The Board of Directors’ suggested dividend of N3.009 billion for the 2023 fiscal year has been approved by NEM Insurance Plc’s shareholders.
 The 54th Annual General Meeting of the Company, which was held in Lagos, approved the move.
The dividend is equivalent to a payout to shareholders of 60 kobo for every N1 in common shares, deducted at the appropriate percentage of withholding tax.
Speaking to shareholders at the annual general meeting, Mr. Tope Smart, the group chairman, said that low foreign direct investment was caused by a number of factors, including insecurity, frequent power outages, fluctuating exchange rates, and high rates of inflation. Additionally, many manufacturing and telecommunications companies reported significant currency losses in 2023.
Financial outcomes
He pointed out that insurance income increased by 66% from N31.4 billion in 2022 to N52.1 billion in 2023.
Investment Income increased by 106% in comparison to 2022. In 2022, the entire income from investments was N1.6 billion, whereas in 2023, it was N3.3 billion.
The claims paid throughout the year, according to Smart, were N15.7 billion as opposed to N12.3 billion in 2022—a 28% increase over the previous year.
He pointed out that there had been a 25% drop in the claims ratio from 2022 to 2023, from 40% to 30%.
In addition, Smart stated that the impact of inflation and company expansion during the year under review caused a 43% increase in management expenses, which went from N3.7 billion in 2022 to N5.3 billion in 2023.
“The Group’s Profit before Tax (PBT) increased by 244% to N18.9 billion in 2023 and N5.5 billion in 2022 during the year under review.”
The Parent Company’s PBT increased by 249% to N19.2 billion in 2023 from N5.5 billion in 2022.
“Total Assets and Total Equity also improved by 68% and 43%, respectively, between 2022 and 2023, while the position of the Group Financial Assets increased by 160%,” he stated.
He pointed out that the Group’s EPS for the year under review was 260 kobo, compared to 108 kobo the year before. He also mentioned that the parent company’s EPS for 2023 was 264 kobo, compared to 108 kobo the year before.
High talent migration.
CEO and Managing Director Andrew Ikekhua stated that the nation had a significant level of talent movement, commonly known as “JAPA.”
He claimed that in 2023, the “Japa Syndrome” mostly impacted the banking, insurance, medical, and IT sectors.
Even though the National Bureau of Statistics reported that the unemployment rate was 4.2%, he pointed out that the country’s level of insecurity had increased due to a high wave of kidnappings, particularly in the northern states, illegal mining operations in the Northwest, banditry, unrelenting Fulani herdsmen, and farmer conflict.
“Despite economic challenges in 2023, the insurance industry grew by 4.82% year on year, according to the National Bureau of Statistics. The new automobile insurance premium, which was implemented by the National Insurance Commission (NAICOM) in December 2022, has gained full approval from the operators,” he stated.
Ikekhua stated that the enormous rise in the motor insurance portfolio and the industry’s overall performance in 2023 were largely attributed to the Nigerian Insurers Association’s (NIA) knowledge of the new rate and the regulator’s stance on complete compliance.
The New Recovery Regime for Industry
He claimed that in 2023, the National Insurance Commission (NAICOM) will focus its efforts on Risk Based Supervision (RBS) instead of speaking out about the industry’s new recapitalization system.
“The supervision option according to the National Insurance Commission (NAICOM) is geared to reduce the risk associated with the industry and ensure that all the control functions are effective.”
“Other regulatory actions planned for 2023 include the implementation of regulatory sandbox operational standards, new market conduct guidelines for Takaful Insurance operators, and an Enterprise Risk Management Framework for Takaful operators in Nigeria,” he said.
