By Joy Baba-Yesufu
NEM Insurance Plc is set to expand its footprint in Nigeria’s financial services sector with the planned launch of a life assurance subsidiary, marking a major milestone in its strategic growth agenda.
Speaking at the company’s 55th Annual General Meeting held in Lagos, Tope Smart, Chairman of the Board, disclosed that preparations to secure a life assurance license are already in progress. As part of our expansion strategy, our plan to set up a viable life assurance company is well underway and will be unveiled soon,” he said.
The announcement comes on the back of a strong financial performance for the 2024 financial year. NEM Insurance recorded an 88% increase in insurance revenue, rising from ₦52.1 billion in 2023 to ₦97.9 billion in 2024. The Group also posted a Profit Before Tax (PBT) of ₦33.7 billion, up 78% from ₦18.9 billion the previous year. The parent company alone reported a PBT of ₦33.5 billion, representing a 74% increase year-on-year.
To reward shareholders, the board approved a dividend payout of 100 kobo per share, totaling ₦5.02 billion.
Smart noted that despite macroeconomic challenges including insecurity, exchange rate volatility, and high inflation NEM has continued to maintain a leadership position in the insurance sector. He called on all stakeholders, including government, to create enabling conditions by improving security, addressing unemployment, boosting climate resilience, and enhancing the general standard of living.
Other highlights from the 2024 results include a 70.7% rise in group assets, with Total Assets and Total Equity growing by 67% and 70%, respectively. The Group’s Earnings Per Share (EPS) climbed to 582 kobo, compared to 260 kobo in 2023, while the parent company posted an EPS of 580 kobo, up from 264 kobo.
NEM Insurance also reinforced its commitment to claims settlement, paying out ₦24.9 billion in claims in 2024, up 59.6% from ₦15.6 billion the previous year.
