NEM Insurance Plc has projected a rise in its Profit After Tax (PAT) to N1.71 billion for the first quarter of 2021 (Q1, 2021), indicating a 482% increase from the figure recorded in Q3 2020.
This is according to the latest earnings forecast of the firm, sent to the Nigerian Stock Exchange market today.
Key highlights of the earnings forecast for Q1 2021 are:
- Pre-tax profit is expected to rise to N2 billion, +479.8% Q-o-Q
- Gross written premium is expected to rise to N10.71 billion, +85.2% Q-o-Q
- Reinsurance expenses are expected to rise to N2.77 billion, +107.1% Q-o-Q.
- Net premium income is expected to rise to N6.84 billion, +122.1% Q-o-Q.
- Fees and commission received is expected to rise to N629.95 million, +132.9% Q-o-Q.
- Claims expenses are expected to rise to N2.58 billion, +15.4% Q-o-Q.
- Net underwriting income is expected to rise to N7.47 billion, +123% Q-o-Q.
- Investment income is expected to rise to N353.44 million, +42.5% Q-o-Q.
- Income taxes is projected at N301.07 million,
- Total assets is projected at N33.46 billion
- Earning Per share is projected at N17.1.
A cursory look at the earnings forecast revealed growing optimism in the five major business categories of the firm – Motor, Marine, Fire, General Accident, and Oil and Gas.
The Motor segment lead in most income and expenses forecast, as it is expected to contribute the largest share in terms of projected net income and gross premium, generating the highest claims expenses.