NEM Insurance Profit Surges 204.29% Validating Financial Strength

Despite a turbulent macroeconomic environment, NEM Insurance Plc recorded earnings growth while there was an improvement in total equity, which validates the insurer’s financial strength and capability to meet its obligations.

The insurer is the only one among its peer rivals who has been able to record profit and margin growth in the last six years.

For the first six months through June 2024, NEM Insurance’s profit surged by 204.29 percent to N10.63 billion from N3.49 billion as at June 2023.

Since there was an uptick in all business segments , Insurance revenue spiked by 71.24 percent to N45.46 billion as at June 2024 from N26.55 billion the previous year.

A breakdown of insurance revenue shows sales from Fire business was up 85.64 percent to N11.19 billion as at June 2024; revenue from Oil and Gas rose by 154.02 percent to N13.60 billion in the period under review; sales from Motor segment increased by 52.52 percent to N12.37 billion.

The company paid N9.10 billion to policyholders, which is 15.92 percent to N7.85 billion the previous year as it continues to honor its obligations even amid rising inflations.

In recognition of its stellar performance or improved financial metrics in key areas, Global Credit Rating Agency of South Africa, upgraded NEM Insurance’s financial strength rating from AA minus to AA with a stable outlook.

“During the year, the Global Credit Rating Agency of South Africa upgraded our financial strength from AA minus to AA with a stable outlook. This new rating indicates our strong financial capacity to meet our obligations and plan big in the market. It also improves our brand acceptability with better chances of winning more corporate businesses. As part of our corporate strategy, five new retail products were developed and deployed into the market after NAICOM approval,” said Andrew Ikekhua, managing director and CEO of the company.