Nem Annual Report Revised Final

VALUE
CREATION
A Promise Kept
NEM Insurance Plc

Annual Report & Accounts 2023
It is our values
that ground us to
WHO WE ARE
AND WHO WE
ASPIRE TO BE
- Tara Loyd
NEM Insurance Plc
Annual Report & Accounts, 31 December, 2023
w w w. n e m - i n s u r a n c e . c o m 3
NEM Insurance Plc
We are proud to
report improved
customer
satisfaction,
increased
shareholder value,
expanded product
offerings and higher
premiums.
This year’s theme, “Value Creation: A to the dedication of our team and the
Promise Kept,” reflects NEM Insurance’s trust placed in us by our customers, part-
uncompromising obligation to our stake- ners, and investors.
holders. Despite the tough business
environment in Nigeria, it has been a year Looking ahead, we remain committed
of positive achievements related to value to building on this foundation. We will
creation, involving strategic expansion, continue to drive innovation, expand our
diversification, innovation, financial per- reach, and enhance customer experience.
formance and more, demonstrating that
we deliver on our promises. On behalf of the Board of Directors, I
thank everyone for their continued sup-
We are proud to report improved cus- port. We are confident that NEM Insur-
tomer satisfaction, increased shareholder ance is well-poised to deliver even greater
value, expanded product offerings and value in the years to come.
higher premiums. This success is a tribute
4 w w w. n e m - i n s u r a n c e . c o m
NEM Insurance Plc
Value
Creation,
a Commitment Delivered
Mr. Tope Smart

Group Chairman
NEM Insurance Plc
Our Vision
To be the preferred choice
of the insuring public
Our Mission
To build a customer-satisfying Insurance
Institution that is passionate about adding
value to the interests of all stakeholders.
Core Values
• Discipline
• Integrity
• Humility
• Excellence
• Empathy
• Courage
NEM Insurance Plc
Brief history about

the Company
NEM INSURANCE PLC started insurance business in
Nigeria in 1948 through the agency of Edward Turner & Co.
It became a Nigerian branch in Nigeria, was into Life and

of NEM General Insurance Non-Life business. Following
Association Limited of London in the recapitalization exercise, the
1965. company merged with Vigilant
Insurance Company Limited in
NEM Insurance Plc was 2007 to transact all classes of
Incorporated in 1970 as a General Insurance.
Nigerian company in compliance
with the Companies Decree of NEM Insurance Plc has received
1968 and became quoted on a myriad of awards over the
the Nigeria Exchange in 1989 years and has been recognized
following privatization by the as the Most Profitable Insurance
Federal Government of Nigeria. Company in Nigeria, Most
Valuable Insurance Company
The company, which has in West Africa and the Best
contributed immensely towards Customer Care Award amongst
the growth of Insurance Industry others.
BOUNTIFUL
HARVEST AHEAD!
BeNemSure Today
Multi Perils Crop Policy

Farm/Area Yield
Index Crop Policy
Head Office:
NEM House,199, Ikorodu Road,
P. O. Box 654 Marina,
Tel: 01-4489560-9; 01-4489570 NIA
Email: nem@nem-insurance.com
nemsupport@nem-insurance.com A MEMBER OF THE NIGERIAN
INSURERS ASSOCIATION
RC: 6971
www.nem-insurance.com
Authorised and Regulated by National Insurance Commission RIC 028 (G)
NEM Insurance Plc
TABLE OF
CONTENTS
01
GOVERNANCE
Notice of 54th Annual General Meeting 12
Corporate Information 17
Results at a Glance 20
Chairman’s Statement 24
MD/CEO Report 32
Report Of Directors 36
Board Of Directors 50
Board Of Directors’ Profile 54
Management Team Profile 66
02
FINANCIALS
Report Of External Consultants On Board Appraisal 84
Statement of Directors’ Responsibilities 85
Statement of Corporate Responsibility 86
Certification Pursuant 87
Management’s Report On The Effectiveness Of Internal Control Over Financial Reporting 88
Environmental, Social and Governance (ESG) Report 89
Report Of The Audit and Compliance Committee 90
Independent Auditor’s Report 91
Statement Of Material Accounting Policies 97
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 1 January 2022 (Group) 129
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 1 January 2022 (Parent) 130
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 31 December 2022 (Group) 131
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 31 December 2022 (Parent) 132
IFRS 17 Transition Adjustment For Statement Of Profit Or Loss And Other Comprehensive Income (Group) 133
IFRS 17 Transition Adjustment For Statement Of Profit Or Loss And Other Comprehensive Income (Parent) 134
Notes To The Transition Adjustment 135
Consolidated and Separate Statements of Financial Position 144
Consolidated and Separate Statements of Profit Or Loss and Other Comprehensive Income 145
Consolidated Statement of Changes in Equity (Group) 146
Consolidated Statement of Changes in Equity (Parent) 147
Statement Of Cash Flows 148
Notes To The Financial Statements 149
03
OTHER NATIONAL DISCLOSURE
Other National Disclosure 269
Statement Of Value Added - Group 270
Statement Of Value Added - Parent 271
Five Year Financial Summary - Group 272
Five Year Financial Summary - Parent 274
04
SHAREHOLDER’S INFORMATION
Proxy Form 277
Shareholder’s Information Update 279
E- Dividend Mandate Activation Form 281
MOTOR OIL & GAS
BONDS MARINE AGRICULTURE ENGINEERING

NEM Insurance Plc
Governance
Notice of 54th Annual General Meeting 12
Corporate Information 17
Results at a Glance 20
Chairman’s Statement 24
MD/CEO Report 32
Report Of Directors 36
Board Of Directors 50
Management Team Profile 66
NEM Insurance Plc
Notice of 54th Annual

General Meeting
NOTICE IS HEREBY GIVEN that the 54th Annual General Meeting of NEM INSURANCE
PLC (“the Company”) will hold on Tuesday 2nd July 2024 at The Shell Hall, Muson
Centre, 8/9 Marina Onikan Lagos by 9am to transact the following business:
ORDINARY BUSINESS
1. To lay before shareholders the Audited Financial Statement of the Company for the year ended 31st December
2023 and Reports of the Directors, the Auditors Report, and the Audit Committee’s Report thereon.
2. To declare a Dividend.
3. To re-elect the following Non-Executive Directors that are retiring by rotation.

(a) Mr. Papa Ndiaye
(b) Mr. Kelechi Okoro
4. To ratify the appointments of the following Directors:

(a) Mr. Tope Smart as Chairman of the Company.
(b) Mr. Andrew Ikekhua as Managing Director of the Company
(c) Mr Idowu Semowo as Executive Director of the Company
(d) Chief Anthony Aletor - (Non-Executive Director)
(e) Mrs. Abisola Giwa-Osagie - (Non-Executive Director)
(f) Dr Daphne Oterie Dafinone - (Non-Executive Director)
5. To ratify the appointment of the External Auditors and to authorize the Directors to fix the remuneration of the
External Auditors.
6. To elect members of the Audit Committee.
7. To disclose the Remuneration of Managers of the Company.
SPECIAL BUSINESS
8. To approve the remuneration of Non-Executive Directors.
9. To consider and if thought fit, pass the resolution as an ordinary resolution of the Company: “That the general
mandate given to the company to enter into recurrent transactions with related parties for the company’s day-
to-day operations, including amongst others the procurement of goods and services, on normal commercial
terms be and is hereby renewed.
NEM Insurance Plc

General Meeting Cont’d
NOTES:
I. PROXY
a. A member entitled to attend, and vote is entitled to appoint a proxy to attend and vote instead of him/
her. A proxy need not be a member of the Company. A form of proxy is attached to the last page
of this Annual Report and may also be downloaded from the Company’s website at: www.nem-
insurance.com.
b. For the instrument of proxy to be valid for the purposes of this Meeting, it must be completed and duly
stamped by the Commissioner of Stamp Duties and emailed to registrars@apel.com.ng or deposited
at the office of the Registrars, Apel Capital Registrars Limited 8, Alhaji Bashorun Street Off Norman
Williams Crescent South-West Ikoyi Lagos not less than 48 hours before the time of the Meeting.
c. The Company has made arrangements at its cost for the stamping of the duly completed proxy forms
submitted to the Company’s Registrars within the stipulated time.
II. CLOSURE OF THE REGISTER OF MEMBERS

The Register of Members and Transfer Books of the Company will be closed from Friday, 21st June 2024
till Thursday, 27th June 2024 both dates inclusive for the purpose of updating our Register of Members.
Accordingly, dividends will only be paid to Shareholders whose names are on the Register on the Thursday,
20th June 2024. Payment date is Tuesday, 2nd July 2024.
III. UNCLAIMED DIVIDEND

Shareholders are hereby informed that some dividends have remained unclaimed and returned to the
Registrar. The list of such unclaimed dividends is available here: https://sites.google.com/apelasset.com/
dividendsearch/home. The affected shareholders are advised to contact the Registrars, Apel Capital
Registrars Limited 8, Alhaji Bashorun Street off Norman Williams Crescent South-West Ikoyi Lagos to
resolve any issue they may have with claiming their dividends.
IV. DIVIDEND PAYMENT

If the proposed dividend of 60kobo per ordinary share of N1Naira each as recommended by the Directors
is approved by members at the AGM, e-dividends will be paid to shareholders’ accounts in accordance
with the directive of the Securities and Exchange Commission (SEC) on 2nd July 2024 to the shareholders
whose names appear in the Register of Members at the close of business on Thursday, 20th of June
2024.
V. E-DIVIDEND
Notice is hereby given to all shareholders who are yet to mandate their dividends to be credited to their
designated bank accounts to kindly update their records by completing the e-dividend mandate form and
submitting same to the Registrars, as dividend will be credited electronically to shareholders’ designated
bank accounts as directed by the Securities and Exchange Commission (SEC).
NEM Insurance Plc

Detachable application forms for e-dividend mandate, change of address and unclaimed dividends are attached
to the Annual Report for the convenience of all shareholders. The forms can also be downloaded from the
Company’s website at www.nem-insurance.com or from the Registrars’ website at www.apel.com.ng. The
completed forms should be returned to Apel Capital Registrars Limited, 8, Alhaji Bashorun Street off Norman
Williams Crescent South-West Ikoyi Lagos.
VI. STATUTORY AUDIT COMMITTEE

The Statutory Audit Committee consists of three (3) shareholder representatives and Three (3) Directors and in
accordance with Section 404 of the Companies and Allied Matters Act, 2020, (CAMA, 2020) any shareholder
may nominate another shareholder for election as a member of the audit committee by giving notice in writing
of such nomination to the Company Secretary at least 21 days before the Annual General Meeting.
Further, CAMA 2020 provides that all members of the Statutory Audit Committee shall be financially literate and
at least one member shall be a member of a professional accounting body in Nigeria established by an Act of
the National Assembly.
Consequently, we request that nominations to the Statutory Audit Committee should be accompanied by a
detailed copy of the nominees’ Curriculum Vitae and requisite qualifications.
VII. LIVE STREAMING OF THE AGM

The Annual General Meeting will be streamed live via the Company’s website. This will enable shareholders and
other stakeholders who will not be attending the meeting physically to observe the proceedings. Please log on
to www.nem-insurance.com for a link to the live streaming of the Annual General Meeting.
VIII. RE-ELECTION OF DIRECTORS

In accordance with Section 259 of the Companies and Allied Matters Act, 2020, Mr. Papa Ndiaye and Mr.
Kelechi Okoro will retire by rotation and being eligible, have offered themselves for re-election. Their profiles are
contained in the Annual Report and on the Company’s website.
IX GENERAL MANDATE
In line with the Nigerian Exchange Limited (“NGX”) Rules in Transactions with Related Parties, the company is
required to seek a renewal of the general mandate from shareholders as per Item 9 of the agenda above. This
mandate shall commence on the date on which this resolution is passed and shall continue to operate until the
date on which the next Annual General Meeting of the Company is held.
X NO VOTING BY INTERESTED PARTIES

In line with the provisions of Rule 20.8(h) Rules Governing Related Party Transaction of Nigerian Exchange
Limited, interested persons have undertaken to ensure that their proxies, representatives, or associates shall
abstain from voting on Special Business resolution 9 above
NEM Insurance Plc

XI RIGHT OF SHAREHOLDERS TO ASK QUESTIONS
Pursuant to Rule 19.12 (c) of the Nigerian Exchange Limited’s Rulebook
2015, it is the right of every Shareholder to ask questions not only at
the meeting but also in writing prior to and after the meeting. Please
send all questions, comments, or observations by email to nem@
nem-insurance.com not later than 20th June 2024. Questions and
answers will be presented at the Annual General Meeting.
XII E-ANNUAL REPORT

The electronic version of the Annual Report (e-annual report) can
be downloaded from the Company’s website www.nem-insurance.
com. The e-annual report will be emailed to all shareholders who have
provided their email addresses to the Registrars. Shareholders who
wish to receive the e-annual report are kindly requested to send an
email to nem@nem-insurance.com. or registrars@apel.com.ng.
XIII WEBSITE
A copy of this Notice and other information relating to the Meeting can
be found at www.nem-insurance.com.
BY ORDER OF THE BOARD
IFUNANYA IWUAGWU
Company Secretary
FRC/2024/PRO/ICSAN/002/252928
199, Ikorodu Road, Lagos
Dated This 29th Day of May 2024
NEM Insurance Plc
Corporate Information
Directors
Mr. Tope Smart - Group Chairman
Dr. Fidelis Ayebae - Chairman (retired 16th August 2023)
Mr. Andrew Ikekhua - Managing Director/CEO
Mr. Idowu Semowo - Executive Director
Mr. Papa Ndiaye - Director
Mr. Kelechi Okoro - Director
Alhaji Ahmed I. Yakasai - Independent Director
Mrs Joy Teluwo - Director
Mrs Olayinka Aletor - Director (retired 16th August 2023)
Chief Ede Dafinone - Director (resigned 16th August 2023)
Chief Anthony Aletor - Director (appointed 1st September 2023)
Mrs. Abisola Giwa-Osagie - Director (appointed 1st September 2023
Dr Daphne Dafinone - Director (appointed 1st October 2023)
Company Secretary Registrars

Mrs. Ifunanya Iwuagwu APEL Capital Registrars Limited
199, Ikorodu Road 8, Alhaji Bashorun Street
Obanikoro, Lagos Off Norman Williams Crescent,
South West, Ikoyi Lagos
Tel: 01-2932121
Mobile No: 07046126698
Registered Office www.apel.com.ng
NEM House
199, Ikorodu Road
Obanikoro, Lagos Bankers
Access Bank Plc
Polaris Bank Limited
First City Monument Bank
Ecobank Nigeria Limited
Tax Identification Number First Bank of Nigeria Limited
00010019-0001 Guaranty Trust Bank
FRCN Number Keystone Bank Limited
FRC/2012/0000000000249 Standard Chartered Bank Nigeria Limited
Sterling Bank Plc
United Bank for Africa Plc
Stanbic IBTC Plc
Heritage Bank Limited
Registration Number Fidelity bank Plc
Zenith Bank Plc
6971
Corporate Head Office Auditors

NEM House KPMG Professional Services
199, Ikorodu Road KPMG Towers,
Obanikoro, Lagos Bishop Aboyade Cole Street,
www.nem-insurance.com Victoria Island,
www.home.kpmg/ng
NEM Insurance Plc
Corporate Information Cont’d

Solicitors Reinsurers
Koya & Kuti Solicitors African Reinsurers Corporation
5th Floor, 3, Ajele Street Continental Reinsurance Corporation
Lagos. SWISS Reinsurance Company
WAICA Reinsurance Plc
Sola Abidakun & Co
186A, Igbosere Road,
Lagos Island, Lagos.
Subsidiary
Adeboye Badejo & Co NEM Asset Management Company
15, Salami street, Limited
Off Sojomein Talabi Avenue, 199, Ikorodu Road, Obanikoro,Lagos.
Ajuwon, Lagos. P.O. Box 654
Tel: 01-4489574
A & M Legal Practitioners
Plot 2, Block B, Palms, NEM Health Limited
Residences estate, 199, Ikorodu Road, Obanikoro, Lagos.
Lekki Phase II, Lagos. P.O. Box 654
Tel: 02013300150
NEM Insurance Plc
Corporate Information Cont’d
Branch Networks
Abuja - Garki Ibadan Kaduna

