Underwriting firm, NEM Insurance Plc has rewarded its shareholders with 22- kobo dividend for the financial year ended 31 December 2021despite the challenging business environment, and a year not very predictable because of Covid-19 pandemic.

The Group during the year under review recorded a Gross Premium of N27.8billion as against N22billion generated in the preceding year of 2020, an increase of 26 percent.

Chairman of the Board, Fidelis Ayebae, made the disclosure during its 52nd Annual General Meeting held in Lagos

Ayebae said the group’s Profit After Tax (PAT) in the year under review was N4.448 billion compared to N5.084 billion in the previous year representing a decline of 12.5 percent, and this was majorly due to sharp decrease in fair value gain.

Though the interest rate in commercial paper was low in 2020 management was proactive enough to take the advantage of other investment opportunities to generate, income on investment of N1.134 billion as against the previous income on investment in 2020 which was N1.004 billion, an increase of about 13 percent, Ayebae stated.

NEM however committed to meeting its obligations during the period under review incurred gross claims of N11.6 billion as against N8.4billion in 2020, an increase of 26 percent.

Tope Smart, group-managing director/CEO, NEM Insurance commenting on the performance of the Company said despite this difficult terrain, the company showed resilience and we were able to post impressive results.

With regard to the issue of recapitalization, he said NEM met the first phase by capitalizing its share premium and part of her retained earnings to bring its paid-up capital to N5, 016,477,000.

“This was achieved through the issuance of bonus shares to all existing shareholders as at middle of December. Suffice to say that the recapitalization exercise has now been suspended as a result of court injunction.”