NEM offers investors 10kobo dividend on N13.4b gross earnings

An underwriting firm, NEM Insurance Plc, has declared a dividend of 10 kobo per share for its investors for the financial year ended 31, December 2017, as its gross earnings hit N13.4 billion.

The company’s Chairman, Dr. Fidelis Atebae, at the 48th yearly general meeting in Ibadan, Oyo State, said the dividend represents 25 per cent increase over eight kobo paid in 2016 financial year.For the company’s financial performance, he said profit before taxation for the period under review for the group and parent company grew to N3.09 billion and N3.08 billion, showing increases of 44.2 per cent and 41 per cent, compared to N2.15 billion and N2.19 billion achieved in 2016 respectively.

Gross premium rose by 24.7 per cent to N13.4 billion over the previous year’s N10.8 billion in 2016, while net premium also grew 15.2 per cent to stand at N9.8 billion in 2017, compared with N8.5 billion in 2016.Investment income also rose to N709.9 million in 2017, against N479.5 million reported in 2016, indicating an increase of 48.1 per cent.

The insurer also recorded impressive performances in its financial assets and total assets as both appreciated 47.7 per cent and 21.2 per cent for both the group and parent company over the preceding year; while improvements of 31.6 per cent and 31.3 percent were recorded in total equity for the group and parent company respectively.Earnings per share for the group during the year under review was 53 kobo, while that of the preceding year was 34 kobo, an increase of 52.7 per cent.

On the other hand, the earnings per share of the parent company was 52 kobo, an increase of 49. 5 per cent over that of the preceding year, which was 35 kobo.The Group Managing Director, Tope Smart, reaffirmed that despite the challenging competitive operating environment, the company’s focus on industry leadership remained unwavering.“One of the ways we are doing this is brand differentiation. We have continued to delight our numerous customers by providing them with unparalled services and solutions thereby consolidating our position with them.

“Our service delivery mechanism, which is anchored on core values of humility, integrity, discipline, excellence, empathy and courage, has helped us in no small measure in our brand differentiation initiative,” he said.According to him, the associate in Ghana, RegencyNem Insurance Ghana Limited, is riding on the synergy of the merger as the company is presently making waves in the Ghanian insurance industry, and is set to contribute significantly to our bottom line in the years ahead.”

On review of its performance, he said: “Our profit after tax increased from N1.8 billion in 2016 to N2.8 billion in 2017, an increase of 53 per cent. Our shareholders fund, which stood at N7.4 billion in 2016, appreciated to N9.7 billion in 2017, representing 32 per cent increase. Our balance sheet also has remained very healthy.“Notwithstanding the intense competition in the industry, we are very positive that with the very formidable structure we have in place, the future of this company is very bright. More than ever before, we are now better positioned to take advantage of anticipated opportunities that may arise in Nigerian insurance space.”