78, Emeka Anyaogu, 3rd Floor, Broking House Ground Floor, Turaki Ali House
Off Muhammadu Buhari Way, 1, Alhaji Jimoh Odutola Street 3, Kanata Road
Area 11, Garki, Abuja. PMB 5328, Ibadan P.O Box 822, Kaduna
Branch Manager: Michael A. Giwa Oyo State Tel: 062-217683
Mobile No: 08033208141 Tel: 02-2411992 Branch Manager: Eyitayo Ogboyomi
Branch Manager: Rufus Olumide Mobile Nos: 07028243118
Abuja – Wuse Mobile Nos: 08033463697
Plot 548, Ejura Close, Oshogbo
Wuse II, Abuja Jos 1st Floor, Former Afribank Building
Branch Manager: Mr. Martins Ilego- 10, Rwang Pam Street Opposite Fakunle Comprehensive
ma P.O. Box 1261 High School
Mobile Nos: 08077284843 Jos, Plateau State Fakunle, Gbongan/Ibadan Road
08078153184, 08037020262 Tel: 073-454216 Osogbo, Osun Sate
Branch Manager: Tel: 035-214844
Abuja – Central Business District Oyeronke Oyegbemile-Bello Branch Manager: Olubiyi Sonoiki
82, Imo State Liaison office Mobile No: 08077284946 Mobile Nos: 08038436231,
Opp. Federal Ministry of Finance 08077284898
Central Business District Lagos Mainland
Branch Manager: Davies O. Dada 199, Ikorodu Road Warri
Mobile Nos: 08150849411 Obanikoro, Lagos 57, Effurun, Sapele Road
Tel: 01-8171844, 01-4824737, Effurun, Delta State
Apapa 01-2710060 Branch Manager: Olayide Akinola
2nd Floor Branch Manager: Lucky Okparavero Mobile No: 08034221374
41/43 Itire Road Mobile Nos: 08076175287, 0802388188
Surulere, Lagos 08023123006
Tel: 01-7375546, 07028442653 08077284829 Port Harcourt
Branch Manager: Uzor Enubuzo House 2, Road 2
Mobile No: 08059301673, Kano Circular Road, Residential Estate
0802896842 3rd Floor, Union Bank Building Port Harcourt, Rivers State
37, Niger Street Tel: 084-233513
Calabar P.O. Box 1185, Kano Branch Manager: Akintan Kolawole
2nd Floor, 26, Etta-Agbor Road Tel: 064-649374 Mobile Nos: 08037236009
Calabar Branch Manager: Ahmed Bello
Cross River Mobile No: 08154971638 Anthony Retail
Branch Manager: Opeoluwa Olaku 08065294000 6A, Oyetola Idowu Street,
Mobile Nos: 08054642551, Sura Mogaji,
08033542048 Onitsha Ilupeju, Lagos
2nd Floor, (AIB) Building Branch Manager: Charity Orisakwe
Akure 107, Upper New Market Road, Onitsha Mobile Nos: 08033158144
3rd Floor, BIO Building Alagabaka Tel: 046-410736
Akure, Ondo State Branch Manager: Cyracus Akujobi
Tel: 034-215829 Mobile Nos: 08033457426,
Branch Manager: Kehinde Agbelade 07029219983
Mobile No: 08033509419
NEM Insurance Plc
Results at a Glance
2023 2022 restated Changes Changes
GROUP N'000 N'000 N'000 %
FINANCIAL POSITION
Cash and cash equivalents 8,002,993 8,878,011 (875,018) (10)
Financial Investments:
- At fair value through profit or loss 10,463,494 5,800,623 4,662,871 80
- At fair value through other comprehensive income 75,219 53,731 21,488 40
- At amortised cost 36,355,234 12,159,020 24,196,214 199
Insurance contract assets - - - -
Trade Receivable 450,143 672,356 (222,213) (33)
Reinsurance contract assets 9,433,042 9,472,703 (39,661) (0)
Other receivables and prepayments 2,148,365 723,429 1,424,936 197
Investment properties 2,353,946 1,813,768 540,178 30
Statutory deposit 320,000 320,000 (0) (0)
Intangible asset 54,110 15,721 38,389 244
Property, Plant and Equipment 4,202,175 3,886,188 315,987 8
Right-of-use Assets 609,015 149,520 459,495 307
Deferred tax asset - 252,724 (252,724) (100)
Total Assets 74,467,735 44,197,794
Insurance contract liabilities 25,285,724 14,674,166 10,611,558 72

Reinsurance contract liabilities - - - -
Other insurance contract liabilities 857,381 487,527 369,853 76
Borrowings 1,557,737 - 1,557,737 100
Other payables 2,093,470 1,575,721 517,749 33
Lease liabilities 473,241 35,999 437,242 1,215
Retirement benefit obligations - 29,497 (29,497) (100)
Income tax liability 1,155,152 379,224 775,928 205
Deferred tax 4,507,627 - 4,507,627 100
Total Liabilities 35,930,332 17,182,134
Share capital 5,016,477 5,016,477 - -
Statutory contingency reserve 9,837,510 7,186,595 2,650,915 37
Retained earnings 21,578,802 12,713,807 8,864,995 70
FVOCI reserve (46,277) (67,765) 21,488 (32)
Asset revaluation reserve 2,107,964 2,107,964 - -
Other Reserves - gratuity - 58,581 (58,581) (100)
Insurance finance reserve - - - -
Non-controlling interest 42,927 - 42,927 100
Total Equity 38,537,403 27,015,659
INCOME STATEMENT
Insurance Revenue 52,112,435 31,433,600 20,678,835 66
Insurance Service expenses (34,218,973) (22,693,835) (11,525,138) 51
Net expenses on Reinsurance contracts (12,795,475) (2,480,675) (10,314,800) 416
Insurance Service Result 5,097,987 6,259,090 (1,161,103) (19)
Interest revenue calculated using the effective interest
2,649,191 1,085,092 1,564,099 144
method
Dividend Income 687,422 470,062 217,360 46
Net foreign exchange gain 11,388,625 297,149 11,091,476 3,733
Net Fair value gain 4,807,948 174,088 4,633,860 2,662
Net credit impairment losses (213,317) (18,927) (194,390) 1,027
Net Investment result 19,319,869 2,007,464 17,312,405 862
Net Insurance finance expenses (154,305) (88,578) (65,727) 74
Net Insurance and Investment result 24,263,551 8,177,976 16,085,575 197
Other operating income 242,610 1,081,234 (838,624) (78)
Gain/(loss) on disposal of property, plant and equipment 13,657 (36,425) 50,082 (137)
Management expenses (5,279,154) (3,724,696) (1,554,458) 42
Finance cost (362,809) - (362,809) 100
Profit before taxation 18,877,855 5,498,089 13,379,765 243
Income taxes (5,929,070) (96,667) (5,832,403) 6,033
Profit for the year after tax 12,948,785 5,401,422 7,547,363 140
Total other comprehensive income/(loss) for the year 10,025 (45,067) 55,092 (122)
Total Comprehensive Income for the year 12,958,810 5,356,355 7,602,455 142
Profit attributable to Equity holders of the parent 13,020,855 5,401,422 7,619,433 141
Loss attributable to Non controlling interest (72,073) -
Basic earnings per share (Kobo) 260 108 152 141
Diluted earnings per shares (Kobo) 260 108 152 141
NEM Insurance Plc
Results at a Glance Cont’d

2023 2022 restated Changes Changes
PARENT N'000 N'000 N'000 %
FINANCIAL POSITION
Cash and cash equivalents 7,907,551 8,842,182 (934,631) (11)
Financial Investments:
- At fair value through profit or loss 10,463,494 5,800,623 4,662,871 80
- At fair value through other comprehensive income 75,219 53,731 21,488 40
- At amortised cost 36,355,234 12,159,020 24,196,214 199
Trade Receivable 354,531 672,356 (317,825) (47)
Reinsurance contract assets 9,433,042 9,472,703 (39,661) (0)
Other receivables and prepayments 1,875,423 581,362 1,294,060 223
Investment in Subsidiary 435,000 150,000
Investment properties 2,353,946 1,813,768 540,178 30
Statutory deposit 320,000 320,000 - -
Intangible asset 42,161 15,721 26,440 168
Property, Plant and Equipment 4,059,350 3,878,192 181,158 5
Right-of-use Assets 609,015 149,520 459,495 307
Deferred tax asset - 249,881 (249,881) (100)
Total Assets 74,283,965 44,159,059
Insurance contract liabilities 25,097,847 14,674,166 10,423,681 71

Reinsurance contract liabilities - - - -
Other insurance contract liabilities 783,901 487,527 296,374 61
Borrowings 1,557,737 - 1,557,737 100
Other payables 2,015,522 1,570,560 444,962 28
Lease liabilities 473,241 35,999 437,242 1,215
Retirement benefit obligations - 29,497 (29,497) (100)
Income tax liability 1,154,348 378,179 776,170 205
Deferred tax liabilities 4,505,697 - 4,505,697 100
Total Liabilities 35,588,294 17,175,928
Share capital 5,016,477 5,016,477 - -
Statutory contingency reserve 9,837,510 7,186,595 2,650,915 37
Retained earnings 21,779,997 12,681,279 9,098,718 72
FVOCI reserve (46,277) (67,765) 21,488 (32)
Asset revaluation reserve 2,107,964 2,107,964 - -
Other Reserves - gratuity - 58,581 (58,581) (100)
Insurance finance reserve - - - -
Total Equity 38,695,671 26,983,131
INCOME STATEMENT
Insurance Revenue 51,993,997 31,433,600 20,560,397 65
Insurance Service expenses (34,116,367) (22,693,835) (11,422,532) 50
Net expenses on Reinsurance contracts (12,795,475) (2,480,675) (10,314,800) 416
Insurance Service Result 5,082,155 6,259,090 (1,176,935) (19)
Interest revenue calculated using the effective interest 2,648,134 1,085,092 1,563,042 144
method
Dividend Income 687,422 470,062 217,360 46
Net foreign exchange gain 11,388,625 297,149 11,091,476 3,733
Net Fair value gain 4,807,948 174,088 4,633,860 2,662
Net credit impairment losses (213,317) (18,927) (194,390) 1,027
Net Investment result 19,318,812 2,007,464 17,311,348 862
Net Insurance finance expenses (154,305) (88,578) (65,727) 74
Net Insurance and Investment result 24,246,662 8,177,976 16,068,686 196
Other operating income 180,117 1,027,743 (847,626) (82)
Gain/(loss) on disposal of property, plant and equipment 13,657 (36,425) 50,082 (137)
Management expenses (4,912,943) (3,673,499) (1,239,444) 34
Finance cost (348,772) - (348,772) 100
Profit before taxation 19,178,721 5,495,795 13,682,926 249
Income taxes (5,924,145) (94,941) (5,829,204) 6,140
Profit for the year after tax 13,254,576 5,400,854 7,853,722 145
Total other comprehensive income/(loss) for the year 10,025 (45,067) 55,092 (122)
Total Comprehensive Income for the year 13,264,601 5,355,787 7,908,814 148
Profit attributable to Equity holders of the parent 13,254,576 5,400,854 7,853,722 145
NEM Insurance Plc
Message
from the
Chairman
NEM Insurance Plc
Chairman’s Statement
Distinguished
Shareholders,
representatives of
regulatory bodies here
present, invited Guests,
Ladies and Gentlemen.
I welcome you all to the
54th Annual General
Meeting of our great
Company
- NEM Insurance Plc.
Before we delve into the highlights of the meeting, Report and Financial Statements for the year ended
permit me to recognize and appreciate the 31st December 2023.
enormous and meaningful contributions enjoyed so
far from our immediate past chairman who retired Operating Environment
in August 2023, in person of Dr. Fidelis Ayebae, The Operating environment was volatile and
his unwavering commitment to the NEM project challenging because of the political activities prior
during his tenure as the chairman will remain to the presidential election which was conducted
indelible in the history of the company, even as the on 25th February 2023 and posed a whole lot of
past chairman, the board will continue to benefit uncertainties and challenges in terms of insecurity,
from his wealth of knowledge, experience and exchange rate fluctuations and other national issues.
leadership versatility. On behalf of the Board of
Directors & Management, your commitment to the Furthermore, the fuel subsidy removal was
growth of our dear company is well appreciated. announced by the elected president during his
inaugural speech on 29th May 2023, which brought
On that note, I have the honor and privilege as about hike in prices of goods and services, fuel
the Group Chairman to present to you the Annual pump price was increased from N195 to between
NEM Insurance Plc
NEM Insurance Plc
Chairman’s Statement Cont’d
N600 and N700 per liter depending on expansion, while the essence of agricultural The Group’s
the location, which affected the economy
generally during the year under review.
development cannot be overemphasized
for the purpose of food security.
Profit before Tax
(PBT) for the year
Despite all the challenges, NEM Insurance The economy grew slower than the growth
under review was
Plc soared higher than ever before, and
because of the spectacular insurance
revenue generated, our company led the
rate in population, an indication of growing
poverty. It also meant that the expansion
did not create enough job opportunities
N18.9b
and
general business during the year. for the unemployed population. External
This trend of excellent performance

reserve stood at USD 33Billion in 2023
as against US$37.08Billion in 2022, this N5.5b
is expected to be sustained with the is a decrease of 12%. in 2023 and 2022
support from all stakeholders and the giant respectively,
strides demonstrated by the government The official exchange rate of the Dollar to
at all levels to fight corruption, improve Naira was unstable during the year under
an increase of
security, tackle unemployment, diversify
the economy, enhance climate resilience,
and boost the living standard of citizens.
review. It was about N899.89/$ against
N448.55/$ in 2022. 244%.
The Monetary Policy Rate was 18.75%
I am delighted to announce to you that in 2023 against 16.5% in 2022 while the
another subsidiary was added to the inflation rate was 28.9% in 2023 against
group in 2023 (NEM Health Limited) 21.34 in 2022.
which commenced operation in 2023.
All hands must be on deck to take all our Insecurity, incessant power outage,
subsidiaries to greater heights. exchange rate fluctuations and high rate
of inflation contributed to low foreign
Although, so much is still being expected direct investment, while many of the
as Nigeria is ranked 38th in the world manufacturing and telecommunication
GDP ranking and the largest in West companies recorded huge exchange
African economy, the country’s GDP loss in 2023.
grew by 2.74% in 2023 against 3.10%
in 2022 according to the National Bureau Nevertheless, The Nigeria Exchange
of Statistics. (NGX) market capitalization recorded a
significant improvement during the year
The average price per barrel of Brent under review, this was N39.6 trillion in
crude oil was USD82.49 in 2023 against 2023 as against N27.9 trillion at the end
US$84.78 per barrel in 2022. of year 2022.
In real terms, the non-oil sector contributed Insurance Revenue

about 95.30% to the Nation’s GDP in the Insurance revenue grew from N31.4billion
fourth quarter of the year 2023, lower in 2022 to N52.1billion in 2023, an increase
than 95.66% in the same quarter of 2022. of 66% over the previous year.
Non-oil sources remained the focal point

for Nation’s economic recovery and
NEM Insurance Plc
Investment Income from regulatory authorities and adopted The Parent

IFRS 17 in presenting its 2023 financials.
An increase of 106% was achieved relative
This required significant changes to
Company’s
to 2022. The total investment income in
the actuarial models, processes and
PBT was
N19.2b
2022 was N1.6b while that of 2023 was
N3.3b accounting treatment which was quite
tasking, time-consuming and resource
Claims Expenses intensive.
for 2023 and
N5.5b
The Claims paid during the year was
As part of regulatory compliance also,
N15.7b as against N12.3b in 2022; an
we have complied with the Security
increase of 28% over that of the preceding
& Exchange Commission’s directive on
year. The Claims ratio for 2023 was 30%
Internal Control Over Financial Reporting for 2022,
while that of 2022 was 40%, a decrease
(ICFR). an increase of
249%
of 25%.
Profit for the Year
Management Expenses
The Group’s Profit before Tax (PBT) for
The management expenses increased the year under review was N18.9Billion
from N3.7b in 2022 to N5.3b in 2023, and N5.5Billion in 2023 and 2022
43% increase was due to the impact of respectively, an increase of 244%. The
inflation and business growth during the Parent Company’s PBT was N19.2Billion
year under review. for 2023 and N5.5Billion for 2022, an
increase of 249%.
Regulatory Guidelines and
standard implementation. Financial Assets, Total Asset &
As part global business ethics, standards Total Equity
and best practices continue to evolve, The position of the Group Financial Assets
Nigerian insurance companies are between 2022 and 2023 increased
transiting to the International Financial by 160% while Total Assets and Total
Reporting Standard (IFRS) 17, which sets Equity also improved by 68% and 43%
out the principles for reporting insurance respectively.
contracts. The adoption of IFRS 17 was
part of measures to improve reporting Earnings Per Share (EPS)
practices, transparency, comparability,
The Group’s EPS for the year under review
and disclosures in line with international
was 260kobo while that of the previous
best practices.
year was 108kobo. Parent Company’s EPS
for 2023 was 264k against the preceding
IFRS 17 is effective for the annual reporting
year of 108k.
period beginning from 1st January 2023.
NEM Insurance Plc is a leading insurance
provider in Nigeria, offering all forms
Dividend
of general insurance products with a The Board is recommending a dividend of
history of successful financial reporting 60 kobo per N1 ordinary shares amounting
under previous accounting standards, to N3,009,886,660.20, if approved at this
the company realized the importance of AGM, payable to shareholders subject
embracing IFRS 17 as well as the directives to deduction of withholding tax at the
appropriate rate.
NEM Insurance Plc
Human Capital Development Prospects

