NEM Insurance settles N2.6 bn claims in 2016
2016By Previous Chimezie
NEM Insurance Plc, has settled claims worth N2.67 billion during the financial year 2016.
This was disclosed by the Chairman of the company, Dr. Fidelis Ayebae during firms 47th Annual General Meeting held in Ibadan, Oyo State.
According to him, there was a notable improvement in the company’s claim experience during the period under review.
He said “in the previous year the absolute figures were N3.96 billion and N3.8 billion respectively. Gross Claims ratio was 37.7percent for the Group and Parent Company, while that of the preceding year was 43.9percent and 43.3percent respectively. The Net Claims ratio was 31.4percent for the Group and Parent Company,while that of the previous year was 46.3percent and 46.6percent respectively.
He noted that its Profit before Tax (PBT) went up by 258.3 percent and 290.8 percent for the Group and Parent Company respectively.
It added that the group PBT rose massively from N598.8 million in the previous year of 2015 to N2.14 billion at the end of 2016 while the Parent Company BPT rose from N559.4 million In 2015 to N2.19 billion in the period under review.
He added that “the Financial Assets for the Group and Parent Company for the year under review improved by 8.5 percent and 17.9percent respectively over that of the preceding year. While the Total Assets and Total Equity of the Group improved by 16.1% and 19.4% respectively, those of the Parent Company improved by 20.2petcent and 19.7percent respectively.”
He explained further that “following the directive of the National Insurance Commission Ghana to increase the share base of Insurance Companies from $1 million to $5 million, we decided to merge our operations with Regency Alliance Ghana Ltd. Shareholders at the meeting approved N0.08kobo dividend to be its investors whose names appeared in the company register.
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