit for the year, its group’s profit after tax (PAT) in the year under review was N4.4 billion compared to N5 billion in the previous year, representing a decline of 12.5 per cent. The parent company also recorded a decline of 12 per cent in PAT over the preceding period, hence, the PAT was N5billion in 2020 against N4.4billion in 2021. This, it said, is majorly due to sharp decrease in fair value gain.

The Managing Director of the company, Mr. Tope Smart, said the future of the company looks bright, noting that, “We shall continue to strategise and come up with initiatives that will add value to the interests of all stakeholders while we continue to rejig our processes from time to time as we strive towards excellence in all areas of our operations.”