In line with the company’s policy on As part of our expansion strategy, our plan
human capital development, more than to set up a viable life assurance company
96% of our workforce attended various is in progress.
training courses both local and foreign to
enhance better performance on the job. Conclusion
Also, deserving members of staff were
Our excellent and progressive performance
promoted during the year.
is indeed commendable, and we give glory
to Almighty God who has consistently
At this juncture, it is pertinent to mention
been our strength and helper. I also want
to you that Mr. Andrew Ikekhua was
to use this opportunity to appreciate the
elevated to the position of Managing
MD/CEO, management, and members
Director / Chief Executive Officer in 2023.
of staff for their continued dedication
Before his appointment in July, he was
and hard work in achieving the set goals.
the Executive Director (Marketing). Also,
Also, the commitment and cooperation
Mr. Idowu Semowo was promoted from
from the Board is highly appreciated. To
To my beloved the position of General Manager to the
my beloved shareholders who have been
shareholders rank of Executive Director (Finance &
consistent in their zest to add value to the
who have been Investment) during the year under review.
growth of the company, you are greatly
consistent in In the course of the year, aside from our
appreciated.
their zest to former chairman, Dr Fidelis Ayebae who
Our ever-loyal Brokers, Agents, Re-
add value to retired having completed his tenure,
insurers, and our numerous clients, you
the growth of Mrs. Olayinka Aletor also retired from
are all highly appreciated.
the Board having also completed her
the company, tenure. In addition, Chief Ede Dafinone
you are greatly resigned from the Board to enable him
Once again, a very big thank you and
God bless you all.
appreciated. focus on his national assignment having
been elected as a Senator of the Federal
Republic of Nigeria.
Our ever-
loyal Brokers, I want to use this opportunity to express
Agents, Re- my appreciation to all of them for the
insurers, and massive support and contribution they MR. TOPE SMART
our numerous made towards the growth and development GROUP CHAIRMAN
of the company. To strengthen the Board,
clients, you three new members have been added and
are all highly they will be presented to the shareholders
appreciated. for ratification as the meeting progresses.
YOUR BEST COVER FOR
NEM Insurance Plc
MD/CEO
Report
Despite the economic headwinds
in 2023, the insurance industry
recorded a growth rate of 4.82%
year-on-year according to the
National Bureau of Statistics. The
new motor insurance rate, which
was introduced by the National
Insurance Commission (NAICOM)
in December 2022, received full
support of the operators. The
awareness of the new rate by
Nigerian Insurers Association
(NIA) and the regulator’s position
on full compliance contributed
immensely to the giant growth
recorded in motor insurance
portfolio and overall performance
of the industry in 2023.
NEM Insurance Plc
NEM Insurance Plc
MD/CEO Report
As the global economy progressed the election period, the Central Bank The company
toward a full recovery from the impact of Nigeria (CBN) monetary policies, recorded a
of the 2020 and 2021 COVID-19
pandemic with a positive economic
which included naira redesigning
and cashless policies, had negative
growth rate of
growth index projection, the Russian-
Ukraine war broke out in 2022. The
ripple effect is still being felt across
implication on the standard of living of
the people due to significant scarcity of
the naira. Consequently, the activities
88% in
gross premium
the world owing to the importance of of the nation’s micro-economy were written which
both Russia and Ukraine in the global
food chain and security. While the
seriously slowed down in Q1 and Q2
of 2023.
amounted to
UN was still making frantic effort to
restore peace to the warring nations,
on October 7, 2023, another war
The post-election period
characterized by persistent high
was N62.7bn
against
N33.4bn
broke out between Israel and the inflation and food insecurity as the
Hamas, a political-religion movement economy showed no sign of recovery.
in the Palestinian State. This resulted The policies by the new government
in an abrupt security concern in the such as subsidy removal, adjustment recorded in 2022.
Middle East and across the world, of MPR from 18.50% to 18.75% and
with a significant effect on the aviation flexible exchange rates could not
industry and global tourism businesses. ameliorate the economic situation
Despite these global security setbacks as the Naira experienced constant
in 2023, the global economy was devaluation against the Dollar. The
able to record a growth rate of 3.1% implication of subsidy removal led
owing to the positive impact of the to an increase in pump price of the
fast-growing Asian economy, contrary premium motor spirit (PMS), which
to predictions of global economic is the fuel that largely drives Nigeria
watchdog, the International Monetary micro-economy and has a direct
Fund (IMF) which had earlier projected consequence on the food security in
a global economic growth rate to fall the country.
from estimated 3.5% to 3%.
While the headline inflation rate
On the African regional level, the rose to 28.92% in December 2023
democratically elected governments from 21.82% in January 2023,
were toppled by military junta in the the household purchasing power
Republic of Niger and Gabon which dropped with a huge gap between
led to the suspension of the countries the nominal income and real income.
from the Economic Community of As the demand for dollars continued
West African States (ECOWAS). The to mount pressure on the naira in
sanctions resulted to high economic the forex market, capital importation
downturn in Republic of Niger further declined to $3.91 billion in
with a serious impact on the other 2023, which is the lowest since 2007
neighbouring sub-Sahara African according to the National Bureau of
countries economies. Statistics. Consequently, the foreign
reserves declined from $34.22 billion
On the local scene, the change in power in January 2023 to $32.89 billion in
in the year 2023 had a huge impact on December 2023. The Gross Domestic
the Nigerian economy. In the heat of Product (GDP), which measures the
NEM Insurance Plc
MD/CEO Report Cont’d
economic growth of the country, also insurers’ business such as operations, Our total
dropped from 3.1% in 2022 to 2.74% finance, and actuarial practices. The
in the year 2023. The economy was insistence on the adoption of this
assets and
largely driven by service sectors new accounting system for year 2023 shareholders’
with growth rate of 4.18%, while the financial report by National Insurance fund recorded
oil sector’s contribution and growth Commission (NAICOM) has caused a leap of
68%
rate declined by 4.82% and 2.22% a slight delay to the financial report
respectively in the year 2022. approval process.
The country was also exposed to high The National Insurance Commission
and
migration of talents popularly referred
to as “JAPA”. The banking, insurance,
medical and information technology
(NAICOM) still maintained their silence
on the industry’s new recapitalization
regime but rather concentrated their
44% for
2023 and 2022
sectors were mostly affected by the
“Japa Syndrome” in 2023. While the
effort on Risk Based Supervision
(RBS) in 2023. The supervision
respectively
National Bureau of Statistics pegged option according to the National
the unemployment rate at 4.2%, Insurance Commission (NAICOM) is
insecurity took a new dimension with geared to reduce the risk associated
a high wave of kidnapping across the with the industry and ensure that all
country especially in the Northern the control functions are effective.
states due to the activities of illegal Other regulatory actions in 2023
mining in the Northwest, banditry includes introduction of regulatory
and unabated Fulani herdsmen and sandbox operational guideline, new
farmers’ conflict. market conduct guidelines for Takaful
Insurance operators, and Enterprise
Despite the economic headwinds in Risk Management Framework for
2023, the insurance industry recorded Takaful operators in Nigeria.
a growth rate of 4.82% year-on-year
according to the National Bureau of Year 2023 remains a historical Total Assets
Statistics. The new motor insurance milestone in NEM Insurance Plc. Your grew from
N44bn
rate, which was introduced by the company did not only meet her target
National Insurance Commission for the year but rose to the number
(NAICOM) in December 2022, received one position in general business
full support of the operators. The insurance market in Nigeria. All our to
awareness of the new rate by Nigerian
Insurers Association (NIA) and the
regulator’s position on full compliance
performance indices for the year came
positive. The company recorded a
growth rate of 89% in gross premium
N74bn
while
contributed immensely to the giant written which amounted to N62.7bn
growth recorded in motor insurance against N33.4bn recorded in 2022.
Shareholders’
portfolio and overall performance of Our total assets and shareholders’ fund grew
the industry in 2023. fund recorded a leap of 68% and 44% from
N27bn
respectively. Total Assets grew from
Year 2023 also marked the beginning N44bn to N74bn while Shareholders’
of the implementation of the IFRS 17 fund grew from N27bn to N39bn.
accounting method for all insurance
to
operators leading to substantial
changes across various aspects of
A sterling performance was also
recorded on our profit before tax N39bn
NEM Insurance Plc
MD/CEO Report Cont’d
Year 2023 with a growth rate of 249% from Let me sincerely appreciate our
remains a N5.5bn in 2022 to N19.2bn in 2023. immediate past GM/CEO, now
historical Meanwhile the total claim of N15.6bn Chairman Mr. Tope Smart for the
milestone in was settled with a growth rate of 27% great work he has done and good
NEM Insurance from N12.3bn paid out in 2022. During foundation of excellence he has
Plc. Your the year, the Global Credit Rating laid for this company. The current
company did Agency of South Africa upgraded our milestone of NEM Insurance Plc is a
not only meet financial strength from AA minus to AA result of his sacrifice, doggedness,
her target with stable outlook. This new rating and quality leadership. It is our plan
for the year indicates our strong financial capacity to consolidate on this great foundation
but rose to to meet our obligations and plan big in and ensure the company maintains
the number the market. It also improves our brand its enviable position. I also thank our
one position acceptability with better chances of immediate past Chairman Dr. Fidelis
in general winning more corporate businesses. Ayebae and all Board of Directors
business As part of our corporate strategy, five for their unflinching support to the
insurance new retail products were developed Management.
market in and deployed into the market after
Nigeria. NAICOM approval. More attention Finally, I appreciate our shareholders,
All our was given to the digital distribution of business partners, especially our
performance our commoditized products through Brokers and customers for their
indices for various business partnerships. The loyalty and continued support. More
the year came company sustained her leadership importantly, I salute the excellent
positive. position in motor insurance with a huge spirt of all staff of NEM Insurance
gap ahead of the other underwriters. Plc, their support is very instrumental
This giant strike attracted a recognition to our success. We shall continue
of best CEO of the year Award which to uphold the core values of this
was won by our immediate past GMD/ organization without compromising
CEO from Business Day Newspaper our commitment in protecting the
Almond Production Insurance of the interest of our valuable shareholders.
Year Award. Above all, I give God Almighty all the
Glory for His protection and for His
Going forward, we shall continue to faithfulness all the time.
press home our strategic objectives
while leveraging on our strength built The future of this Company is very
on reputation, branch acceptability bright. We shall continue to strategize
and strong financial capacity. and come up with initiatives that
Although the year ended with a strong will add value to the interest of all
economic headwind and persistent stakeholders, while we continue to
increase in inflation rate, however, the review our processes from time to time
gross domestic product of 3.46% in as we strive towards excellence in all
Q4, 2023 and growth rate projection fronts of our operations.
of 3.3% from initial 2.7% by World
Bank indicates a sigh of relief for the
country in 2024. We shall exploit to
our advantage, all opportunities with a
positive outlook in the economy and ANDREW IKEKHUA
recent regulatory guidelines. Managing Director/CEO
028
NEM Insurance Plc
REPORT OF DIRECTORS
For the Year ended 31 December, 2023
The directors hereby present their annual reports on the affairs of NEM Insurance Plc (“the Company” or “the
Parent”) together with its subsidiaries (“the Group”) Group and Company’s consolidated and seperate financial
statements with the independent auditor’s report for the year ended 31 December 2023.
1. LEGAL FORM
The company was incorporated in 1970 as a Nigerian Company in accordance with the Companies Act of
1968. The company became listed on the Nigerian Stock Exchange in 1989 following its privatization by
the Federal Government of Nigeria. The company was into Life and Non- Life business but following the
recapitalization exercise in 2007, the company merged with Vigilant Insurance Company Ltd to transact all
classes of General Insurance.
2. PRINCIPAL ACTIVITIES AND CORPORATE DEVELOPMENT

The Company is engaged in the business of General Insurance which includes marine and aviation, motor
vehicle, fire and burglary, oil and gas, engineering, bond, general accident, and agriculture. The company has two
subsidiaries: NEM Asset Management Company Limited, and NEM Health Limited. NEM Asset Management
Company Limited engages in investment business of all kinds including Vehicle Leasing, Machinery Acquisition,
Hire Purchase of diverse assets etc. while NEM Health Limited is involved in the provision of health care
services through health care providers and for that purpose is accredited by the National Health Insurance
Authority. There have been no material changes to the group’s business from the previous year.
SUMMARY OF THE RESULT Group Parent

Operating result 2023 2022 2023 2022
N’000 N’000 N’000 N’000
Insurance Revenue 52,112,435 31,433,600 51,993,997 31,433,600

Investment Result 19,319,869 2,007,464 19,318,812 2,007,464
Other revenue 256,267 1,044,809 193,774 991,318
Total Revenue 71,688,571 34,485,873 71,506,583 34,432,382
Insurance Service expenses 34,218,973 22,693,835 34,116,367 22,693,835
Net expenses on Reinsurance contracts 12,795,475 2,480,675 12,795,475 2,480,675
Net insurance finance expenses 154,305 88,578 154,305 88,578
Management and other expenses 5,279,154 3,724,696 4,912,943 3,673,499
Finance cost 362,809 - 348,772 -
Total Insurance and other expenses 52,810,716 28,987,784 52,327,862 28,936,587
Profit before tax 18,877,855 5,498,089 19,178,721 5,495,795

Income tax expense (5,929,070) (96,667) (5,924,145) (94,941)
Profit For the Year 12,948,785 5,401,422 13,254,576 5,400,854
Other Comprehensive income/(loss) for the year 10,025 (45,067) 10,025 (45,067)
Total comprehensive income for the year 12,958,810 5,356,355 13,264,601 5,355,787
Basic Earnings Per Share (Kobo) 260 108 264 108
Diluted Basic Earnings Per Share (Kobo) 260 108 264 108
Profit attributable to Equity holders of the parent 13,020,855 5,401,422 13,254,576 5,400,854
Loss attributable to Non-controlling interest (72,073) - - -
NEM Insurance Plc
REPORT OF DIRECTORS Cont’d

3. CORPORATE GOVERNANCE
Introduction
The business of NEM Insurance Plc is conducted under a corporate governance structure that incorporates
the Board, the Committees, and a functional management system with the Board as the apex decision making
body. This is in accordance with the Code of Corporate Governance for the Insurance Industry in Nigeria, the
Securities and Exchange Commission (SEC) and best practices. At NEM Insurance Plc, we have ensured that
our business activities are implicitly transparent.
For the financial year under review, 2023; the Board is of the opinion that NEM Insurance Plc has in all material
respects, complied with the requirements of the Code of Corporate Governance for Insurance industry in
Nigeria.
A summary of the key components of our Corporate Governance system is provided hereunder.
The Board
The Board of the company is responsible for establishing the policy framework that would ensure that the
Company fully discharges its legal, financial, as well as regulatory responsibilities. The Board monitors the
performance of the Company, the effectiveness of the governance structure under which it operates and
renders the Accounts of its stewardship of the company’s resources to the shareholders.
The Board of Directors is composed of a mix of executives and non-executives whereby the number of
non-executives exceeds the number of executives while the position of the Chairman of the Board is clearly
delineated from that of the Chief Executive Officer.
The Chairman
The Chairman of NEM Insurance Plc was duly appointed. The Chairman’s primary role is to ensure that the
board carries out its governance role in the most effective manner. The Chairman manages the operations of
the Board effectively to ensure that members made concrete contributions towards the decisions of the Board
and that the Board operates in harmony.
The Chief Executive Officer

The CEO maintains the day-to-day operations of the company and implements the strategic and financial plans
with the cooperation and support of the Board. The CEO ensures transparency and the effective operation and
management of the company’s resources to ensure profitability of its business operations and that all significant
matters affecting the company are brought to the attention of the Board.
Independent Director
The Board has an Independent Director who has remained independent since his appointment.
Annual Board Appraisal

In accordance with the requirements of the NAICOM Code, the Board renewed the mandate of SIAO partners
to conduct the appraisal of its performance for 2023. The Board embarked on implementation of some of the
recommendations of the last Appraisal Report.
(A) ACTIVITIES OF THE BOARD

Board Meetings
The Board meets regularly to discuss pertinent issues affecting the company and performs other activities
and responsibilities that fall within its purview as provided in the Company’s Article of Association and by other
NEM Insurance Plc

relevant regulatory authorities. Meetings were well attended with sufficient notice given well in advance of the
meetings. Adequate time was also allotted to meetings as required to enable in-depth deliberations of items
listed on the agenda.
The board met five times during the year. The composition and attendance are stated below:
Meeting Meeting Meeting Meeting Meeting
Dated Dated Dated Dated Dated
S/N Name of Director Status 13/03/2023 27/04/2023 16/08/2023 26/10/2023 13/12/2023
Group Chairman
1. Mr. Tope Smart     
(WEF 1st August 2023)
Chairman
2. Dr. Fidelis Ayebae   Retired Retired Retired
till 16th August 2023
Managing Director / Chief
3. Mr. Andrew Ikekhua Executive Officer     
(WEF 3rd July 2023)
Executive Director
4. Mr. Idowu Semowo (Finance & Investment) – –   
(WEF 16th August 2023 )
Alhaji Ahmed I. Non – Executive Director
5.     
Yakasai mni (Independent)
6. Mrs Joy Teluwo Non – Executive Director     
7. Mr. Papa Ndiaye Non – Executive Director     
8. Mr. Kelechi Okoro Non – Executive Director     
9. Chief Ede Dafinone Non – Executive Director   Resigned Resigned Resigned
10. Mrs. OlaYinka Aletor Non – Executive Director   Resigned Resigned Resigned
Non – Executive Director
11. Dr. Daphne Dafinone – – –  
(WEF 1st September 2023)
Non – Executive Director
Chief (Dr) Anthony
12. (WEF 1st September 2023) – – –  
Aletor CON, mni (JP)
Mrs. Abisola Non – Executive Director

13. – – –  
Giwa – Osagie (WEF 1st October 2023)
Note: WEF – With Effect From,  Present,  Present, – Yet to come on board
• Mr. Tope Smart transitioned from his former role as Group Managing Director to assume the responsibilities of Chairman on 1st August 2023
• Dr. Fidelis Ayebae retired from the position of Chairman of the board on 16th August 2023.
• Mrs. Olayinka Aletor,mni retired from the Board as a Non-Executive Director on 16th August 2023.
•
Chief Ede Dafinone, subsequent to his election as a Senator of the Federal Republic of Nigeria, resigned from the board on 16th August 2023,
aligning with established corporate governance principles.
• Mr. Tope Smart transitioned from his role as Group Managing Director to assume the responsibilities of Chairman on 1st August 2023.
• Mr. Andrew Ikekhua was elevated from the role of Executive Director (Marketing) to the position of Managing Director/CEO on 3rd July 2023.
•
Mr. Idowu Semowo was elevated from the position of General Manager (Finance & Investment) to Executive Director (Finance & Investment) on 16th
August 2023.
• Dr. Daphne Dafinone commenced her tenure on the board effective 1st September 2023.
• Chief (Dr.) Anthony Aletor CON mni (JP) also commenced his tenure on the board effective 1st September 2023.
• Mrs. Abisola Giwa-Osagie joined the board on 1st October, 2023.
NEM Insurance Plc

(B) BOARD COMMITTEES

The Board’s Committee structure is as specified in the NAICOM Code and adequate for the complexity of the
operations of the company. The Committees and committee members for the 2023 financial year are as contained
hereunder:
•• Finance, General Purpose, and Investment Committee
•• Enterprise and Risk Management Committee
•• Strategy and Corporate Governance Committee
•• Remuneration, Nomination and Governance Committee
•• Audit and Compliance Committee
In the year under review, the above-mentioned Committees were provided with specified Terms of Reference to
guide their activities.
Finance, General Purpose, And Investment Committee
The key responsibilities of this Committee are:
•• To provides financial analysis, advice and oversight of the company’s budget.
•• Setting investment policies and guidelines as well as to ensure that the company is operating with the required
financial resources to enable seamless execution of projects and services.
•• Monitoring sources of income generation
•• Overseeing investment and reinvestment of the funds of the company
•• Ensuring integrity of financial reporting
•• Expense control.
The Committee met four times during the year. The composition and attendance are stated below:
Meeting Meeting Meeting Meeting
Dated Dated Dated Dated
S/N Name of Director Status 13/03/2023 26/04/2023 21/07/2023 11/12/2023
1. Mrs. Olayinka Aletor Chairman till 16th August 2023    –

Chief (Dr) Anthony Aletor
2. Chairman WEF 26th October 2023 – – – 
CON, mni (JP)
3. Mr. Tope Smart Member till 1st August 2023    –
4. Alhaji Ahmed Yakasai Member    
5. Mr. Kelechi Okoro Member    
6. Mr Andrew Ikekhua Member WEF 26th October 2023 – – – 
7. Mr. Idowu Semowo Member WEF 26th October 2023 – – – 
* Chief Anthony Aletor became the Chairman of the committee on 26th October 2023.
** Mrs Olayinka Aletor was the Chairperson of the Committee of the board until her retirement from the board on 16th August 2023.
*** Mr Tope Smart was a member of the committee until he became the Chairman of the company on 1st August 2023
**** Mr Andrew Ikekhua and Mr Idowu Semowo both became members of the committee on 26th October 2023.
Enterprise and Risk Management Committee.

