NEM Insurance announces N4b premium income
A net premium income of N3.7 billion was recorded in 2008 as against N2.5 billion generated in 2007.
Also, investment income posted an increase of 63.9 per cent. The sum of N147.3 million was earned in 2008 compared with the sum of N89.9 million in 2007. Profit before tax had an increase of 12 per cent over the preceding year, that is, while N526.9 million was achieved in 2008, the sum of N470.7 million was recorded in 2007.
The Chairman of the company, Chief Adewale Teluwo, addressing shareholders at the 39th yearly general meeting in Lagos, attributed the impressive result for the year to the determination and renewed vigour on the part of the management to ensure that NEM is properly positioned in the insurance industry.
According to him: “The strict policy put in place by the management to reduce administrative expenses yielded fruit as a meagre increase of 16.4 per cent was recorded over the figure of N513.4 million in 2007. That is, only the sum of N597.4 million was expended in 2008.”
He explained that the claim of N713.7 million incurred in 2008 was 61.1 per cent more than that of 2007 which was N443.1 million, while the claims ratio for the year under review was 19.1 per cent.
Besides, due to the crunch that affected the capital market, there was serious diminution of value of shares, hence total investment and total assets reduced by 17.5 per cent and 3.1 per cent respectively over the preceding year 2007 while shareholders fund improved by 3.1 per cent.
There was also an impressive increase of 31.8 per cent on earnings per share (EPS), while it was eight kobo in 2007 that of the period under review was 11 kobo.
As a result, the payment of dividend of five kobo per share was approved and effected. The board is recommending the declaration of a dividend of four kobo per share for 2008 financial year.
Also, the Group Managing Director/CEO, Mr. Tope Smart told The Guardian after the meeting that in line with the company’s expansion strategy: “We were given an operating license in December last year to commence insurance business in Ghana. I am happy to report that we have started operation. Though we intend to established our presence in more countries in order to take advantage of available opportunities in line with our long term strategic plan, our focus is to monitor changes in the global economy in the best interest of our shareholders.”
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