Prime Business AfricaNEM Insurance had an impressive financial year in 2024, with revenue rising by 88 percent after generating N97.96 billion, up from N52.11 billion recorded in 2023.
However, incurred claims and claims handling expenses ate into the company’s turnover as insurance service expenses rose 78 percent to N61 billion last year, compared to N34.21 billion registered the year before.
Join our WhatsApp ChannelAlso, NEM Insurance parted with N18.13 billion to net expenses on reinsurance contracts, which gulped 42 percent more than the N12.79 billion paid for claims to reinsurance companies in 2023.
Thus, the insurer was left with N18.81 billion in insurance service result or turnover after expenses, a 269 percent increase compared to the N5.09 billion earned from providing insurance coverage the previous year.
Aside from the revenue from core business, NEM Insurance reported a net foreign exchange (FX) gain of N14.80 billion, which is 30 percent higher than the N11.38 billion reported in 2023.
With an impressive topline at the end of the reviewed period, NEM Insurance closed 2024 with a robust bottom line after a 25 percent decrease in income taxes.
NEM Insurance reported a profit before tax (PBT) of N33.69 billion, up by 79 percent from N18.87 billion, but the earnings reduced further after the insurer paid N4.45 billion in taxes, which is lower than the N5.92 billion paid in 2023.
Consequently, NEM Insurance saw a 126 percent increase in profit after tax in 2024, as the company recorded N29.24 billion net income, compared to the N12.94 billion PAT reported the previous year.
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