The key responsibilities of this Committee are:
•• To determine and manage business risks as well as develop policies that stipulates the risk profile and risk
limits of the company.
•• To develop, recommend and implement strategic management plans.
•• Review policies as required by the emerging dynamics of the operating environment.
•• To study and advice on the strategic plans for the long-term development of the company.
NEM Insurance Plc

•• nsure that all the departments of the company are adequately sensitized to the level of risks inherent in their
E
operations.
•• Conduct annual local-level assessment of risks or opportunities towards developing and implementing a risk
response plan.
The Committee met twice during the year. The composition and attendance are as stated below:
Meeting Dated Meeting Dated
S/N Name of Director Status 26/04/2023 18/10/2023
1. Chief Ede Dafinone Chairman till 16th August 2023  Resigned

2. Dr. Daphne Dafinone Chairman WEF 26th October 2023 – –
3. Mrs. Joy Teluwo Member  
4. Alhaji Ahmed Yakasai Member  
5. Mr Andrew Ikekhua till 26th October 2023 Member  
6. Mr Idowu Semowo Member WEF 26th October 2023 – –
* Dr Daphne Dafinone became the chairperson of the committee on 26th October 2023, while Mr idowu Semowo became a member of the committee
on the same 26th October 2023.
** Chief Ede Dafinone was the Chairman of the committee until his retirement from the board on 16th August 2023.

Strategy and Corporate Development Committee
The terms of the Reference of the Committee are:
•• Develop an overall strategic plan for the company by prioritizing key issues based on the input from manage-
ment.
•• To work with the Company’s management to develop corporate strategy, review and recommend strategic
investment transactions proposed by the Company’s management.
•• Monitor progress towards the achievement of strategic goals as well as review key strategic projects.
•• Oversight of the company’s investment activities.
•• Researching and making recommendations to the Board on long-term development strategies and plans of
the company.
The Committee met once during the year. The Composition of Committee and Attendance are as stated below:
Meeting Dated
S/N Name of Director Status 21/07/2023
1. Mrs Olayinka Aletor Chairman 

2. Mr. Kelechi Okoro Chairman WEF 26th October 2023 
3. Mr. Tope Smart Member till 1st August 2023 
4. Mr. Andrew Ikekhua Member 
5. Mrs Abisola Giwa – Osagie Member WEF 26th October 2023 –
6. Mr Idowu Semowo Member WEF 26th October 2023 –
* Mr. Kelechi Okoro became the chairman of the committee on 26th October 2023.
** Mrs Olayinka Aletor was a member of the committee until her retirement from the board on 16th August 2023.
*** Mr Tope Smart was a member of the committee until he became the Chairman of the company on 1st August 2023.
**** Mr Idowu Semowo became a member on 26th October 2023
***** Mrs Abisola Giwa-Osagie became a member on 26th October 2023
NEM Insurance Plc

Remuneration, Nomination and Governance Committee

The terms of the Reference of the Committee are:
•• To ensure the company has a succession policy and plan in place for the board, executive management and
senior management positions as well as provide adequate oversight on succession plans applicable in the
company.
•• Make recommendations to the board on matters pertaining to appointments, removals, and resignations of
executive and non-executive directors and ensure that the process of appointing executives is credible and
transparent.
•• To advise the Board on the Company’s compliance with NAICOM Corporate Governance Guidelines, SEC
Corporate Governance Codes, and the Nigerian Exchange Listed Company Rules and other applicable gov-
ernance requirements.
•• Establish board diversity target relating to the composition of the board and senior management as well as
develop pathways for the board to tap into new, diverse networks of qualified board candidates.
•• Routinely review the organisational diversity scorecard and develop an inclusive culture.
The Committee met twice during the year.

The Composition of Committee and Attendance are as stated below:
Meeting Dated Meeting Dated
S/N Name of Director Status 26/07/2023 25/10/2023
1. Mr Papa Ndiaye Chairman  

2. Mrs Joy Teluwo Member  
3. Alhaji Ahmed Yakasai Member  
4. Dr. Daphne Dafinone Member – –
5. Chief Anthony Aletor Member – –
* Alhaji Ahmed Yakasai ceased to be a member of the committee due to the board reconstitution on 26th October, 2023.
** Dr Daphne Dafinone became a member of the committee on 26th October 2023.
*** Chief (Dr.) Anthony Aletor became a member of the committee on 26th October 2023.

Audit And Compliance Committee
The NAICOM code makes the following provisions in respect of the responsibilities of the Audit and Compliance
Committee:
•• Be responsible for the review, integrity and transparency of the company’s financial reporting and compliance
practices.
•• Oversee the company’s system of internal controls, including controls over financial reporting, internal controls
and risk management functions by ensuring compliance with laws, regulations, and company policies.
•• Review the terms of engagement and recommend the appointment, reappointment and compensation of
External Auditors and their external audit results to ensure they are in line with generally accepted auditing
standards.
•• Ensures that appropriate policies and processes are in place for the prevention and identification of fraud, such
as asset misappropriation, corruption, and financial statement.
NEM Insurance Plc

The Committee met five times during the year and the composition and schedule of attendance are as follows:
Meeting Meeting Meeting Meeting Meeting
Dated Dated Dated Dated Dated
S/N Name of Director Status 13/03/2023 08/06/2023 14/06/2023 4/10/2023 19/10/2023
1. Mr. Taiwo Oderinde Chairman     

2. Mr. Samuel Mpamaugo Member     
3. Mr. Christopher Ogba Member     
4. Mrs Olayinka Aletor Member    – –
5. Mr. Kelechi Okoro Member     
6. Mrs. Joy Teluwo Member     
Member
7. Mrs. Abisola Giwa – Osagie – – – – –
WEF 26th October 2023
* Mr Taiwo Oderinde became the chairman of the committee on 14th June, 2023
** Mr Samuel Mpamaugo was the Chairman of the committee till 8th June 2023
*** Mrs Olayinka Aletor was a member of the committee until her retirement from the board on 16th August 2023.
**** Mrs Joy Teluwo was a member of the committee until the board reconstitution on 26th October 2023
***** Mrs Abisola Giwa-Osagie became a member of the committee on 26th October 2023.
4. DIVIDEND
Subsequent to the year-end and subject to approval at the next annual general meeting, the directors proposed
a final dividend of 60 kobo per share (2022: 30 kobo) on the issued and paid-up capital of N5bn (2022: N5bn)
ordinary shares of N1.00 each for the year ended 31 December 2023 (see note 21). This amounts to N3bn
(2022: N1.5bn) and this final dividend has not been reflected in the financial statements. Payment of dividends
is subject to withholding tax at the rate of 10% in the hands of the recipient.
5. DIRECTORS AND DIRECTORS’ INTEREST

i. Directors
In pursuant to Section 303 of the Companies and Allied Matters Act 2020, no Director has disclosed any
declarable interest in any contract with the Company during the year.
ii. Directors’ Interest
The interest of the Directors in the issued share capital of the Company as recorded in the register of share-
holders and/or as notified by them for the purposes of Section 301 of the Companies and Allied Matters Act
2020 are as follows:
Directors’ Interest December 31st 2023

S/N Name of Director Direct Indirect Total
1 MR. TOPE SMART 120,411,652 - 120,411,652
2 MR ANDREW IKEKHUA 1,362,856 - 1,362,856
3 MR. IDOWU SEMOWO 15,270,847 - 15,270,847
4 ALHAJI AHMED I. YAKASAI - - -
5 MR PAPA NDIAYE - 1,499,926,852 1,499,926,852
6 MR KELECHI OKORO - - -
7 MRS JOY TELUWO 253,044 320,201,645 320,454,689
8 MRS ABISOLA GIWA-OSAGIE 13,986,656 - 13,986,656.00
9 CHIEF DAPHNE DAFINONE - 350,023,219 350,023,219
10 CHIEF (DR) ANTHONY ALETOR - 364,318,306 364,318,306
11 FIDELIS AYEBAE 23,155,158 - 23,155,158
174,440,213 2,534,470,022 2,708,910,235
NEM Insurance Plc

Directors’ Interest as at December 31, 2022

1 MRS JOY TELUWO 106,990,287 320,201,645 427,191,932
2 MRS. YINKA ALETOR NIL 364,318,306 364,318,306
3 CHIEF EDE DAFINONE NIL 350,023,219 350,023,219
4 MR. TOPE SMART 120,411,652 NIL 120,411,652
5 DR. FIDELIS AYEBAE 23,155,158 NIL 23,155,158
6 MR ANDREW IKEKHUA 1,362,856 NIL 1,362,856
7 ALHAJI AHMED I. YAKASAI NIL NIL NIL
8 MR PAPA NDIAYE - 1,499,926,852 1,499,926,852
9 MR KELECHI OKORO -
10 MR. ODAMAH MOMOH 2,225,120 NIL 2,225,120
11 MR. ADEBAYO SUNDAY JOSHUA 3,275,501 NIL 3,275,501
257,420,574 2,534,470,022 2,791,890,596
6. DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for the preparation of the consolidated financial statements which gives a true
and fair view of the state of affairs of the Group at the end of each financial year and of the income statement
for that year and comply with the Insurance Act CAP I17 LFN 2004, Financial Reporting Council of Nigeria
(Amendment) Act 2023 and the Companies And Allied Matters Act, 2020.
7. SHAREHOLDING
The Registrar have advised that the issued share capital of the Company at of 31st December 2023 were
beneficially held as follows:
Share Range Analysis as of 31st December 2023
% of Total % of Total
Shareholding Range No of Holders Holders Share Holdings
1 1,000 5487 12.99 2,906,232 0.06
1001 5,000 10886 25.78 33,249,056 0.66
5001 10,000 7977 18.89 64,438,297 1.28
10001 50,000 13063 30.93 317,977,756 6.34
50001 100,000 2759 6.53 211,410,899 4.21
100001 500,000 1718 4.07 355,356,674 7.09
500001 1,000,000 170 0.40 127,572,905 2.54
1000001 5,000,000 139 0.33 276,139,110 5.50
5000001 10,000,000 15 0.04 106,806,097 2.13
10000001 50,000,000 10 0.02 186,456,006 3.72
50,000,001 100,000,000 9 0.02 1,862,738,140 37.13
100000001 AND ABOVE 1 0.00 1,471,426,595 29.33
42,234 100.00 5,016,477,767 100.00
NEM Insurance Plc

NEM INSURANCE PLC SHARE CAPITAL FROM INCEPTION TO 2023

Issued And Paid-Up Capital
Other Than Bonus
Nominal Value No Of Shares By Bonus Total
Amount Amount No Of Amount Cummulative
Year 1,600,0000 N’000 No Of Shares N’000 Shares N’000 Units
1989 1,600,000 NIL NIL NIL NIL NIL 1,600,000
1991 20,000,000 NIL NIL NIL 400,000 NIL 2,000,000
1992 20,000,000 NIL NIL NIL NIL 2,000,000
1993 20,000,000 NIL 18,000,000 NIL NIL NIL 20,000,000
1996 240,000,000 NIL NIL NIL 5,000,000 NIL 25,000,000
1997 240,000,000 NIL 68,507,246 NIL NIL NIL 93,507,246
1998 240,000,000 NIL NIL NIL 93,992,754 NIL 187,500,000
2003 1,000,000,000 NIL NIL NIL NIL NIL 187,500,000
2004 1,000,000,000 NIL NIL NIL 518,628,000 NIL 706,128,899
2005 5,000,000,000 NIL 299,916,131 NIL NIL NIL 406,212,768
2006 5,000,000,000 NIL NIL NIL NIL NIL 406,212,768
2007 7,000,000,000 NIL 4,570,709,998 NIL NIL NIL 4,976,922,766
2008 8,400,000,000 NIL NIL NIL NIL NIL 4,976,922,766
2009 8,400,000,000 NIL NIL NIL NIL NIL 4 ,976,922,766
2010 8,400,000,000 NIL 303,580,147 NIL NIL NIL 5,280,502,913
2017 8.400,000,000 NIL NIL NIL NIL NIL 5,280,502,913
2021 10,400,000,000 NIL NIL NIL 4,752,452,622 NIL 10,032,955,535
NEM Insurance Plc

SUBSTANTIAL SHAREHOLDING WITH 5% AND ABOVE

31ST DEC 2023 31ST DEC 2022
UNIT
NAME UNIT HOLDING %HOLDING %HOLDING
HOLDING
AFIG FUND 11 LP 1,499,926,851 29.90 1,499,926,851 29.90
CAPITAL EXPRESS ASSURANCE LIMITED 364,318,306 7.26 364,318,306 7.26
JEDOIC LIMITED 350,023,219 6.98 350,023,219 6.98
BUKSON INVESTMENT LIMITED 320,201,645 6.38 320,201,645 6.38
TOTAL HOLDING 2,534,470,022 50.52 2,505,969,765 49.95
DIRECTORS’ SHAREHOLDING – DIRECT AND INDIRECT
DIRECTORS’ INTEREST AS AT DECEMBER 31, 2023

DIRECTORS’ INTEREST DECEMBER 31, 2023

1 MR. TOPE SMART 120,411,652 - 120,411,652
2 MR ANDREW IKEKHUA 1,362,856 - 1,362,856
3 MR. IDOWU SEMOWO 15,270,847 - 15,270,847
4 ALHAJI AHMED I. YAKASAI - - -
5 MR PAPA NDIAYE - 1,499,926,852 1,499,926,852
6 MR KELECHI OKORO - - -
7 MRS JOY TELUWO 253,044 320,201,645 320,454,689
8 MRS ABISOLA GIWA-OSAGIE 13,986,656 - 13,986,656.00
9 CHIEF DAPHNE DAFINONE - 350,023,219 350,023,219
10 CHIEF (DR) ANTHONY ALETOR - 364,318,306 364,318,306
11 FIDELIS AYEBAE 23,155,158 - 23,155,158
174,440,213 2,534,470,022 2,708,910,235
31st December 31st December

NAME % %
2023 2022
Free Float in Units and Percentage 2,307,567,531 46.00 2,224,587,170 46.47%
DIRECTORS’ INTEREST AS AT DECEMBER 31, 2023
Free Float in Value 12,853,151,148 10,490,959,858.50
Declaration
(A) NEM Insurance Plc with a free float percentage of 46.00% as of 31st December 2023 is compliant with the
Exchange’s free float requirements for companies listed on the Main Board.
(B) NEM Insurance Plc with a free float value of N12,853,151,148 as of the 31st of December 2023 is compliant
with the Exchange’s free float requirements for companies listed on the Main Board.
Securities Trading Policy

In compliance with Rule 17.15 – Disclosure of Dealings in Issuers’ Shares Rulebook of the Exchange 2015 (Issuers
Rule), NEM Insurance Plc maintains a Security Trading Policy which guides Directors, Audit Committee members,
employees and all individual categorized as insiders with respect to their dealing in the Company’s shares. The
NEM Insurance Plc

Policy undergoes periodic review by the Board and is updated accordingly. The Company has made specific
inquiries of all its directors and other insiders and is not aware of any infringement of the policy during the period.
Rules Governing Free Float Requirements
In accordance with Rule 2.2 – Rules Governing Free Float Requirement, NEM Insurance Plc complies with the
Exchange’s Free Float requirement.
We hereby declare that apart from Bukson Investment Limited, Jedoic Limited, Capital Express Assurance Limited
and AFIG Funds having 5% and above, no other person or persons hold more than 5% and above in the issued
shares of the Company.
NAME HOLDING %HOLDING
AFIG FUND 11 LP 1,499,926,851 29.90

CAPITAL EXPRESS ASSURANCE LIMITED 364,318,306 7.26
JEDOIC LIMITED 350,023,219 6.98
BUKSON INVESTMENT LIMITED 320,201,645 6.38
•• Mrs. Joy Teluwo represents Bukson Investment Limited

•• Dr Daphne Dafinone represents Jedoic Limited
•• Chief (Dr) Anthony Aletor CON (mni) JP represents Capital Express Assurance Limited
•• Mr. Papa Ndiaye and Mr. Kelechi Okoro represent AFIG Funds
8. RETIREMENT BY ROTATION AND RE-ELECTION

In accordance with Section 285 of the Companies and Allied Matters Act 2020, Mr. Papa Ndiaye and Mr. Kelechi
Okoro will retire by rotation and being eligible offer themselves for re-election. Their profiles are contained in the
Annual Report and on the Company’s website.
9. COMPOSITION OF DIRECTORS
The Board of Directors of the Company is currently comprised of the underlisted individuals:
Dr. Fidelis Ayebae - Chairman (Retired 16/8/2023)
Mr. Tope Smart - Group Chairman (Effective 1st August 2023)
Mr. Andrew Ikekhua - Managing Director/CEO (Effective 3rd July 2023)
Mr. Idowu Semowo - Executive Director (Effective 16/8/2023)
Alhaji Ahmed I. Yakasai mni - Independent Non-Executive Director
Mrs. Olayinka Aletor mni - Non-Executive Director (Retired 16/8/2023)
Chief Ede Dafinone - Non-Executive Director (Resigned 16/8/2023)
Mr. Papa Ndiaye - Non-Executive Director
Mr. Kelechi Okoro - Non-Executive Director
Mrs. Joy Teluwo - Non-Executive Director
Mrs. Abisola Giwa-Osagie - Non-Executive Director (Effective 1/10/2023)
Dr Daphne Oterie Dafinone - Non-Executive Director (Effective 1/9/2023
Chief (Dr) Anthony Aletor CON mni (JP) - Non- Executive Director (Effective 1/9/2023)
10. RECORDS OF THE DIRECTORS’ ATTENDANCE

