WED, JUNE 26 2019-theG&BJournal-NEM Insurance Plc closed FY 2018 with an impressive gross premium of N15.04 billion with Net claims paid for the year totalling N2.6 billion compared to the N1.8 billion from previous year, an increase of 43.2 per cent.
A total dividend of N686.47 million was paid for the financial year ended Dec.31, 2018 prompting shareholders into elation during the company’s 49th Annual General Meeting (AGM) in Lagos Tuesday. The dividend translated to 13k per share.
Gross claims incurred during the period was N6.01 billion, an increase of 20 per cent compared with N5.01 billion in 2017 while the gross claims ratio for 2018 stood at 40.0 per cent whereas that of 2017 was 37.4 per cent, an increase of 2.6 per cent.
Speaking during the AGM, Mr Sunny Nwosu, Founder, Independent Shareholders Association of Nigeria, praised the company for the dividend which he said was paid in spite of challenging operating environment.
‘’The company’s dividend policy is encouraging despite challenges in the economy,’’ he said while urging the company to ensure the trend is sustained in the years ahead.
Nwosu also urged the National Insurance Commission (NAICOM) to review its stance on recapitalisation by extending the deadline between two to five years. Mrs Bisi Bakare, National Coordinator, Pragmatic Shareholders Association of Nigeria, said the recapitalisation should not be done in a haste.
Bakare said that shareholders lost most of their investments during the banking consolidation and could not afford to suffer again.
Mr Tope Smart, the Group Managing Director, told the shareholders that the company is currently engaging NAICOM on recapitalisation modalities. Smart, who is also the Chairman, Nigeria Insurers Association, said they were engaging the commission to ensure that all members met the deadline.
He said that the company was set for new heights and enhanced dividend payment to shareholders.
“With a strong reputation built over the years, coupled with a very strong brand in the insurance industry and robust financials, the future of the company looks very exciting. We are determined to take advantage of the opportunities we have in order to take our company to the next level,” Smart said.
He noted that the company had maintained its focus in the industry and would continue to increase market share despite the difficult operating environment.
“From about five per cent market share, we now control close to seven per cent market share of non life business. We are determined to improve on this figure. Our associate in Ghana Regency Nem Insurance is expanding its operations into major areas in Ghana.This will lead to more income for the company and ultimately impact its bottom line in the nearest future,” Smart told the eleated shareholders during the AGM.
Dr Fidelis Ayebae, the company’s Chairman, spoke to the company’s capacity building programme during the AGM and informed the shareholders that over 90 per cent of the staff were sent on training during the period.
He said this was in line with the company’s policy of ensuring enhancement of knowledge of members of staff and improving their skills on the job.
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