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Underwriter offers shareholders N687 million dividend

By Bankole Orimisan
02 July 2019   |   3:50 am
NEM Insurance Plc has appropriated N686.46 million as dividend payable at 13 kobo per 50 kobo ordinary shares to its shareholders.

NEM Insurance

NEM Insurance Plc has appropriated N686.46 million as dividend payable at 13 kobo per 50 kobo ordinary shares to its shareholders.

The Chairman of the underwriting company, Dr. Fidelis Ayebae, who disclosed this at the company’s yearly general meeting in Lagos, noted that the payment is subject to deduction of withholding tax at the appropriate rate.

He said that the firm recorded a gross premium of N15.04 billion, an increase of 12.2 per cent over the previous year’s turnover of N13.4 billion an increase of 9.1 per cent, stressing that an increase of 34.2 per cent was achieved on investment income, as the income for 2018 was N952.8 million that of 2017 was N709.9 million.

On claims paid, the gross claims incurred during the year was N6.01 billion, an increase of 20 per cent over that of the preceding period at N5.01 billion, while the gross claims ratio for 2018 stood at 40 per cent, against that of 2017 at 37.4 per cent, an increase of 2.6 per cent.

Net claims paid for the year was N2.6 billion, while that of the previous year wasN1.8 billion; resulting into an increase of 43.2 per cent. The Net Claims ratio was 23.9 per cent for the year under review and 18.2 per cent for 2017; an increase of 5.7 per cent, he said.

He maintained that the board during the year under review supervised the management’s efficiency that brought about a reduction in the management expenses from N2.9 billion in 2017 to N2.8 billion in 2018

According to him, the Group’s Profits Before Tax (PBT) for the year under review was N2.69 billion and N3.09 billion in 2017, a decrease of 13.2 per cent, while the Parent Company’s PBT was N2.67 billion for 2018 and N3.08 billion for 2017 a decrease of 13.4 per cent.

“The positions of the Group’s Financial Assets decreased by 39.1 per cent while Total Assets and Total Equity improved by 27.7 per cent and 27.6 per cent respectively.

The Chairman noted that in line with the company’s policy of ensuring enhancement of the knowledge of members of staff and improving their skills on the job, the management sent over 90 per cent of the staff on various trainings, workshops and conferences during the year under review. Good work tools and working environment were also provided to enable better performances. Also, deserving, members of staff were promoted during the year, he added.

On future prospects, he noted that the company shall proactively begin to prepare to raise fund for increase of its issued share.