In accordance with Section 252 of the Companies and Allied Matters Act 2020, the records of the Directors
attendance at Director’s meeting in 2023 are available for inspection at the Annual General Meeting.
NEM Insurance Plc

11. SECURITY TRADING POLICY

In compliance with Rule 17.15 Disclosure of Dealings in Issuers’ Shares Rulebook of the Exchange 2015
(Issuers Rules), the Company has a Security Trading Policy that applies to all employees and Directors, and this
has been circulated to all employees that may at times possess any insider or material information about the
company. The policy includes the need to enforce confidentiality against external advisers.
12. COMPLAINTS MANAGEMENT POLICY

In compliance with the Securities and Exchange Commission’s Rule on Complaints Management for Public
companies, the company has in place an investor complaint desk at its head office to resolve complaints
arising from issues covered under the Investment and Securities Act (ISA) 2007.
13. DONATIONS
S/N Name N Amount
1. Elegba Festival Residential Community Development Association 1,000,000.00

2. Nigerian Council of Registered Insurance Brokers 2,500,000.00
3. Nigerian Insurers Association 1,500,000.00
4. Professional Insurance Ladies Association 1,350,000.00
5. Auchi Polytechnic 400,000.00
6. Ansarudeen Society of Nigeria, Iseyin 250,000.00
7. Affiliate of Trade Union Congress of Nigeria 200,000.00
8. Growing Grace Home 750,000.00
9. Alpes Charity Foundation 250,000.00
10. Ignite Career Initiative 2,000,000.00
11. Catholic Diocese of Issele Uku St Paul's Grammar School 300,000.00
12. Yaba College Of Technology 1,000,000.00
13. Securities and Exchange Commission 1,000,000.00
14. Redeemed Christian Church of God 250,000.00
15. Raco Child And Rural Care Initiatiative 800,000.00
16. Dessy-Roxy Kids-Home 1,000,000.00
17. Lift Above Poverty Organization 1,000,000.00
18. Chartered Insurance Institute of Nigeria 1,000,000.00
19. Lagos Chamber of Commerce and Industry 300,000.00
20. Nigerian Britain Association 2,856,541.67
21. African Insurance Women Association 2,321,970.00
22. Lagos Business School 250,000.00
23. Police Community Relation Committee, Ilupeju 300,000.00
24. The Still Waters Mental Health Foundation 500,000.00
25. Tiger Tennis Foundation 200,000.00
26. Armed Forces Remembrance 250,000.00
Total N23,528,511.67
NEM Insurance Plc

14. EVENTS AFTER REPORTING DATE

There were no significant events after reporting date which could have had a material effect on the consolidated
financial statements for the year ended 31st December 2023 which have not been adequately provided for or
disclosed in the financial statements.
15. EMPLOYMENT AND EMPLOYEES

It is the policy of the Group not to adopt criteria that may be discriminatory in considering applications for
employment, including those from physically challenged persons. All employees are given equal opportunities
to develop their abilities. When an employee becomes physically challenged during his/her employment, the
Group endeavors to retain the individual for employment despite the disability, where it is reasonably possible.
As of 31st December 2023, two physically challenged persons are in the employment of the company.
16. EMPLOYEES INVOLVEMENT, TRAINING AND DEVELOPMENT

i. Information Dissemination
The employees are regularly provided with information on matters that are of concern to them through
established channels of communication.
ii. Consultation with employees
There are regular consultations between the staff and management, particularly on matters affecting staff
welfare.
iii. Encouraging employee’s involvement and training
The employees are the company’s most valued assets; hence the company is committed to their continuous
training and development. In line with this, several training programs and courses aimed at broadening their
technical, managerial, and professional skills are scheduled and attended by members of staff.
iv. Health, Safety at work and welfare of employees
The company places premium on the health and general welfare of its employees. Adequate medical facilities
are provided for staff and their families at private hospitals retained in the respective localities. Transportation,
housing, and lunch subsidies are also provided to all levels of employees. Also, firefighting equipment are
installed in strategic positions in the office building.
17. AUDITORS
The previous auditors, Messrs. BDO Professional Services who audited the prior financial statements up
to 31 December 2022, resigned and KPMG Professional Services were appointed to fill the vacancy on
1 November, 2023.
Messrs. KPMG Professional Services, having satisfied the relevant corporate governance rules on their tenure
in office have indicated their willingness to continue in office as auditors to the Company. In accordance
with Section 401(2) of the Companies and Allied Matters Act (CAMA) 2020, therefore, the auditors will be
re-appointed at the next annual general meeting of the Company without any resolution being passed.
By Order Of The Board
IFUNANYA IWUAGWU
Company Secretary
Lagos Nigeria
FRC/2024/PRO/ICSAN/002/252928
Dated:This 29 April 2024
NEM Insurance Plc
Board of
Directors
NEM Insurance Plc
Board Of Directors
DR. FA IDELIS
AYIRE B E
MAN irman
CHA on of Cha
d from the positi ust 2023.
retire Aug
rd on 16th
of the boa
. T O P E SMART
MR ONS), ACII, MBA
- B.SUcP(HCHAIRMAN naging
GRO p Ma
le as Grou ties of
tione d from his ro on sibili
transi e re sp
assume th st 2023.
Director to man on 1st Augu
air
Group Ch
NEM Insurance Plc
Board Of Directors Cont’d
REW M . PGD
MR. ANUD
A - HN D, PGD (MGT),
IKEKHDMIN) MBA, MNIM RED),
(COMM. A ), FNIMN (CHARTE , ACIIN
ED E
CHARTER RTERED) FICA, FC
(CH A
FCICN
TO R
G DIREC arketing)
MANAGIN tive Director (M 2023.
xecu ly
e role of E on 3rd Ju
a s elevated from th ging Director/CEO
w na
tion of Ma
to the posi
A J I A H MED IN.
ALH SAI - mni, FPS
YAK A T DIRECTOR
PENDEN
INDE
JOY
MRS. W
TELUOR O
DIRECT
51
NEM Insurance Plc
ADIAW
PAPA M
NDIAOYRE
DIRECT
I
KELECOH
OKO R
CTOR
DIRE
DE
CHIEF OENE
DAF IN
CTOR
DIRE gust
on 16th Au te
ed fro m the board ed corpora
resign h
ign ing w ith establis
2023, al
principles.
governance
AYINKA
MRS. OPLE ALETOR
TITCIL O
DIRE TOR as a .
the Board ugust 2023
retired from e Director on 16th A
tiv
Non-Execu
NEM Insurance Plc
I D O W U OLAITASN FCIB, FCA

MR. c., MBA, AC ,
SEMOWO
- B.S
ance
R anager (Fin
al M
DIRECTO om the position of Generance & Investment)
in
waselevated fr Director (F
cutive
ent) to Exe
& Investm st 2023.
Au gu
on 16th
DR) ETOR
CHIEFO(N Y AL
ANTHOR
DIRECT f-
on the bo
ard e
m en ced his tenure 3.
com er 202
Septemb
fective 1st
DR. DAPD HNE

OTETROIE AFINONE
DIREC R
the board
her tenure on .
commenced 23
September 20
effective 1st
MRS. A BISOLA
AGIE
GIWAO-ROS
DIRECT t October,
2023.
ined the board on 1s
jo
NEM Insurance Plc
Board Of Directors’ Profile
MR. TOPE
SMART
Board Chairman
T
ope Smart, a graduate and an award In recognition of his outstanding achievements,
winner from the University of Lagos also Tope has won several awards among which
holds a master’s degree in Business are Distinguished Alumnus by the University of
Administration (MBA) from the University of Lagos, University of Lagos Alumni Association
Nigeria, Nsukka. He is an Associate member Golden Jubilee Special Recognition Award
of both the Chartered Insurance Institute of amongst others. Tope is the winner of year 2023
London and the Chartered Insurance Institute of (Almond Insurance Industry Award) Insurance
Nigeria. Tope, an astute professional, believes CEO of the Year. He is also a two-time winner
very strongly in the entrenchment of insurance of the Businessday Top 25 CEOs award and an
in the minds of all Africans. alumnus of Harvard Business School.
He is an unrepentant advocate of a better and

stronger Insurance Sector in Africa. He is a
Council member, Chartered Insurance Institute
of Nigeria, Council member, West African
Insurance Companies Association (Ghana),
Council member, Nigeria-Britain Association,
member of Senate, University of Lagos, and a
past Chairman of Nigeria Insurers Association.
Tope is a past President of the African Insurance
Organisation (AIO). During his presidency, AIO
witnessed phenomenal growth and increased
visibility as a result of several initiatives
introduced by him.
Tope is presently the Chairman, Alpha Morgan

Capital Limited, Chairman, NEM Health Limited,
Vice-Chairman, AIO Foundation, amongst
others. In 2014, he was appointed by the Federal
Government as Co-Chairman of the Insurance
Industry Transformation Committee. He was
also recently appointed Chairman, Planning
Committee of the University of Lagos Alumni
Association’s Golden Jubilee Anniversary.
NEM Insurance Plc
Board Of Directors’ Profile Cont’d
MR. ANDREW M.
IKEKHUA
Managing Director/Chief Executive Officer
A
ndrew Ikekhua holds a Master of Business was promoted to the position of Deputy General
Administration (MBA) in Administration Manager in 2013 and to General Manager
from the London School of Business and (Marketing) in 2014. Andrew subsequently
Finance as well as an MBA in Entrepreneurship became the Executive Director (Marketing) in
from ITTL- Doctoral Research Centre and 2017 and he is currently the Managing Director/
University of Phoenix, Arizona. Chief Executive Officer of the company.
He holds two Post Graduate Diplomas Andrew is a Council Member of the Nigeria
in Management (2000) and Commercial Insurers Association as well as an Alumni of the
Administration (2004) from University of Lagos Columbia University, New York USA.
and University of Calabar respectively and is
also an Associate of the Chartered Insurance He is married with children and has attended
Institute of Nigeria (ACIIN). several marketing and management courses
both locally and internationally.
Andrew is an Associate of the Chartered
Insurance Institute of Nigeria (ACIIN) and a
Fellow of the Institute of Chartered Economists
of Nigeria (FCE) (2009). He is also a full member,
Nigeria Chartered Institute of Management
(MNIM) 2014, a Fellow of the Institute of
Marketing of Nigeria 2020, Fellow of the Institute
of Commerce of Nigeria, and a Fellow of the
Institute of Credit Administration.
Prior to his appointment as the Company’s

Branch Manager, Ibadan and Ikeja from 2001
to 2006, he worked at various levels of the
accounts and audit department of both BAICO
(1981 -1990) and NEM Insurance Plc, (1990
-2000). He later became the Head of the Lagos
Mainland Branch upon recapitalization in 2007
and later an Assistant General Manager in 2009.
In recognition of his excellent track record, he
NEM Insurance Plc
ALHAJI YAKASAI
AHMED I. MNI, FPSN
Director
K
achallan Kano is an accomplished Ahmed worked variously in both the public and
Pharmacist and Independent Consultant with private sectors: Two terms Commissioner in Kano
comprehensive background in pharmaceutical State, First, he was Commissioner of Commerce,
fields and international marketing with bias in Search Industry, Cooperatives and Tourism (2005 – 2010)
and Social Media marketing and Public-Private and was redeployed to the ministry of Land and
Partnerships. He has a long-distinguished career Physical Planning from 2010-2011. Alhaji Yakasai
in various fields of Pharmacy, Healthcare Research, was also former Vice President, Kano State
Engineering and Construction, Telecoms and Chamber of Commerce.
Regulatory Affairs with over 41 years’ experience.
He is a Fellow of the Pharmaceutical Society of
He is the immediate Past President of the Nigeria, Fellow of Nigeria Academy of Pharmacy,
Pharmaceutical Society of Nigeria (PSN) from 2015 Fellow of the West African Postgraduate College
– 2018 and is also an Honorary Consul-General of of Pharmacists, Fellow of Nigerian Institute of
Pakistan in Nigeria and Founder/CEO, Pharmaplus Chartered Chemists, Fellow of Professional
Nigeria Limited, Multiplus Resource Limited and Excellence Foundation of Nigeria amongst others.
Blue Quest Engineering and Construction Company
Limited. Yakasai Ahmed is also on the board of several
companies.
He obtained his first degree in Pharmacy from
the prestigious Ahmadu Bello University, Zaria
in 1983 and so many post-graduate courses
including International Marketing (Search and Social
Media Marketing) 2014 – 2015 from University of
Salford, Manchester UK. Alhaji Yakasai attended
the prestigious National Institute for Policy and
Strategic Studies (NIPSS), Kuru , SEC 42, 2020 and
graduated with Member National Institute (mni) on
12th December 2020.
NEM Insurance Plc
MRS. JOY
TELUWO
Director
J
oy Teluwo is a leader, entrepreneur and a
registered nurse and midwife with over 25 years’
experience after graduating from the Edo State
School of Nursing. She currently sits as the Managing
Director/Chief Executive Officer of Jotel Trade Park
Limited.
In her journey in the corporate sector, with a career

spanning over 15 years, she specializes in risk
management, where she garnered more skills in
management which include team building, business
development, customer service relationship,
marketing management, amongst others. She joined
Vigilant Oil & Gas Limited as General Manager where
she set up the risk management unit in 2002.
Joy continues to successfully run three indigenous

companies including Tropical Farms Limited.
NEM Insurance Plc
MR. PAPA MADIAW

NDIAYE
Director
P
apa is a graduate of Harvard College with a
bachelor’s degree in Economics. He holds an
M.A. in International Affairs from the University
of Pennsylvania’s Lauder Institute, and an M.B.A.
from the Wharton School of Business.
He spent the early part of his career at Salomon

Brothers and joined JP Morgan’s Emerging Markets
Group in 1992. In 2000, Papa served as Special
Advisor for Economic and Financial Affairs to the
President of the Republic of Senegal and Chairman
of the Senegalese Presidential Economic and
Financial Advisory Council.
He is Founding Partner of AFIG Funds and currently

the Chief Executive Officer of the company.
Prior to his current position at AFIG, he has worked

as Investment Director at Emerging Markets
Partnership in Washington (EMP, now ECP) and
held senior responsibilities for IFC’s equity and debt
investment activities in capital markets and financial
institutions in Africa between 1996 and 2000.
Papa sits on the boards of several African

companies and non-profit organizations pertaining
to Africa.
NEM Insurance Plc
MR. KELECHI
OKORO
Director
K
elechi Okoro holds a Bachelor’s in Human
Physiology from the University of Ibadan, and
an M.B.A. from Lagos Business School.
He is a Director at AFIG Funds responsible for

sourcing, executing and managing investments for
the funds under management.
Prior to joining AFIG Funds in 2013, Kelechi was at

Argentil Capital Partners where he originated and
executed infrastructure transactions. He also a has
stint with the Infrastructure and Natural Resources
Group of the International Finance Corporation (IFC),
and at ARM Investment Managers both in Nigeria.
NEM Insurance Plc
MR. IDOWU
SEMOWO
Executive Director
I
dowu Semowo holds a Bachelor of Science
Degree in Fisheries Management in 1990
from the University of Ibadan and a Master
of Business Administration in Marketing
from the University of Lagos (1995). He is a
Fellow of the following institutes: The Institute
of Chartered Accountants of Nigeria [FCA],
Chartered Institute of Bankers of Nigeria
[FCIB] and Chartered Institute of Stockbrokers
of Nigeria [FCS].
He started his career with BBC Balogun

Badejo & Co [a firm of Chartered Accountants]
in 1993 and later worked with some banks:
UTB, Magnum and MBC International Bank
Limited between 1997 and 2005. He has over
thirty-one years of experience in the financial
industry [Auditing, Banking and Stock
Broking].
Idowu worked with Kinley Securities Limited

as AGM [Finance Services] up till December
2007 before joining NEM Insurance Plc in
2008. He has attended several courses on
Professional Management, Leadership, Credit
Analysis, Selling, Marketing and Costing of
Financial Services and Products.
Given his extensive expertise, he was

appointed as Executive Director (Finance &
Investment) in August 2023.
NEM Insurance Plc
DR. DAPHNE OTERIE

DAFINONE PhD, FCA
Director
D
aphne Oterie Dafinone is a distinguished Fellow
of both the Institute of Chartered Accountants
in England and Wales and the Institute of
Chartered Accountants of Nigeria. Few of her academic
accomplishments include the attainment of a master’s
degree in Internal Audit and Management Finance
from City University, London in 1996, followed by the
successful completion of a Ph.D. in Internal Audit and
Corporate Governance at City University of London in
2001.
She is the Chief Operating Officer of Crowe Dafinone

and has over thirty years of professional experience.
Daphne has been involved in numerous consulting
and audit assignments and her experience includes
corporate governance, due diligence, corporate
restructuring, merger and acquisitions, reverse-
takeovers, debt restructuring schemes, fund raising
exercises, valuation exercises, feasibility reviews, and
valuation of infrastructure projects.
NEM Insurance Plc
CHIEF (DR) ANTHONY

