Shareholders of NEM Insurance Plc are in for good times, as its directors reported a 155% growth in net profit, despite a slight drop in gross premiums written and gross premium earned, investment income and other expenses.
Gross premiums written stood at N10.757bn, down from N10.895bn in 2015; while gross premiums earned dropped from N10.718bn to N10.628bn. Reinsurance expense was also flat at N2.115bn, compared to the previous N2.161bn.
Investment income however rose by 105% to N1.134bn from N554.192m, resulting in total revenue of N10.126bn from N9.857bn.
The company paid a total of N2.669bn in claims, 33% less than the N3.959bn paid in 2015; underwriting expense was up 8% to N2.95bn from N2.733bn; just as management expenses was down 1% to N2.359bn from N2.381bn. Other expenses was down 99% to N1.334m from N183.854m; bringing total claims and other expenses to N7.98bn, down N1.277bn or 14% from N9.258bn in 2015.
Profit before tax however stood at N2.145bn, 258% better than previous year’s N598.838m; while despite the significant increase in income tax expense from N114.864m to N327.974m; leaving profit for the year at N1.51bn, N878.22m better than the N632.425m reported in prior year; resulting in earnings per share of 34 kobo from 14 kobo, the board is however silent about dividend payment.