Nem Insurance Plc recorded a profit after tax of N23.3bn, reflecting a 76 per cent increase compared to the N13.3bn achieved in 2023.
In the company’s financial statement for the fourth quarter of 2024 filed on the Nigeria Exchange Limited on Tuesday, its revenue for the year soared by 87 per cent, reaching N97.1bn in 2024, compared to N52bn in the previous year. The rise was primarily driven by improved premium collections and underwriting practices.
In addition, the firm posted an increase in investment income, particularly from its financial investments. The company’s financial investment portfolio expanded by N37.2bn, with the value of investments at fair value through profit or loss growing from N10.5bn in 2023 to N11.4bn in 2024. Investments held at amortised cost also saw substantial growth, rising to N61.8bn, up from N36.4bn the previous year.
As of December 31, 2024, Nem Insurance’s total assets stood at N110.2bn, a 48 per cent increase from N74.3bn in 2023. Investments in subsidiaries, statutory deposits, and intangible assets also added value to the overall asset base, indicating a well-diversified portfolio.
Notably, the company’s property, plant, and equipment grew by N703.6m, rising from N4.06bn in 2023 to N4.76bn in 2024. This increase can be attributed to continued investments in infrastructure and technology, which are key to driving operational efficiencies.
Nem Insurance’s profitability remained strong, with profit before tax reaching N27bn in 2024, up 41 per cent from N19.2bn in the prior year. The increase in profitability was largely driven by the company’s higher insurance revenue and a marked improvement in its investment results.
The company recorded a net insurance and investment result of N34.9bn for the year, an increase from N24.2bn in 2023. This was the result of a combination of higher net foreign exchange gains and solid investment returns.
Additionally, Nem Insurance generated a net foreign exchange gain of N7.7bn, consistent with the previous year’s performance of N11.4bn. This highlights the company’s expertise in navigating the challenges of foreign currency volatility.
Operating expenses also saw a sharp increase, with management expenses rising to N7.9bn, compared to N4.9bn in the previous year.
However, despite this increase, it was able to effectively control its overall cost base. The company managed to reduce its finance cost by 60 per cent, from N348.8m in 2023 to N137.8m in 2024, reflecting the firm’s ongoing efforts to optimise its capital structure and manage its debt levels more efficiently.
Other operating income for the year stood at N181.7m, slightly up from N180.1m in the prior year, contributing to the overall increase in profitability.
On the taxation front, Nem Insurance recorded an income tax expense of N3.7bn in 2024, a reduction compared to N5.9bn in 2023. This lower tax liability reflects the company’s improved financial performance and its effective tax management strategies.
After tax, it posted a final profit of N23.3bn, marking an impressive 76 per cent increase compared to N13.3bn in 2023. The company’s ability to generate significant profit growth amidst a challenging economic environment speaks volumes about its resilience and strategic foresight.
Its balance sheet showed growth, with total equity increasing by 54 per cent to N59.7bn, up from N38.7bn in 2023.
The statutory contingency reserve saw a rise of 47 per cent, growing to N14.5bn, reflecting the company’s focus on maintaining strong capital buffers to support future growth and meet regulatory requirements.
Contract liabilities also increased by N12bn, growing from N25.1bn in 2023 to N37.1bn in 2024.
The PUNCH reported that Nem Insurance has reported a 249 per cent increase in its profit before tax in 2023, soaring from N5.5bn in 2022 to N19.2bn.