ALETOR CON, mni, JP
Director
C
hief (Dr) Anthony Aletor, CON, mni, (JP), Brokers; Member of the Association of Pensions
is an astute businessman with interests in Fund Managers of Nigeria; Member of the Institute
insurance, investment banking, commodity of Directors (IOD); Associate Member, Nigerian
trading, mining, shipping, and logistics. He is the Institute of Management (AMNIM); Associate,
Chairman of Capital Express Holdings Limited and Chartered Insurance Institute of London (ACII);
sits on the boards of various notable companies. Associate, Chartered Insurance Institute of
Nigeria (ACIIN); Associate, Corporation of
He is a distinguished strategist, manager, and Insurance Brokers (ACIB); Fellow of the Chartered
administrator with sterling leadership qualities that Institute of Stockbrokers (CIS); and Honorary
have been recognized by groups, organisations Fellowship, Chartered Institute of Loan & Risk
and governments, with numerous awards and Management of Nigeria (HCILRM).
laurels. He holds the chieftaincy title of The Aare
Bashorun Parakoyi of Ibadanland, Aradakan of
Owo Kingdom, The Ehinoma of Igueben Kingdom,
and Ci-Garin Hausa.
He has a degree in Insurance from the University

of Lagos, an MBA from the University of Ibadan,
an Honorary Doctorate Degree in Leadership
and Community Development from the Ecole
Superieur d’Administration et d’Economie (ESAE-
University), Cotonou, Benin Republic, and is
also a Doctoral Fellow (Dr. ICRMP), International
Certified Risk Management Professionals, United
Kingdom.
Chief Aletor, has attended several local and

international courses and he is a member of several
reputable professional and non-professional
associations, such as: National Institute for Policy
and Strategic Studies, Kuru, Jos (mni); Member,
The Nigerian Council of Registered Insurance
NEM Insurance Plc
MRS. ABISOLA GIWA

OSAGIE
Director
M
rs. Abisola Giwa-Osagie, a distinguished further honing her strategic acumen and leadership
Director, is a luminary in the field of law prowess.
and business development. A graduate of
the esteemed University of Warwick in Coventry, Following the successful recapitalization exercise
England, she holds a profound understanding of in 2007, Mrs. Giwa-Osagie’s leadership was
legal intricacies, further enriched by a master’s reaffirmed through her reappointment as Executive
degree in international law (L.L.M.). Mrs. Giwa- Director (Business Development). Her tenure
Osagie commenced her illustrious career at the culminated in her appointment as Deputy Managing
prestigious Law Firm of Femi Okunnu & Co (SAN) in Director, a testament to her exemplary leadership
Lagos, where her acumen and dedication garnered and profound impact. Today, Mrs. Abisola Giwa-
early recognition. Osagie’s illustrious career continues to flourish as
she imparts her invaluable insights and expertise
Her journey led her to the National Insurance across various boards.
Corporation of Nigeria (NICON), where she navigated
various roles with finesse and deep understanding. She has attained the status of a trailblazer in
Recognized for her astute leadership and strategic the realms of law, business development, and
vision, she assumed the mantle of Head of Legal corporate governance.
Services/Admin at Olympia Insurance Company,
leaving an indelible mark on the organization before
her departure in 1996.
In 1997, Mrs. Giwa-Osagie embarked on a new

chapter, joining African International Bank (A.I.B.) with
a pivotal role in the Legal Department, overseeing the
institution’s assets and insurance matters across the
nation. Her tenure witnessed transformative strides,
emblematic of her commitment to excellence and her
ability to navigate complex regulatory landscapes.
In 2004, she embarked on a transformative journey

with NEM Insurance, where she assumed the role
of Executive Director (Business Development),
spearheading the company’s foray into the
dynamic realm of energy insurance. Her tenure was
characterized by strategic foresight and unwavering
dedication.
Mrs. Giwa-Osagie’s quest for knowledge and

excellence led her to prestigious leadership programs
at Harvard Business School, Columbia, Wharton,
and other renowned global business schools,
NEM Insurance Plc
Management
Team Profile
NEM Insurance Plc
Management Team Profile
M
r. Andrew Ikekhua holds a Master of Business In recognition of his excellent track record, he was
Administration (MBA) in Administration from promoted to the position of Deputy General Manager
the London School of Business and Finance. in 2013 and in 2014 to the position of General Manager
In addition, he has a Master of Business Administration (Marketing). In 2017, he was elevated to the position of
(MBA) in Entrepreneurship from ITTL-Doctoral Executive Director (Marketing and Business Development).
Research Center and University of Phoenix, Arizona.
Mr Ikekhua has demonstrated a high level of commitment
He is an Associate of the Chartered Insurance Institute of and dedication to the insurance sector and this has
Nigeria (ACIIN) and a Fellow of the Institute of Chartered earned him the enviable position of Managing Director/
Economists of Nigeria (FCE 2009). A full member, Nigeria CEO, a position he occupies till date.
Institute of Management (MNIM 2014); a Fellow of the
Institute of Marketing of Nigeria (Chartered 2020); a Fellow He is married with children and has attended several
of the Institute of Commerce of Nigeria (Chartered 2020) marketing and management courses both locally and
and a Fellow of the Institute of Credit Administration (2020) internationally.
Prior to his appointment as the company’s branch

manager, Ibadan and Ikeja from 2001 to 2006, he worked
at various levels of the accounts and audit department
of both BAICO (1981 -1990) and NEM Insurance Plc,
(1990 -2000). Subsequently, he became the Head of the
Lagos Mainland Branch upon recapitalization in 2007
and an Assistant General Manager in 2009.
Mr. Andrew M.
Ikekhua
– MNIM (CHARTERED), FNIMN
(CHARTERED), FCICN (CHARTERED)
FICA, FCE, ACIIN
Managing Director/Chief
Executive Officer
NEM Insurance Plc
Management Team Profile Cont’d
I
dowu Semowo holds a Bachelor of Science Degree
in Fisheries Management in 1990 from the University
of Ibadan and a Master of Business Administration in
Marketing from the University of Lagos (1995). He is
a fellow both The Institute of Chartered Accountants
of Nigeria [FCA] and Chartered Institute of Bankers of
Nigeria [FCIB] respectively. He is also a Fellow of the
Chartered Institute of Stockbrokers of Nigeria [ACS].
He has over twenty-seven of experience in the financial

industry [Auditing, Banking and Stock Broking]. He started
his career with BBC Balogun Badejo & Co [a firm of
Chartered Accountants] in 1993 and later worked with
various banks: UTB, Magnum and MBC International
Bank Limited between 1997 and 2005.
He worked with Kinley Securities Limited as AGM

[Finance Service] up till December 2007 before joining
NEM Insurance Plc in 2008. He has attended several
courses on Professional Management, Credit Analysis,
Selling, Marketing and Costing of Financial Services
and Products.
Given his extensive expertise, He became an Executive

Director (Finance & Investment) in 2023.
Mr. Idowu
Semowo
- B.SC., MBA, ACIB,
FCS, FCA
Executive Director,
Finance & Investment
NEM Insurance Plc
A
deyemi Mabayoje Mayadenu holds a Higher Mr. Mayadenu is a versatile Insurance practitioner with
National Diploma Certificate in Insurance from vast experience in technical and marketing skills. In
The Polytechnic Ibadan (1993). He became an recognition of his marketing expertise, he was elevated
Associate member of the Chartered Insurance Institute to the position of Assistant General Manager in 2011
of Nigeria (ACIIN) in 2001. and continued as Head of the Port Harcourt branch of
the company.
His insurance career started from Nigeria Life & Pensions,
Lagos where he served as a clerk in 1990. He served as He has attended several courses (home and abroad) in
a Youth Corp Member at the Regional office of NICON Insurance, Marketing and Management and is presently
Insurance Company, Benin City (1994-1995). He then the Deputy General Manager (Strategy & Systems). He
proceeded to Hogg Robinson (Nig.) Limited, Warri as is happily married with children.
a senior staff (1995-1998). Thereafter, he worked in
various capacities with reputable insurance companies
including IGI Company Limited and Goldlink Insurance
Company. He joined Vigilant Insurance Company Limited
as Assistant Controller (2003-2007) and rose to become a
Group Executive and headed the Port Harcourt branch of
NEM Insurance Plc upon the merger and recapitalization.
Mr. Adeyemi
Mabayoje
Mayadenu
-HND, ACIIN
Executive Director (Technical)
NEM Insurance Plc
M
ojisola Teluwo is a graduate of Yaba College
of Technology where she obtained the Higher
National Diploma [HND] certificate in Business
administration, 1993.
She is a full member of the Nigeria Institute of Management

[MNIM] 2003 and Fellow Institute of Chartered Economist
of Nigeria [FCE] 2011. She is also an Associate of the
Chartered Institute of Personnel Management of Nigeria
[ACIPM] 2012.
She is a seasoned veteran of over two decades in the

insurance industry and her career started with Vigilant
Insurance Company in 1994 where she rose to the position
of AGM/Head Corporate Affairs. She continued to head
the Corporate Affairs department of NEM Insurance Plc
after the recapitalization exercise in 2007. Mrs. Teluwo is
presently a General Manager and heads the Corporate
Services Department.
She has attended several courses on management,

Human Resources, and Industrial Relations.
Mrs. Mojisola
Teluwo
– HND; ACIPM MNIM, FCE
General Manager,
Corporate Services
NEM Insurance Plc
G
eorge Augustine Emefiele holds a bachelor’s In January 2009, he joined NEM Insurance Plc as a
degree in Sociology in 1986 from the University Group Executive and is currently the Deputy General
of Ibadan. He proceeded to the University Manager, Marketing and Business Development.
of Lagos where he obtained an M.Sc. in Industrial
Relations and Personnel Management and MBA from He has attended many courses in Management and
Federal University of Technology Akure, Ondo State. Marketing Strategy locally and internationally.
He is also an Associate of the Chartered Institute of He is also happily married with children.
Personnel Management of Nigeria [ACIPM].
He has over 20 years working experience as an academic
and as a seasoned insurance marketer.
He started his working career with Yaba College of

Technology as a lecturer in 1995 and later worked with
Piccadilly Insurance Company Limited, 1999, Vigilant
Insurance company Limited (2004). In 2004, he moved
to the United States of America where he worked in
various organizations amongst which are Farmers
Insurance incorporated, Home Depot Inc., USA, and
Citi Group Inc. Dallas, USA.
Mr. George
Augustine
Emefiele
– B.Sc, M.Sc, MBA, ACIPM
Deputy General Manager,
Marketing (Business
Development)
NEM Insurance Plc
K
ayode Arimoro is a graduate of Obafemi He is an associate member of the Chartered Insurance
Awolowo University and Ambrose Alli University Institute of Nigeria (ACIIN) and the National Institute
where he bagged Bachelor of Arts and master’s of Marketing of Nigeria and has also attended several
in business administration respectively. He started his courses locally and international which cuts across
insurance career with Leadway Assurance Limited in management, strategy, financial management and
1995 where he grew through the ranks to become business development.
the Assistant Branch Manager of the Warri branch.
In 2001, he joined Vigilant Insurance Co. Limited as
Mr. Arimoro is presently the Deputy General Manager
Branch Manager (Warri).
in charge of Branch Operations and Special Accounts.
He is happily married with children.
His business acumen and dedication to work has
contributed immensely to the company performance
and brand recognition in Warri and its environs where
he managed the company’s growing clients’ base for
over a decade.
Mr. Kayode
Busuyi
Arimoro
-BA, MBA, ACIIN
Deputy General Manager,
Branch Operations and
Special Accounts
NEM Insurance Plc
M
rs. Moyosola Olayinka Okeremi is a graduate Marketing and has grown through the ranks and is
of Insurance from the Enugu State University currently the Assistant General Manager, Marketing.
of Science and Technology, Enugu (1996). She
obtained a master’s in business administration (MBA) Mrs Okeremi is a good manager with excellent business
from the Ladoke Akintola University, Ogbomoso in acumen and has attended various courses both locally
year 2005. She is a member of various professional and internationally in insurance, management, business
associations which includes the Nigeria Institute of processes and marketing.
Marketing NIM and Nigeria Institute of Management
(Chartered) MNIM.
She began her working career at Airclaims Consult

Limited in 1997 as a Youth Corps Member. Due to her
commitment and dedication to work, she was employed
after her service year as a clients relations officer by the
company. In 1999, Mrs. Okeremi joined Piccadilly Insurance
Company Limited where she started her insurance career
and was with the company till March 2002.
In 2002, she joined NEM Insurance Plc as Senior Manager,
Mrs. Moyosola
Olayinka
Okeremi
– BSC, MBA, MNIM
(CHARTERED)
Assistant General
Manager, Marketing
NEM Insurance Plc
E
mmanuel Ajayi is a seasoned finance executive Following the recapitalization exercise in the insurance
with over two decades of experience in the industry in 2007, Vigilant Insurance Company Limited
insurance industry that cuts across development merged with NEM Insurance Plc and Mr. Ajayi was among
of financial strategies, preparation of company’s the staff retained by NEM Insurance Plc after the merger.
statement of accounts, investment, and credit He was elevated to Group Head in 2018, the position
management. Mr. Ajayi started his career in 1993 he held until his recent promotion to Assistant General
with Nigeria – French Insurance Company Limited
Manager (Finance & Investment).
as Management Trainee and rose to the position of
Manager (Finance & Admin) in 2002. In 2003, he joined
Vigilant Insurance Company Limited as Finance and
Investment Manager.
Mr. Ajayi graduated from University of Nigeria, Nsukka in

1992 where he studied Economics. He got his Master of
Business Administration from University of Technology
Akure in 2002. He is a fellow of the Institute of Chartered
Accountant of Nigeria (FCA). He has attended several
professional courses both locally and abroad.
Mr. Emmanuel
Ojo Ajayi
-BSC, FCA
Assistant General Manager,
Finance & Investment
NEM Insurance Plc
O
norienbohwo attended the Federal Polytechnic,
Ado-Ekiti (1989) and Yaba College of Technology,
Yaba-Lagos (1998) where he obtained National
Diploma and Higher National Diploma respectively in
accounting.
In addition to having a professional certification in

accountancy, he has also obtained a master’s degree
in business administration (MBA).
Onos, as popularly called, started his career with Guinea

Insurance Plc in the early 90s and in 2004, he moved
briefly to the then Hallmark Assurance Plc as Finance
Manager. In December 2005, NEM Insurance Plc employed
him as Senior Manager in the Finance Department. He
is currently an Assistant General Manager and oversees
the Internal Audit Department at NEM Insurance Plc.
Mr. Onorienbohwo is a Fellow of Institute of Chartered

Accountants and has attended several courses locally
and internationally on Finance, Internal Auditing and Risk-
Based Internal Audit. He is happily married with children.
Mr. James Obevu

Onorienbohwo
– HND, MBA, FCA
Assistant General Manager
(Internal Audit)
NEM Insurance Plc
M
ichael Alaba Giwa holds a bachelor’s degree His vast experience and aggressive marketing saw NEM
in political science from the renowned Insurance Plc Abuja under him witnessing transformation
Ahmadu Bello University, Zaria in 1989 and and has grown from one (1) branch to three (3) branches,
is an Associate Member of the Nigeria Institute of all operating at maximum capacity.
Management (MNIM).
Mr. Giwa has attended several courses in Modern
He started his insurance career at Leadway Assurance Marketing Strategies, Strategic Sales & Marketing,
Company Limited from 1993 to 1997 where he worked Business Development and Management both locally
in various departments and capacities. Thereafter, he and internationally.
worked as a Marketer and Branch Manager in various
reputable insurance companies including; Acen Insurance He is currently the Assistant General Manager (Garki-
Co. Limited, Kaduna (1998-1999), Pioneer Branch Abuja) and is happily married with children.
Manager of STACO Insurance Plc, Kaduna and STACO
Insurance Plc, Abuja (1999-2005), and Vigilant Insurance
Company Limited Abuja (2005-2007). Upon the merger
of NEM Insurance Plc and Vigilant Insurance Company
Limited, he has worked with NEM Insurance Plc from
2007 till date.
Mr. Michael
Alaba Giwa
-BSC, MNIM
(Garki- Abuja Branch)
NEM Insurance Plc
B
unmi Agbabiaka is a graduate of the prestigious
University of Lagos, Akoka Yaba, Lagos where he
studied Insurance. He also holds an MSc in Risk
Management and Insurance from the same institution.
He started his insurance career with Vigilant Insurance Company

Limited and thereafter proceeded to African Reinsurance
Corporation for his National Youth Service where he served
in the General Underwriting/Reinsurance Department. Bunmi
was retained and posted to the Oil & Gas/Aviation Insurance
and Reinsurance Department between 2004 and 2007.
In December 2007, he joined NEM Insurance Plc as an

Assistant Manager and pioneer staff starting off the Oil & Gas/
Aviation Insurance unit under the Marketing department. Bunmi
is currently a Group Head, and currently heads the Oil and
Gas, Energy/Special Risks department at NEM Insurance Plc.
He is a member of both the Chartered Insurance Institute,

(CII) London and The Chartered Insurance Institute of Nigeria
(CIIN). He is also an Associate of The Chartered Insurance
Institute of Nigeria (ACIIN). He has attended various training/
courses and conferences in Oil & Gas Insurance, Underwriting/
Claims and Aviation Insurance.
Mr. Bunmi
Agbabiaka
– BSC, MSC, ACIIN
(Oil And Gas)
NEM Insurance Plc
B
olanle Baruwa obtained her HND, Insurance in In 2019 she was appointed as the Head of Underwriting
2003 at Lagos State Polytechnic (now Lagos and in 2021 promoted to Group Head of the department
State University of Science & Technology, Lagos) where she supervises activities of the company’s
and her Master of Business Administration (MBA) in underwriting, risk survey & management. Before her
2012 at Ladoke Akintola University of Technology, appointment as the Head of the Underwriting department,
Ogbomoso. Bolanle started her insurance career Bolanle previously served as head of general accident,
with Vigilant Insurance Company Limited in 2005 and
engineering, and bonds. She is currently the Assistant
later joined NEM Insurance Plc after the merger with
General Manager, Underwriting.
Vigilant Insurance Limited sequel to the 2007 industry
recapitalization.
She has attended several courses and conferences,
She is an adept insurance professional with nineteen both locally and internationally in underwriting, Risk
years of underwriting working experience across various Management, Leadership, Strategy, and Technology.
non-life policies. She is hardworking and passionate She is happily married with children.
about getting results in every assigned duty. Bolanle has
been instrumental in the development of the company’s
underwriting strategy and policy, process re-engineering,
product development and risk management. In 2017, the
company awarded her the best manager in recognition
of her commitment.
Mrs. Bolanle
Baruwa
-HND, MBA, ACIIN
Underwriting
NEM Insurance Plc
M
artins Ilegoma is a public administration market penetration in Nigerian northern insurance market.
graduate from the University of Jos (1997). He Mr. Ilegoma is a versatile marketer, a team player, and
holds a Post Graduate Diploma (PGDM) from in recognition of this, he was recently promoted to the
the University of Calabar, 1999 and a master’s degree position of Assistant General Manager (Marketing). He
in business administration in Marketing from Ambrose is currently the AGM /Branch Manager (Wuse- Abuja).
Alli University, Edo State, 2002; He has over twenty
years’ experience in the insurance industry and is a He is a Fellow, Institute of Corporate Administration,
seasoned underwriter and marketer. Martins started 2023; Doctorate Fellow, Institute of Corporate & Public
his insurance career with the America International Administration of Nigeria (2019); Fellow, Portfolio
Insurance Company (AIICO), Lagos. While there, he Management Institute (Chartered), 2015; Fellow, Chartered
served the company in various capacities and rose Institute of Loan & Risk Management of Nigeria, 2013;
to the position of Marketing Supervisor before leaving
Full Member, National Institute of Marketing of Nigeria
for Abuja, where he joined the service of Royal Trust
(Chartered),2005; Member, Nigeria Institute of Management
Insurance Company Limited in 2005. He rose to the
(Chartered), 2005; and Member, Chartered Insurance
position of the head of Marketing Department of Abuja
Institute, Nigeria.
Branch of the company.
He has attended top professional courses in insurance,

