The approval was given at the company’s 54th Annual General Meeting (AGM) in Lagos on Tuesday.
In his address, Mr Tope Smart, Chairman of the insurance company, stated that the Board recommended a dividend of 60k per one Naira ordinary share, amounting to N3.01 billion for the year under review.
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This dividend is payable to shareholders, subject to the deduction of withholding tax at the appropriate rate.
Smart said that the Group’s Profit Before Tax (PBT) for the 2023 financial year stood at N18.9 billion, indicating an increase of 244 per cent compared to N5.5 billion recorded in 2022.
The parent company’s PBT also rose by 239 per cent to N19.2 billion, compared to N5.5 billion recorded in 2022.
“The position of the group’s financial assets between 2022 and 2023 increased by 160 per cent, while its total assets and total equity improved by 68 and 43 per cent, respectively.
“The group’s Earnings Per Share( EPS) for the year under review was 260k, compared to 108k in the previous year, while the Parent Company’s EPS for the year 2023 was 264k, against 108k posted in the preceding year,” Smart said.
The chairman highlighted that the company paid claims of N15.7 billion in the year under review, up from N12.3 billion in the preceding year, reflecting a 28 per cent increase.
However, the claims ratio, which stood at 30 per cent in 2023, decreased by 25 per cent from 40 per cent recorded in 2022.
He noted that the underwriter’s insurance revenue grew from N31.4 billion in 2022 to N52.1 billion in 2023, showing an increase of 66 per cent.
The firm’s total investment income also rose by 106 per cent in 2023 to N3.3 billion, from N1.6 billion in 2022.
Smart disclosed that the insurer’s management expenses increased from N3.7 billion in 2022 to N5.3 billion in 2023, reflecting a 43 per cent increase, due to the impact of inflation and business growth during the year under review.
As part of its expansion strategy, Smart hinted that the company’s plan to set up a viable life assurance company is in progress.
He appreciated the management and staff of the firm for their continued dedication and hard work in achieving set goals.
He also lauded the commitment and cooperation of the Board and commended the shareholders, brokers, agents, and other clients of the company for consistently adding value to its growth.
In his remarks, Mr Andrew Ikekhua, the Managing Director of NEM Insurance, said that 2023 remained a historical milestone for the insurance company.
Ikekhua stated that NEM not only met its target for the year but also rose to the number one position in the general business insurance market in Nigeria.
He noted that going forward, the underwriter would continue to press home its strategic objectives while leveraging its strengths built on reputation, branch acceptability, and strong financial capacity.
Despite ending the year under review with strong economic headwinds and a persistent increase in inflation, Ikekhua noted that the gross domestic product growth of 3.46 per cent in the fourth quarter of 2023 and the World Bank’s growth rate projection of 3.3 per cent for 2024 indicated a sign of relief for the country.
“We shall exploit to our advantage all opportunities with a positive outlook in the economy and recent regulatory guidelines,” he added.
About NEM Insurance
NEM INSURANCE PLC started insurance business in Nigeria in 1948 through the agency of Edward Turner & Co.
It became a Nigerian branch of NEM General Insurance Association Limited of London in 1965 and incorporated in 1970 as a Nigerian company in compliance with the Companies Decree of 1968.
The company became quoted on the Nigerian Stock Exchange in 1989 following the privatisation by the Federal Government of Nigeria.
The company, which has contributed immensely towards the growth of Insurance Industry in Nigeria, was into Life and Non- Life business but following the recapitalization exercise in 2007, the company merged with Vigilant Insurance Company Ltd to transact all classes of General Insurance.
The company has expanded its operations into the West African Sub region, with the successful registration and commencement of business of its subsidiary, NEM Asset Management was added to the Brand in March, 2016.
REGENCYNEM INSURANCE (GHANA) LIMITED, an associate company was also added in September, 2016.
