Despite the unfriendly operating environment, NEM Insurance plc has announced a gross premium income of N8.9 billion for the year ended December 31, 2013.
Adewale Teluwo, chairman of the company, addressing shareholders at the 44th yearly general meeting of the company held in Lagos, said: “The performance of the company during the year under review was good even though not as impressive as that of the previous year.”
According to him, a gross premium of N8.9 billion was generated by the group in the year under review, while the premium for the preceding year was N9.65 billion, a decline of 7.5 percent. This was majorly due to the effect of the enforcement of the policy of ‘no premium no cover.’
This policy has totally erased outstanding debts from the books of insurance companies, and its full effect shall be more pronounced in subsequent years. The projection for the following year shall definitely be better, according to the firm.
The gross premium recorded by the parent company was N8.3 billion, while that of the preceding year was N9.3 billion, a decrease of 10.7 percent. Investment income generated by the group was 62 percent more than that of the preceding period. The contribution of the parent company to this income was 53.8 percent.
Claims paid during the period rose by 4.6 percent as a result of the big claims that occurred during the year under review, while that of the parent company was just 3 percent more than that of year 2012. The claims ratios were 34.4 percent and 35.9 percent for the group and parent company, respectively.
The other operating and administrative expenses recorded by the group was 19.5 percent more than that of the previous year, while the parent company recorded an increase of 16.5 percent over the preceding period.
The group’s profit before tax for the year under review was 544 million, a decrease of 18.2 percent from the preceding year, while that of the parent company was N506.9 million, a decrease of 20.5 percent from the previous year.
Modestus Anaesoronye