After the recapitalization and merger exercise in the
marketing and management both locally and internationally.
insurance industry in 2007, Martins left Royal Trust
Insurance Company and joined Crusader Insurance
Company Plc to broaden his experience. He later
became the Marketing Manager in charge of the Abuja/
Jos offices before joining Nem Insurance Plc in 2008 as
Deputy Branch Manager.
Martins has demonstrated a very high commitment to

insurance marketing and his efforts have contributed
immensely to the NEM brand’s acceptability and growing
Mr. Martins
Ilegoma
– BSC, PGD, MBA, FCAI, FCILRMN, FPMI
Wuse- Abuja
NEM Insurance Plc
O
layinka Ojikutu hold a bachelor’s degree in Prior to joining NEM Insurance Plc in April 2021, she was
political science from University of Lagos, the HR Manager at Southern Sun Ikoyi Hotel where she
Nigeria, and a master’s degree in human played a pivotal role in the success of the company’s
resources management from London Metropolitan business continuity plan during the COVID-19 pandemic
University, London, United Kingdom. She is also outbreak that affected hospitality industry’s operations.
an Associate Member of the Chartered Institute of She has garnered over 15 years’ HR management
Personnel Management (ACIPM), as well as a Senior
experience drawn from various organizations in major
Professional in Human Resources International
economic sectors in Nigeria & UK and is currently the
(SPHRi) from HR Certification Institute (HRCI), and a
PPA Certified Practitioner from Thomas International. Group Head, Human Resources at NEM Insurance Plc
where she is responsible for providing people management
She started her career with the now defunct West Anglia solutions and practices that are people driven and able
Great Northern Railway line (WAGN) in 2002 and over to deliver on organizational strategic direction, corporate
the years, she progressively held positions at London values and philosophies.
Borough of Hackney, Makers UK. In 2012, she joined
InterContinental Hotel, Lagos (IHG) as a pioneer staff and
was a key member of the preopening team responsible
for recruitment, strategic workforce planning, policy
and process development, onboarding, and employee
engagement.
Ms. Olayinka
Ojikutu
-ACIPM, SPHRi, MA. HRM
Group Head, Human
NEM Insurance Plc
A
gboola is a graduate of Insurance from the Lagos
State University, Ojo, Lagos. He has Master of
Business Administration (MBA in Finance) from
Obafemi Awolowo University, Ile Ife. Agboola has over
ten (10) years of working experience in underwriting
and claims management in insurance industry.
He is a member of Institute of Chartered Accountant

of Nigeria and Chartered Insurance Institute of Nigeria.
Agboola is currently the Group Head, Claims and
Reinsurance Department.
He has attended various courses, seminars and conferences

on general insurance underwriting, claims management
and reinsurance both locally and internationally.
Mr. Abiola
Agboola
– BSC, ACIIN, MBA
Group Head,
Claims and Reinsurance
NEM Insurance Plc
I
funanya Iwuagwu is a highly skilled legal practitioner, She has also attended several training courses on dispute
having graduated from the Ambrose Alli University, resolutions and mediation, corporate governance, and
Ekpoma in 2002 with over fifteen years of relevant is a member of the Institute of Credit Administrators,
experience. She started her professional career as a a Chartered Secretary & Administrator, and a certified
legal officer with Messrs Taiwo Kupolati & Co where Data Analyst. She is currently the Company Secretary/
she garnered vast experience in litigation and also as Legal Adviser of the company.
an assistant editor with the Federation Weekly Law
Reports. Thereafter, she joined the Firm of Messrs.
Koya & Kuti Solicitors in 2009 and there she acquired
experience in legal drafting, negotiation in cross border
transactions as well as corporate and commercial law
practice.
In 2014, Ifunanya was employed as a Legal Executive in

Red Star Express Plc and served in several capacities, one
of which was as Secretary to the Board of Trustees of the
Red Star Foundation Ltd/Gte. Whilst in Red Star Express
Plc, she reviewed and negotiated key agreements and
provided strategic legal advice to executive leadership
and most recently was a member of the Group Executive
Committee and served as Head, Legal/Legal Adviser to
the Company.
Mrs. Ifunanya
Iwuagwu
-LLB, BL, ACIS
Company Secretary/Legal
Adviser
NEM Insurance Plc
Financial
Statements
& Notes to
the Accounts
Report Of External Consultants On Board Appraisal 84
Statement of Directors’ Responsibilities 85
Statement of Corporate Responsibility 86
Certification Pursuant 87
Management’s Report On The Effectiveness Of Internal Control Over Financial Reporting 88
Environmental, Social and Governance (ESG) Report 89
Report Of The Audit and Compliance Committee 90
Independent Auditor’s Report 91
Statement Of Material Accounting Policies 97
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 1 January 2022 (Group) 129
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 1 January 2022 (Parent) 130
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 31 December 2022 (Group) 131
IFRS 17 Transition Adjustment For Statement Of Financial Position As At 31 December 2022 (Parent) 132
IFRS 17 Transition Adjustment For Statement Of Profit Or Loss And Other Comprehensive Income (Group) 133
IFRS 17 Transition Adjustment For Statement Of Profit Or Loss And Other Comprehensive Income (Parent) 134
Notes To The Transition Adjustment 135
Consolidated and Separate Statements of Financial Position 144
Consolidated and Separate Statements of Profit Or Loss and Other Comprehensive Income 145
Consolidated Statement of Changes in Equity (Group) 146
Consolidated Statement of Changes in Equity (Parent) 147
Statement Of Cash Flows 148
Notes To The Financial Statements 149
NEM Insurance Plc
Report Of External Consultants On

Board Appraisal
NEM INSURANCE PLC

In line with the provisions of Principle 14.1 of the National Code of Corporate Governance, Section 15.1 of the Securities and
Exchange Commission (SEC) Code of Corporate Governance, SIAO was engaged by NEM Insurance Plc. to carry out an
evaluation of the performance of the Board of directors, and an assessment of the Company’s corporate governance structure
for the year ended 31st December 2023. A summary of our findings are as follows:
The Board is composed of a mix of executives and non-executives which indicates that the non-executives are in greater
proportion than the executives. The proportion of executives to non-executives is 1:4. Members are individuals of diverse
professional backgrounds and business experience. Among the non-executives are: An astute insurer, a risk management
expert, a foremost industrialist and economics expert, an experienced auditor, a lawyer and management expert, as well as an
investment specialist. The Executive Directors are qualified professionals with cognate experience in their areas of specialization
and vast knowledge of Insurance business and its operating terrain. Members possess the requisite qualification and experience
required for their positions and have been bringing their experience to bear in directing the affairs of the Company which has
since been reflected in the performance of the company over the years.
In accordance with the NAICOM Code, the Board Chairman is a Non-Executive Director; there is a clear delineation of
responsibilities between the position of the MD and the Chairman while no one individual occupies the two positions at the
same time avoiding the issue of executive duality. The two individuals are not members of the same family.
The Operations/Processes of the Board were managed within the context of regulatory requirements and in accordance with
Best Practices. Accordingly, the Board held five meetings during the year under review and attendance was outstanding
whereby each member met the 75% minimum requirement prescribed in The Code in respect of attendance. A Committee
structure comprising of the minimum requirement of the NAICOM Code was institutionalized and the committees were provided
with the required Terms of Reference. The agenda contained issues meant for the attention of the Board and the preparation of
the agenda was flexible in allowing all members to introduce relevant subject matters to the Board.
Adequate notice was given for meetings and Board materials were circulated promptly to members which allowed them
adequate time to prepare for the meetings. Members were given equal opportunity and they made cogent contributions to
deliberations and most decisions were arrived at by consensus. The Board enjoys a cordial working relationship and meetings
were conducted in an atmosphere devoid of rancor. The above review suggests that the composition and Processes/Operations
of the Board meet most of the parameters of the NAICOM Code.
Members performed their oversight responsibilities with respect to the activities of management in particular as regards the
Group’s growth strategy, its Financial Performance, Business Prospects as well as status of Regulatory Compliance.
Following the recommendation made to the Board, particularly the regularization of its size, we observed that the Board has
instituted the required mechanism to address the issue in order to enhance its governance practices.
Following the recommendation made to the Board, particularly the inclusion of individuals with expertise in other key business
areas, we observed that the Board has instituted the required mechanism to address the issue in order to enhance its governance
practices.
BY ORDER OF THE BOARD
ABIODUN ARIYIBI
SIAO PARTNERS
Lagos, Nigeria
NEM Insurance Plc
Statement of Directors’
Responsibilities in Relation to the
Consolidated and Seperate Financial
Statements for the year ended 31
December 2023
The directors accept responsibility for the preparation of the annual consolidated and seperate financial statements
that give a true and fair view in accordance with IFRS Accounting standards as issued by the International Accounting
Standards Board (IFRS Accounting Standards) and in the manner required by the Companies and Allied Matters
Act. (CAMA), 2020 the Financial Reporting Council of Nigeria (Amendment) Act, 2023, the Insurance Act 2003 and
relevant National Insurance Commission of Nigeria (“NAICOM”) Circulars.
The directors further accept responsibility for maintaining adequate accounting records as required by the Companies
and Allied Matters Act. (CAMA), 2020 and for such internal control as the directors determine is necessary to enable
the preparation of financial statements that are free from material misstatement whether due to fraud or error.
The directors have made assessment of the Group and Company’s ability to continue as a going concern and have
no reason to believe that the Group and Company will not remain a going concern in the year ahead.
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY:
Mr. Tope Smart (Group Chairman) Mr. Andrew Ikekhua (MD/CEO) Mr. Idowu Semowo (CFO)
FRC/2013/CIIN/00000001331 FRC/2018/CIIN/00000018245 FRC/2013/ICAN/00000001466
29 April 2024 29 April 2024 29 April 2024
NEM Insurance Plc
Statement of Corporate Responsibility

for the Consolidated and separate
Financial Statements for the Year
Ended 31 December 2023
Further to the provisions of section 405 of the Companies and Allied Matters Act (CAMA), 2020, we, the Managing
Director/CEO and Chief Financial Officer, hereby certify the consolidated and separate financial statements of NEM
Insurance Plc (“the Company”) and its subsidiaries (“together referred to as “the Group”) for the year ended 31
December 2023 as follows:
a) That we have reviewed the audited consolidated and separate financial statements of the Group for the year
ended 31 December 2023.
b) That the audited consolidated and separate financial statements do not contain any untrue statement of
material fact or omit to state a material fact which would make the statements misleading, in the light of the
circumstances under which such statement was made.
c) That the audited consolidated and separate financial statements and all other financial information included
in the statements fairly present, in all material respects, the financial condition and results of operation of the
Group and subsidiaries as of and for, the year ended 31 December 2023.
d) That we are responsible for establishing and maintaining internal controls and have designed such internal
controls to ensure that material information relating to the Group is made known to us by other officers of the
companies, during the year ended 31 December 2023.
e) That we have evaluated the effectiveness of the Group’s internal controls within 90 days prior to the date
of audited consolidated and separate financial statements, and certify that the Group’s internal controls are
effective as of that date.
f) That there were no significant changes in internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our evaluation, including any corrective action with regard to
significant deficiencies and material weaknesses.
g) That we have disclosed the following information to the Group’s Auditors and Audit Committee:
(i) there are no significant deficiencies in the design or operation of internal controls which could adversely
affect the Group’s ability to record, process, summarise and report financial data, and have identified for
the Group’s auditors any material weakness in internal controls, and
(ii) there is no fraud that involves management or other employees who have a significant role in the Group’s
internal control.
Mr. Andrew Ikekhua (MD/CEO) Mr. Idowu Semowo (CFO)

FRC/2018/CIIN/00000018245 FRC/2013/ICAN/00000001466
29 April 2024 29 April 2024
NEM Insurance Plc
Certification Pursuant to Section 60

of the Investment and Securities
Act, 2007
We, Andrew Ikekhua and Idowu Semowo, certify that:

a) We have reviewed the Report on the Effectiveness of Internal Control over Financial Reporting as of 31
December 2023 of NEM Insurance Plc (“the Company”);
b) Based on our knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;
c) Based on our knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations and cash flows of the entity as of,
and for, the periods presented in this report;
d) We:
1) are responsible for establishing and maintaining internal controls;
2) have designed such internal controls and procedures, or caused such internal controls and procedures
to be designed under our supervision, to ensure that material information relating to the Company, and
its consolidated subsidiaries, is made known to us by others within those entities, particularly during the
period in which this report is being prepared;
3) have designed such internal control system, or caused such internal control system to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with IFRS Accounting Standards;
4) have evaluated the effectiveness of the Company’s internal controls and procedures as of a date within 90
days prior to the report and presented in this report our conclusions about the effectiveness of the internal
controls and procedures, as of the end of the period covered by this report based on such evaluation.
e) We have disclosed, based on our most recent evaluation of internal control system to the Company’s auditors
and the audit committee
1) That there are no significant deficiencies or material weaknesses in the design or operation of the internal
control system which are reasonably likely to adversely affect the Company’s ability to record, process,
summarize and report financial information; and
2) That there is no fraud, whether or not material, that involves management or other employees who have a
significant role in the Company’s internal control system.
f) We have identified, in the report whether or not there were significant changes in internal controls or other facts
that could significantly affect internal controls subsequent to the date of our evaluation including any corrective
actions with regard to significant deficiencies and material weaknesses.

Name: Mr. Andrew Ikekhua Name: Mr. Idowu Semowo

Designation: CEO Designation: Chief Financial Officer
FRC No: FRC/2018/CIIN/000000018245 FRC No: FRC/2013/ICAN/00000001466
29 April 2024 29 April 2024
NEM Insurance Plc
Management’s Report On The

Effectiveness Of Internal Control Over
Financial Reporting
The management of NEM Insurance Company Plc (“the Company”) is responsible for establishing and maintaining
adequate internal control over financial reporting as required by the Securities and Exchange Act, 2007 and the
Financial Reporting Council (Amendment) Act, 2023.
The management of NEM Insurance Plc assessed the effectiveness of our internal control over financial reporting
of the Company and its subsidiaries (together ”the Group”) as of 31 December 2023 using the criteria set forth
in Internal Control—2013 Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (“the COSO Framework”) and in accordance with the SEC Guidance on Implementation of
Sections 60 – 63 of Investments and Securities Act, 2007.
As of December 31, 2023, the management of NEM Insurance Plc did not identify any material weakness.
As a result, management has concluded that, as of December 31, 2023, the Group’s internal control over financial
reporting was effective.
The Company’s independent auditor, KPMG Professional Services, who audited the consolidated and separate
financial statements included in this Annual Report, issued an unmodified conclusion on the effectiveness of
the Group’s internal control over financial reporting as of 31 December 2023 based on the limited assurance
engagement performed by them.
Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred subsequent to the date of our
evaluation of the effectiveness of internal control over financial reporting that significantly affected, or are reasonably
likely to significantly affect, the Group’s internal control over financial reporting.
Mr. Andrew Ikekhua (MD/CEO) Mr. Idowu Semowo (CFO)

MD/CEO CFO
FRC/2018/CIIN/00000018245 FRC/2013/ICAN/00000001466
NEM Insurance Plc
Environmental, Social and

Governance (ESG) Report
NEM Insurance Plc demonstrates a steadfast commitment to the principles of Environmental, Social, and
Governance (ESG) initiative. This initiative is anchored on the fundamental pillars of environmental protection, social
responsibility, and institutional advancement. Guided by the oversight of the company’s board, a robust long-term
strategy has been meticulously developed to address all pertinent ESG considerations.
The company has broadened its social impact by actively engaging in endeavours aimed at bolstering client
protection principles and support. These efforts encompass transparency initiatives, the development of beneficial
products tailored to safeguard diverse client interests, stringent measures to protect client data privacy, and the
establishment of an effective feedback mechanism to address clients’ concerns, thereby enhancing service delivery.
NEM is dedicated to preserving and safeguarding the environment through conscientious management of water
and electricity resources. Rigorous maintenance practices for generators and vehicles are upheld to minimize fuel
consumption. Additionally, the company has implemented safety measures such as the installation of first aid kits
and fire safety equipment across all branches and at the head office.
NEM ensures that staff members receive regular training on fire safety and emergency first aid protocols. There
are also closed – circuit television cameras in strategic places in the workplace to always ensure the safety of staff
members and monitor movement within our facility at every given time.
Initiatives aimed at reducing energy consumption, including the installation of inverters and energy-efficient bulbs,
are also actively carried out. Industrial printers have been introduced to curtail paper usage, contributing to
sustainability efforts. Efforts are also being taken to ensure that staff members are acquainted of their health status
through comprehensive training sessions on health awareness and informative lectures facilitated by the company’s
subsidiary, NEM Health Limited.
NEM Insurance Plc
Report Of The Audit and

