The Chairman, NEM Insurance Plc, Dr Fidelis Ayebae, has revealed plans of the company to increase its issued share capital.
Ayebae, while speaking at the company’s Annual General Meeting in Lagos on Wednesday, said the company would proactively begin to prepare to raise fund for the share capital increase, in addition to its plan for the acquisition of a life company.
He noted that during the year, the National Insurance Commission introduced the tier-based minimum solvency capital, which was later cancelled when it was challenged in court.
He added that a further upward review of capital should not be ruled out.
Ayebae stated that the company recorded a gross premium income of N15bn in 2018, an increase of 12.2 per cent over the previous year’s turnover of N13.4bn.
According to him, an increase of 34.2 per cent was achieved in investment income, while the income for 2018 was N952.8m and that of 2017 was N709.9m.
He said the gross claims incurred during the year amounted to N6.01bn, an increase of 20 per cent over the N5.01bn recorded in 2017.
The gross claims ratio for 2018 stood at 40 per cent whereas that of 2017 was 37.4 per cent.
A further analysis of the financial statement showed that net claims paid for during the year was N2.6bn, compared to the N1.8bn paid in 2017.
Ayebae stated that the board, during the year under review, supervised the management’s efficiency that brought about a reduction in the management expenses from N2.9bn in 2017 to N2.8bn in 2018
The group’s profit before tax for the year under review was N2.69bn and N3.09bn in 2017, representing a decrease of 13.2 per cent.
The parent company’s PBT was N2.67bn in 2018, a decrease of 13.4 per cent from the N3.08bn recorded in 2017.
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.
Ayebae said the board recommended a dividend of 13 kobo per 50 kobo ordinary shares, which amounted to N686.4m payable to shareholders, subject to deduction of withholding tax at the appropriate rate.
