Despite the challenging operating environment occasioned by impact of fuel subsidy removal and single exchange rate regime for over a year, increases in prices of goods and services, fuel pump price fluctuation and an unstable exchange rate, NEM Insurance Plc was able to break even achieving both top and bottom lines in its financial performance index in 2024.
Not overwhelmed by the volatile and challenging operating environment which posed a whole lot of national issues in 2024, the company continued to maintain its leadership position in the insurance industry posting insurance revenue of N97.9billion from N52.1billion in 2023, an increase of 88per cent over the previous year. Performances by the subsidiaries also witnessed an increase of 130.3percent from N3.3billion in 2023 to N7.6billion in 2024.
The Claims paid during the year was N24.9billion as against N15.6billion in 2023, an increase of 59.6percent over that of the preceding year. The Claims ratio for 2024 was 25.5percent while that of 2023 stood at 30percent, a decrease of 4.5percent while the management expenses increased from N5.2billion in 2023 to N8.5billion in 2024, representing a 63percent increases.
Mr. Tope Smart, the board chairman of the firm attributed this to heightened inflation and increased business growth during the financial year.
The Group’s Profit before Tax (PBT) was N33.7billion and N18.9billion in 2024 and 2023 respectively, an increase of 78percent while the Parent Company’s PBT was N33.5billion for 2024 and N19.2billion for 2023, an increase of 74percent.
The company paid a dividend of 100 kobo per N1 ordinary shares amounting to N5, 016,477,767.00, the approved at this Annual General Meeting, payable to shareholders and subject to deduction of withholding tax at the appropriate rate.
On human capital development, Tope Smart, the board chair noted: “In line with the company’s policy on human capital development, more than 97percent of our workforce attended various training courses both local and foreign to improve their skills and enhance their performance on the job.”
The boss stressed that as part of the company’s expansion strategy; the plan to set up a viable life assurance company is in progress and will be unveiled soon.
“We give glory to Almighty God who has consistently been our strength and helper. Our excellent and progressive performance is indeed commendable. Hence, I want to use this opportunity to appreciate the MD/CEO, Management, and entire members of staff for their dedication and hard work in achieving the set organizational goals. Also, the support from the Board members is highly appreciated.” He said.
Smart also appreciated the shareholders who have been consistent in their zest to add value to the growth of the company saying, “You are greatly appreciated.”