NEM Makes 113% Profit – Latest News From Nigeria, Nigerian Newspapers, Politics
By Omobola Tolu-Kusimo
Despite the challenges of FY2020, NEM Insurance Plc recorded naira 5.08 billion in profit after tax (PAT), an increase of 113% from 2019, which was naira 2.4 billion.
The underwriting company generated a gross premium of 22 billion naira against 19.8 billion naira the previous year, which represents an increase of 12 percent.
A net earned premium of N15.8 billion was also recorded during the period under review and a 25 percent increase over the previous year, which recorded N12.6 billion.
Although the commercial paper interest rate collapsed, the management of the company was proactive enough to take advantage of other investment opportunities to generate investment income of 1.004 billion naira compared to 878.2 million naira. Naira generated in 2019. This resulted in an increase of about 14.3 million. percent.
While a gross claim of 8.4 billion naira was incurred last year, that of 2019 was 7.3 billion naira, an increase of 15%.
Likewise, net claims expenditure of N6.05 billion incurred in 2020 was 53% higher than in the previous period, which recorded N3.9 billion. The net loss rate for the period under review was 27% against that of 2019, which was 21%.
NEM Chairman Dr Fidelis Ayebae, who spoke at the company’s 51st annual general meeting in Lagos, said the company’s performance remained consistent with upward progression.
He said the board recommends a dividend of 9 kobo per common share.
Speaking further on the company’s performance on financial assets, total assets and stocks, there were increases of 5.9 billion naira, 5.5 billion naira and 4.2 billion naira in financial assets, total assets and group equity.
In addition, the parent company recorded increases of 5.9 billion naira; 5.5 billion naira and 4.3 billion naira in financial assets, total assets and total shares.
Regarding earnings per share (EPS), Ayebae said the group’s EPS for the year under review was 0.96 kobo while that of the previous year was 45 kobo.
The group’s chief executive, Mr Tope Smart, said that at the start of 2020 the global economy had just recorded its 10th consecutive uninterrupted growth and economists expected this trend to continue for years, but within two months, those expectations were shattered due to the novel corona virus which was first discovered in China in December 2019.
He said: “This has led to the deepest global recession in generations. The International Monetary Fund (IMF) estimates that the world economy contracted by 4.4% in 2020, compared to a contraction of just 0.1% in 2009, when the world was last faced with a crisis. financial. To contain the spread of the virus, governments around the world have introduced various measures such as shutdowns which have further exacerbated the already dire economic situation.
“Locally, although the economy contracted 1.92% at the end of 2020 compared to growth of 2.27% in 2019, Nigeria was able to emerge from the recession against all odds. waiting. GDP grew 0.11 percent in the fourth quarter of 2020. While the economy contracted 6.1 percent and 3.6 percent in the second and third quarters, growth of 0.11 percent however was recorded in the fourth quarter, signaling are related.
“Despite the difficult terrain, our company has shown resilience and we have been able to post impressive results. “