The Nigerian insurance trade is increasing and expects to exceed its projections as shopper confidence grows and operators undertake extra expertise. Previously, the trade’s progress prospects have been hampered by low penetration ranges due to an absence of precedence and belief in insurance merchandise, significantly life insurance, and a scarcity of adequately expert insurance underwriters.
However, some insurance firms, reminiscent of NEM insurance, seem to be forward of the sport, with a 23% enhance in internet premium in 2021 and a market valuation of 31%.
One of the macro-environmental elements that will have benefitted the corporate is the federal government’s implementation of a framework comprising six obligatory insurance insurance policies in addition to funding life and non-life insurance firms created to increase the insurance trade and to enhance the enforcement of the adoption of insurance.
Competition
The trade contains of roughly 58 insurance firms (14 life and 43 non-life and a couple of reinsurance firms) with brokers (particular person and company our bodies), brokers, surveyors, and third-party directors. However, based mostly on the market share and measurement, the businesses straight competing with NEM insurance in Nigeria are Leadway, AIICO, Coronation Insurance, and AXA Mansard.
About NEM Insurance Plc
NEM Insurance Plc started operations in 1948 as an company of Edward Turner & Co. In 1965, the corporate turned a Nigerian department of the London-based NEM General Insurance Association Limited and have become integrated in 1970 earlier than being listed on the Nigerian Stock Exchange in 1989.
The firm began by providing life and non-life insurance. After its recapitalization in 2007, it merged with Vigilant Insurance Company Ltd to transact all varieties of General Insurance.
With the profitable registration and launch of its former subsidiary, NEM Insurance (Ghana) Limited, in May 2009, the corporate expanded its operations into the West African Sub-region.
Due to a recapitalization requirement, the subsidiary merged with Regency Alliance to kind Regency NEM Insurance Ghana Ltd in September 2016. NEM Asset Management Limited, a brand new member, was additionally added to the model in March of 2016.
Products
- Motor Insurance (Corporate)
- Marine Insurance
- Aviation Insurance
- Oil And Gas
- Engineering Insurance
- Computer And Electronics Policy
- Fidelity Guarantee
- Group Personal Accident
Personal merchandise embody Goods in Transit, Fire and Special Perils Insurance, Travel Insurance, Motor Insurance, Home Protection, Professional Indemnity, Enhanced Motor Third Party
SME merchandise embody Burglary Insurance, Product Liability, Fidelity Guarantee, Motor Insurance, Cash in Transit, Group Personal Accident, Agricultural Insurance
Board of Directors
Dr. Fidelis Ayebae– Chairman
Fidelis A. Ayebae is the Chairman of NEM Insurance Plc. Additionally, he serves on the board of the Manufacturers Association’s Pharmaceutical Manufacturers Group. He is a member of the Nigerian Institute of Management, the Institute of Directors, and the Associate of the Chartered Institute of Administration. He has a background in banking and engineering and is a seasoned industrialist and funding specialist.
Mr. Tope Smart– Group Managing Director/CEO
Mr. Smart is an Associate Member of the Chartered Insurance Institute of London and the Chartered Insurance Institute of Nigeria. He can be a Chartered Insurance Practitioner and an honors graduate of the University of Lagos. He additionally holds an MBA from the University of Nigeria. He serves on the boards of the West African Insurance Companies Association (Ghana), the Nigeria-Britain Association, and the Chartered Insurance Institute of Nigeria.
Other Members of the Board are:
- Andrew Ikekhua
- Sunday Joshua Adebayo
- Momoh Odamah
- Olayinka Aletor
- Ahmed Yakasai
- Chief Ede Dafinone
- Joy Teluwo
- Papa Ndiaye
- Kelechi Okoro
Achievements
- NEM Insurance Plc’s monetary power was upgraded to AA-(NG) in August 2021, based mostly on sustained earnings power and a secure outlook.
- In August 2022, its shares rose by greater than 31%, closing at N5, up from N3.82.
- One of the corporate’s strengths that will have contributed to its success is the technical competence led by chief govt officer Mr. Tope Smart, whose competence is considered the gold customary for measuring moral conduct within the insurance business in Nigeria.
Regulators
The National Insurance Commission (NAICOM) is Nigeria’s main insurance regulatory physique, overseeing roughly 58 insurance firms (14 life and 43 non-life, and a couple of reinsurance firms).
The Nigerian Council of Registered Insurance Brokers Act (NCRIBA) and the National Insurance Commission Act (NAICOMA) are additionally regulators.
Agents (particular person and company our bodies), brokers, surveyors, and third-party directors are additionally a part of the trade. However, based mostly on the variety of rivals and market measurement, the businesses straight competing with NEM insurance in Nigeria are Leadway, AIICO, Coronation Insurance, and AXA Mansard.
Performance
The share worth of N.E.M. Insurance Company (NEM) as of Thursday, September 29, is NGN 4.91. NEM has traded a complete quantity of 78.9 million shares—in 1,176 offers—valued at NGN 361 million over the interval, with an common of 1.25 million traded shares per session.
The firm’s 2021 annual reported Gross premium revenue is 26,545,254 and a revenue earlier than tax of 4,528,198.
Due to enormous unpaid claims, the fame of some insurance corporations is due to this fact threatened with liquidation. This is an alternative that will go away NEM and different main gamers within the trade to compete with fewer insurance corporations.
With quite a lot of regulatory adjustments that can additional alter how the insurance trade conducts business and interacts with its purchasers, the trade’s future seems brilliant.
