By Adedapo Adesanya
Top insurance company, NEM Insurance Plc, recorded 18 percent increase in profit after tax (PAT) to N2.4 billion from N2.04 billion achieved in the preceding year. The higher net profit in the period under review was boosted by the tax refund of N475.6 million.
Before taxes, NEM Insurance recorded a lower profit in 2019 when compared with 2018. In the results released by the insurer, the profit before tax went down by 29 percent to N1.9 billion from N2.7 billion.
Analysing the topline of the results, there was an increase in the Gross Premium Written of the company during the year. This grew by 31 percent to N19.8 billion from N15.0 billion in 2018.
In addition, gross premium income quoted by NEM Insurance was N19.3 billion, 34 percent or N4.9 billion higher than N14.3 billion of the previous year.
The results further showed that company’s reinsurance expenses increased by 82 percent from N2.99 billion in 2018 to N6.6 billion, while the net underwriting income increased by 21 percent to N13.8 billion from N11.4 billion made in 2018.
Furthermore, claims expenses rose to N3.9 billion from N2.6 billion, while the and underwriting expense jumped to N5.5 billion from N4.3 billion.
This amounted to a lesser underwriting profit of N4.3 billion in the FY 2019 compared with N4.6 billion achieved in the comparative year.
Fees and commission income skyroctted to N1.2 billion from N743.6 million, while the investment income decreased to N878.2 million from N952.8 million.
On the balance sheet, NEM Insurance recorded a 15 percent rise in total assets, which stood at N25.7 billion in 2019 compared with N22.4 billion published in 2018.
On the total liabilities side, there was 16 percent rise, closing the year under review at N11.6 billion as against N10 billion in 2018.
During the financial year, shareholders funds also rose by 13 percent to N14.1 billion from N12.4 billion quoted in the previous year, while the retained earnings increased to N5.8 billion from N4.7 billion.
