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Friday, March 29, 2024

NEM Insurance Reports Highest Q1 Gross Premiums Written

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Nem Insurance Plc has announced a 56.77 percent rise in gross premiums written (GPW) for the first quarter of 2023 to N19.91 billion from N12.70 billion, the highest the group has delivered in a first quarter.

A breakdown of total revenue shows GPW from Motor segment grew 72.26 percent to N7.08 billion in Q1, driven by growth and a hike in third party insurance by the regulator. While, the GPW in the Fire Business rose by 52.88 percent to N5.03 billion.

The insurer made N1.32 billion as at March 2023, but the segment did not generate any income last year and no reasons were given for this.

Of course, NEM Insurance has a combined ratio of 76 percent-which is an improvement from 88 percent the previous year- is the lowest in the industry, and makes it the most efficient and profitable insurer in Nigeria.

Additionally, the firm has maintained a combined ratio below the 100 percent threshold for close to a decade, which validates an appropriate mx of claims and premium that ensures it posts consistent underwriting profit and deliver higher returns to shareholders even amid rising inflation, climate change, Russia /Ukraine war, hike in fuel pump price, and unstable labour market.

It posted real underwriting results of N2.80 billion as at March, which is N1.10 billion, according to MoneyCentral calculations.

The results underwriting results are better than underwriting income because it includes management expenses in its calculations.

NEM is meeting obligations to policyholders, which is why customers have confidence in the firm. It paid N2.91 billion in claims, which is 13.39 percent lower than 2022’s N3.36 billion.

Claims ratio reduced to 24.48 percent in March 2023 from 36.65 percent the previous year.

The board and management of the company said it will continue to leverage its robust technology infrastructure and maintain a healthy result and asset base.

Profit after tax (PAT) increased by N2.85 billion in March 2023 from N1.54 billion as at March 2022.

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