insurance industry by becoming the first non-life insurance company to cross the N100 billion mark in gross premium income. The achievement was revealed during the company’s 55th Annual General Meeting (AGM), which held recently in Lagos.
The Group Chairman of NEM Insurance, Mr. Tope Smart, shared the news with shareholders at the meeting, saying the company had reached a new level in its journey. “Our company recorded over a hundred billion gross premium income during the year under review, thereby making history as the first non-life insurance company in our country to attain this spectacular milestone,” he stated.
According to the financial results released by the company, NEM Insurance recorded an insurance revenue of N97.9 billion for the year ended December 31, 2024. This figure represents an 88 percent growth compared to the N52.1 billion revenue it posted in 2023. The gross premium income, however, stood at N108 billion for the full year, making it the highest ever recorded by any non-life insurer in Nigeria.
The company also reported impressive profit before tax figures. Group profit before tax for the year was N33.7 billion, representing a 78 percent increase from the N18.9 billion recorded in 2023. The parent company’s profit before tax stood at N33.5 billion, up from N19.2 billion in the previous year, indicating a 74 percent growth.
In terms of investment income, NEM Insurance posted N7.6 billion, which is a 130 percent increase from the N3.3 billion it earned in 2023. The rise in investment returns shows the company’s successful asset management strategy. At the same time, claims expenses grew by 59.6 percent, from N15.6 billion in 2023 to N24.9 billion in 2024. Despite this increase, the claims ratio dropped from 30 percent to 25.5 percent, showing improved claims management.
Operating expenses also increased due to rising inflation and expansion of operations. Management expenses rose to N8.5 billion, compared to N5.2 billion in the previous year. The company’s total assets also grew significantly by 67 percent, while total equity increased by 70 percent, reflecting the overall strength of the group’s financial position.
Given the strong financial performance, the board of directors recommended a dividend payout of 100 kobo per N1 ordinary share. This will amount to N5.02 billion in total dividend, subject to shareholders’ approval and the usual deductions for withholding tax.
The company also recorded growth in earnings per share (EPS). Group EPS increased to 582 kobo in 2024 from 260 kobo in 2023. The parent company recorded an EPS of 580 kobo, up from 264 kobo the previous year.
Mr. Smart also shared positive updates on the company’s subsidiaries. He said NEM Asset Management Limited and NEM Health Limited performed beyond expectations during the year. He also revealed that the company plans to enter the life assurance segment soon by launching a life assurance subsidiary, as part of its broader expansion strategy.
NEM Insurance Plc, a major provider of general insurance services in Nigeria, has now firmly established itself as a leader in the non-life insurance space. The company’s N108 billion turnover for 2024 is being seen as a game-changer in the Nigerian insurance sector, especially at a time when many insurers are striving to improve their premium base and customer service.
This achievement marks a significant milestone not only for NEM Insurance but for the entire Nigerian insurance industry. It shows the growing capacity of local insurance firms and sets a new benchmark for others to aim for.
