NEM Insurance Plc, a leading non-life insurance provider in Nigeria, has achieved a historic milestone, surpassing N100 billion in gross premium income for the fiscal year 2024. This accomplishment marks NEM as the first non-life insurer in the country to reach this significant financial benchmark. The announcement was made during the company’s 55th Annual General Meeting, where the Group Chairman, Tope Smart, proudly shared the news with shareholders, emphasizing the achievement as a landmark in NEM’s history. This remarkable growth showcases the company’s strong market position and strategic initiatives, solidifying its leadership in the Nigerian insurance sector.
NEM’s financial results for the year ended December 31, 2024, paint a picture of robust growth and profitability. The company reported a total insurance revenue of N97.9 billion, an impressive 88% increase compared to N52.1 billion in 2023. This substantial rise in revenue reflects the company’s successful efforts in expanding its market reach, attracting new customers, and strengthening its existing portfolio. Profit before tax soared to N33.7 billion, exhibiting a 78% growth from N18.9 billion in the preceding year. Similarly, the parent company’s profit before tax also experienced significant growth, increasing by 74% to N33.5 billion from N19.2 billion in 2023. These figures underscore NEM’s effective cost management strategies and strong operational performance.
Furthermore, NEM’s investment income witnessed a remarkable surge, rising by 130% year-on-year to N7.6 billion in 2024, compared to N3.3 billion the previous year. This significant increase demonstrates the success of the company’s investment portfolio and its ability to generate returns from its invested assets. Claims expenses also increased, reaching N24.9 billion, up 59.6% from N15.6 billion in 2023. Despite the rise in claims expenses, NEM’s claims ratio improved, declining to 25.5% in 2024 from 30% in 2023, indicating enhanced efficiency in claims processing and management.
The company’s overall financial strength is further evidenced by the growth in its assets and equity. NEM’s total assets increased by 67% while total equity grew by 70%, reflecting the company’s sound financial standing and prudent management. Management expenses rose to N8.5 billion from N5.2 billion, primarily driven by inflation and business expansion. This strategic expansion suggests NEM’s commitment to growth and its proactive approach to market opportunities. The company’s financial assets also registered substantial growth, increasing by 70.7%, further cementing its financial stability and resilience.
In recognition of the strong performance, the board of directors recommended a dividend of 100 kobo per N1 ordinary share, totaling N5.02 billion, subject to shareholder approval and withholding tax deductions. This proposed dividend signifies the company’s commitment to rewarding its shareholders and sharing its financial success. Earnings per share (EPS) for the group rose considerably, reaching 582 kobo in 2024 from 260 kobo in the previous year, while the parent company achieved an EPS of 580 kobo compared to 264 kobo in 2023. These figures reflect the company’s enhanced profitability and its ability to generate value for its investors.
NEM’s subsidiaries, NEM Asset Management Limited and NEM Health Limited, also contributed significantly to the group’s overall success, exceeding expectations during the financial year. This positive performance underscores the strength and diversification of NEM’s business portfolio. Looking ahead, the company plans to launch a life assurance subsidiary, further expanding its service offerings and diversifying its revenue streams. This strategic move aligns with NEM’s growth strategy and its ambition to become a leading comprehensive insurance provider in Nigeria. The planned expansion into life assurance will allow NEM to cater to a wider range of customer needs and capture a larger share of the insurance market. This solidifies NEM’s position as a dynamic and forward-thinking organization poised for continued success.