Compliance Committee
To the members of NEM Insurance Plc
In accordance with the provisions of Section 404 of the Companies and Allied Matters Act, 2020, we the Members
of the Audit and Compliance Committee of NEM Insurance Plc, having carried out our statutory functions under the
Act, hereby report as follows:
•• e have reviewed the scope and planning of the audit for the year ended 31 December 2023 and we confirm
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that they were adequate;
•• he Company’s and its Subsidiaries reporting and accounting policies as well as internal control systems con-
T
form to legal requirements and agreed ethical practices; and
•• e are satisfied with the departmental responses to the External Auditors’ findings on management matters
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for the year ended 31 December 2023
Finally, we acknowledge and appreciate the co-operation of Management and Staff in the conduct of these duties.
Chairman of the Audit and Compliance Committee

FRC/2024/PRO/AUDITCOM/002/632839
Date: 29 April 2024
Members of the Audit Committee

Mr. Taiwo Oderinde (Shareholders’ Representative) Chairman
Mr. Samuel Mpamaugo (Shareholders’ Representative) Member
Mr. Christopher Ogba (Shareholders’ Representative) Member
Mr. Kelechi Okoro (Non Executive Director) Member
Mrs. Joy Teluwo (Non Executive Director) Member
Mrs Abisola Giwa Osagie (Non Executive Director) Member

The Company Secretary/Legal Adviser acted as the Secretary to the Committee.
Independent Auditor’s Report
KPMG Professional Services Telephone 234 (1) 234 8955

KPMG Tower 234 (1) 234 8599
Bishop Aboyade Cole Street
Victoria Island Internet home.kpmg/ng
PMB 40014, Falomo
Lagos
To the shareholders of NEM Insurance Plc

Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated and separate financial statements of NEM Insurance Plc (“the Company”) and
its subsidiaries (together, “the Group”), which comprise:
•• the consolidated and separate statements of financial position as at 31 December 2023;
•• the consolidated and separate statements of profit or loss and other comprehensive income;
•• the consolidated and separate statements of changes in equity;
•• the consolidated and separate statements of cash flows for the year then ended; and
•• the notes, comprising material accounting policies and other explanatory information.
In our opinion, the accompanying consolidated and separate financial statements give a true and fair view of the
consolidated and separate financial position of the Company and its subsidiaries as at 31 December 2023, and
of its consolidated and separate financial performance and its consolidated and separate cash flows for the year
then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards
Board (IFRS Accounting Standards) and in the manner required by the Companies and Allied Matters Act (CAMA),
2020 and the Financial Reporting Council of Nigeria (Amendment) Act, 2023, the Insurance Act 2003 and relevant
National Insurance Commission of Nigeria (“NAICOM”) Circulars.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the consolidated and separate
Financial Statements section of our report. We are independent of the Group and Company in accordance with
International Ethics Standards Board for Accountants International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code) together with the ethical requirements that are
relevant to our audit of the consolidated and separate financial statements in Nigeria and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated and separate financial statements of the current period. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Adoption of IFRS 17 Insurance Contracts

On 1 January 2023, the Group adopted IFRS 17 Insurance Contracts which replaced the existing standard for
insurance contracts IFRS 4. The adoption of IFRS 17 was done on a retrospective basis which had an impact
on the Group’s January 1, 2022 opening equity balances. IFRS 17 is a complex accounting standard requiring
considerable judgment and interpretation in its implementation, and significantly modifies the accounting criteria for
the recognition and measurement of insurance contracts.
Independent Auditor’s Report Cont’d
In adopting the new standard, the Group used significant judgment in developing and implementing accounting
policies, including policies specific to transition. In particular, the determination of the measurement models (general
model or premium allocation approach) to apply under the standard, the determination of risk adjustment and
onerous contract methodologies, and the determination of the discount rate, were deemed to be significant to the
overall impact of transition. The new standard has also had a significant impact on the disclosures in the financial
statements.
Due to the significance of the changes introduced by the standard, we considered the transition to the new standard
to be a key audit matter.
Refer to the following notes in the consolidated and separate financial statements: Note 1.5.8 Judgments, Estimates
and Assumptions on Transition to IFRS 17 and Note 3.33 Transition Policy and adjustments.
How the matter was addressed in our audit

Our audit procedures included the following:
•• With the assistance of our actuarial specialist, we performed the following procedures:
•• We assessed the significant judgements used by the Group to determine the relevant accounting policies
against the requirements of IFRS 17. These included judgements used to determine the measurement
models adopted, risk adjustment, onerous contracts and discount rates used.
•• We evaluated the appropriateness of the Premium Allocation Approach for insurance and reinsurance
contracts with coverage periods greater than one year, including testing the relevant supporting data, the
significant assumptions used, and the accuracy of models used.
•• We evaluated the appropriateness of the methodology used to determine the risk adjustment, including
assessing the underlying discounted cash flow model and significant assumptions.
•• We assessed the updated discounting methodology, including the determination of the illiquidity premium
against the requirements of the standard and compared to external market data where available.
•• We tested the supporting calculations related to the material transition adjustments at 1 January 2022, with
the standard applied retrospectively.
•• e also assessed the reasonableness of the new and restated disclosures in the consolidated and separate
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financial report against the requirements of IFRS 17.
Valuation of insurance contract liabilities

As at 31 December 2023, the Group had insurance contract liabilities of N25.29 billion (2022: N14.67 billion). The
measurement of insurance liabilities consists of the liability for remaining coverage (LRC) and the liability for incurred
claims (LIC) including both reported but not settled claims as well as incurred but not reported claims (IBNR).
The Group adopted IFRS 17 Insurance Contracts from 1 January 2023 and comparative figures have been
restated. The Group primarily uses the Premium Allocation Approach (PAA) under IFRS 17. The PAA is applied for
the measurement of the groups of insurance contracts.
The result of management’s assessments regarding the calculation of the liability for incurred claims depends
on inputs, the choice of actuarial methods and the precision of management judgment in determining actuarial
assumptions. Key assumptions with the greatest impact on the carrying amount include inflation, discount rates as
well as estimated future payments for claims.
Valuation of insurance contract liabilities requires significant management judgement and accounting assumptions
about uncertain future events, which may materially affect the carrying amount, and thus is a key audit matter.
Refer to the following notes in the consolidated and separate financial statements: Note 1.5.4 Judgments,
Estimates and Assumptions on Insurance Contracts liabilities, Note 3 IFRS 17 – Insurance Contracts Accounting
Policies, Note 6 Reinsurance contract assets, Note 15 Insurance Contract Liabilities and Note 49 Financial Risk
Management Policy – Management of financial and insurance risk section.
How the matter was addressed in our audit

Our audit procedures included the following:
•• We evaluated the design, implementation and operating effectiveness of key controls implemented by the
Group and the Company which includes management review of data used for the valuation of insurance con-
tract liabilities
•• We evaluated the Group’s methodology to determine and allocate expected premium receipts to periods.
•• We tested the completeness and accuracy of the databases used in determining the assumptions, as well as
on actuarial calculations.
•• We considered the Group’s valuation methodology and assumptions for consistency between reporting peri-
ods, as well as for indicators of possible bias.
•• Assisted by our actuarial specialists, we performed the following procedures:
•• We evaluated management’s PAA eligibility assessment.
•• We evaluated the appropriateness of methods/models and assumptions to determine ultimate expected
claims including ultimate claims ratios, frequency and severity of claims, payment patterns and estimate
discount rate curves.
•• We performed walkthroughs on the computation of insurance revenue for selected portfolios for each
cohort under PAA.
•• We assessed the assumptions used in estimating risk adjustments to evaluate whether it is in line with the
requirements of the relevant accounting standard and industry practices.
•• We assessed whether the method/ model for determining future cash flows is in line with the requirements
of the relevant accounting standard and standard industry practices.
•• We assessed the appropriateness of the disclosures in the consolidated and separate financial statements
with regard to the liability for incurred claims associated with the premium allocation approach, considering the
requirements of IFRS 17.
Other Matter
The consolidated and separate financial statements for the year ended 31 December 2022 were audited by another
auditor who expressed an unmodified opinion on those consolidated and separate financial statements on 28
March 2023.
Other Information
The Directors are responsible for the other information. The other information comprises the Corporate Information,
Results at a Glance, Reports of Directors, Report of external consultants on Board Appraisal, Statement of Directors’
responsibilities, Statement of Corporate responsibilities, , Environmental, Social and Governance (ESG) Report,
Report of the Audit and Compliance Committee and Other national disclosures which we obtained to the date of
this auditor’s report, but does not include the consolidated and separate financial statements and our auditor’s
report thereon.
Other information also include Notice of 54th Annual General Meeting, Message from the Chairman, GMD/CEO
Report, Profile of the Board of Directors, Management Team Profile, Proxy Form, Shareholder’s information,
E-dividend Mandate Activation Form, together the “outstanding reports”, which are expected to be made available
to us after that date.
Our opinion on the consolidated and separate financial statements does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated and separate financial statements, our responsibility is to read the
other information identified above and in doing so, consider whether the other information is materially inconsistent
with the consolidated and separate financial statements or our knowledge obtained in the audit or otherwise
appears to be materially misstated. If, based on the work we have performed on the other information that we have
obtained prior to the date of the auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
When we read the outstanding reports, if we conclude that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance.
Responsibilities of the Directors for the Consolidated and Separate Financial Statements
The Directors are responsible for the preparation of consolidated and separate financial statements that give a
true and fair view in accordance with IFRS Accounting Standards and in the manner required by the Companies
and Allied Matters Act (CAMA), 2020 and the Financial Reporting Council of Nigeria (Amendment) Act, 2023, the
Insurance Act 2003 and relevant National Insurance Commission of Nigeria (“NAICOM”) Circulars, and for such
internal control as the directors determine is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate financial statements, the directors are responsible for assessing the
Group and Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group
and Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
•• Identify and assess the risks of material misstatement of the consolidated and separate financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
•• btain an understanding of internal control relevant to the audit in order to design audit procedures that are
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appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group and Company’s internal control.
•• valuate the appropriateness of accounting policies used and the reasonableness of accounting estimates
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and related disclosures made by the directors.
•• onclude on the appropriateness of directors’ use of the going concern basis of accounting and, based on
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the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group and Company’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in
the consolidated and separate financial statements or, if such disclosures are inadequate, to modify our opin-
ion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group and Company to cease to continue as a going concern.
•• valuate the overall presentation, structure and content of the consolidated and separate financial statements,
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including the disclosures, and whether the consolidated and separate financial statements represent the un-
derlying transactions and events in a manner that achieves fair presentation.
•• btain sufficient appropriate audit evidence regarding the financial information of the entities or business ac-
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tivities within the Group to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the group audit. We remain solely responsible for our audit
opinion.
We communicate with the Audit and Compliance Committee regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the Audit and Compliance Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or
safeguards applied.
From the matters communicated with the Audit and Compliance Committee, we determine those matters that were
of most significance in the audit of the consolidated and separate financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication..
Report on Other Legal and Regulatory Requirements

Compliance with the requirements of Schedule 5 of the Companies and Allied Matters Act (CAMA), 2020.
i. We have obtained all the information and explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit.
ii. In our opinion, proper books of account have been kept by the Company, so far as appears from our examination
of those books.
iii. The Company’s statement of financial position and statement of profit or loss and other comprehensive income
are in agreement with the books of account.
Penalties
The Company paid penalties in respect of contravention of the requirements of the National Insurance Commission
Guidelines and Circulars during the year ended 31 December 2023. Details of penalties paid are disclosed in Note
36(e) to the consolidated and separate financial statements.
Compliance with FRC Guidance on Assurance Engagement Report on Internal Control over Financial Reporting
In accordance with the requirements of the Financial Reporting Council of Nigeria, we performed a limited assurance
engagement and reported on management’s assessment of the Group’s internal control over financial reporting
as of December 31, 2023. The work performed was done in accordance with ISAE 3000 (Revised) Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information and the FRC Guidance on Assurance
Engagement Report on Internal Control over Financial Reporting. We have issued an unmodified conclusion in our
report dated 29 May 2024.
Obaloje J. Oseme,
FCA FRC/2013/PRO/ICAN/004/00000004803
For: KPMG Professional Services
Chartered Accountants
29 May 2024
Lagos, Nigeria
NEM Insurance Plc
Statement Of Material
Accounting Policies
1.0 General Information
(a) NEM Insurance Plc (‘‘the Company”) is a public limited liability company domiciled in Nigeria. The Company’s
registered and corporate office is 199, Ikorodu Road, Obanikoro, Lagos.
In 2016, the Company opened a subsidiary NEM Asset Management Company Limited . The company also
established another subsidiary, Nem Health Limited which commenced business in 2023.
The financial statements were authorized for issue by the Board of Directors on 29 April 2024.
(b) Principal activity

The Group is principally engaged in the business of General Insurance activities . Such services include
provision of non-life insurance services which ranges from motor, fire, marine & aviation, general accident, oil
and gas, engineering, bond and agric businesses for both corporate and individual customers. NEM Asset
Management Company Limited, a wholly owned subsidiary was created to engage in investment business
of all kinds including vehicle Leasing, machinery acquisition, hire purchase of diverse assets etc. for both
individual & corporate organizations. NEM Health Limited was established by the group to provide all forms of
health insurance services to both individuals and corporate clients.
1.1 Going Concern

These financial statements have been prepared on the going concern basis. The Group has no intention or need
to reduce substantially its business operations, the management believes that the going concern assumption
is appropriate for the Group due to sufficient capital adequacy ratio and projected liquidity, based on historical
experience that short-term obligations will be refinanced in the normal course of the business. Liquidity ratio and
continuous evaluation of current ratio of the group is carried out by the group to ensure that there are no going
concern threats to the operations of the group.
1.2 Basis of Preparation and Compliance with IFRS

The Group’s financial statements for the year 2023 have been prepared in accordance with the IFRS Accounting
Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards), Companies
and Allied Matters Act, 2020, Insurance Act CAP I17, LFN 2004 and Prudential Guidelines issued by National
insurance Commission and Investment and Securities Act 2007.
1.2.1 Foreign currency translation

(a) Functional and Presentation Currency
The financial statements are presented in Nigerian currency (Naira) which is the Group’s functional currency.
Except otherwise indicated, financial information presented in Naira have been rounded to the nearest thousand
(N ‘000)
1.2.2 Basis of measurement

The financial statements are prepared on the historical cost basis except for the following:
•• Financial instruments at fair value through profit or loss;
•• Financial assets classified as FVOCI which are measured at fair value through other comprehensive income;
•• Land and building (included in property and equipment) which are measured at fair value through other com-
prehensive income;
•• Financial assets which are measured at amortized costs; and
•• Investment properties which are measured at fair value.
•• In accordance with IFRS 17 Insurance contracts, the Group has applied existing accounting policies for its
Non-life Insurance contracts, modified as appropriate to comply with the IFRS framework.

NEM Insurance Plc
Accounting Policies Cont’d
1.3 Critical Accounting Estimates, Judgments and Assumptions
The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the process of applying the
Group’s accounting policies. The estimates and associated assumptions are based on historical experience and
various other factors that are believed to be reasonable under the circumstances, the results of which form the
basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions. Changes in
assumptions may have a significant impact on the financial statements in the period the assumptions changed.
Management believes that the underlying assumptions are appropriate and that the Group’s financial statements
therefore present the financial positions and results fairly. The areas involving a higher degree of judgment or
complexity, or areas where assumptions and estimates are material to the financial statements are disclosed in
Note 1.5.
1.4 Judgments, Estimates and Assumptions

The estimates and underlying assumptions are reviewed on an on-going basis. Revision to accounting estimates
are recognized in the year in which the estimate is revised, if the revision affects only that year or if the revision
affects both current and future years.
Information about significant areas of estimation uncertainty and critical judgments in applying accounting policies
that have the most material effect on the amounts recognized in the financial statements are described below:
1.4.1 Income Taxes

Significant estimates are required in determining the provision for income taxes. There are many transactions and
calculations for which the ultimate tax determination is uncertain. The Group recognizes liabilities for anticipated tax
issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters
is different from the amounts that were initially recorded, such differences will impact the income tax and deferred
tax provisions.
1.4.2 Retirement Benefits

The present value of the retirement benefit obligations depends on a number of factors that are determined on an
actuarial basis using a number of assumptions. Any changes in these assumptions will impact the carrying amount
of gratuity obligations. The assumptions used in determining the net cost (income) for gratuity include the discount
rate, rate of return on assets, future salary increments and mortality rates.
The Group determines the appropriate discount rate at the end of the year. This is the interest rate that should be
used to determine the present value of estimated future cash outflows expected to be required to settle the gratuity
obligations. In determining the appropriate discount rate, the Group considers the interest rates of high-quality
government bonds that are denominated in the currency in which the benefits will be paid and that have terms to
maturity approximating the terms of the related gratuity liability. Other key assumptions for gratuity obligations are
based in part on current market conditions.
In most cases, no explicit assumptions are made regarding the future rates of claims inflation or loss ratios. Instead,
the assumptions used are those implicit in the historical claims development data on which the projections are
based. Additional qualitative judgment is used to assess the extent to which past trends may not apply in future,
(e.g. to reflect one-off occurrences, changes in external or market factors such as public attitudes to claiming,
economic conditions, levels of claims inflation, judicial decisions and legislation, as well as internal factors such as
portfolio mix, policy features and claims handling procedures) in order to arrive at the estimated ultimate cost of
claims that present the likely outcome from the range of possible outcomes, taking account of all the uncertainties
involved.
NEM Insurance Plc
Similar judgments, estimates and assumptions are employed in the assessment of adequacy of provisions for
unearned premium. Judgment is also required in determining whether the pattern of insurance service provided by
a contract requires amortization of unearned premium on a basis other than time apportionment.
1.4.3 Fair Valuation of Investment Properties

The fair value of investment properties is based on the nature, location and condition of the specific asset. The
fair value is determined by reference to observable market prices. The fair value of investment property does not
reflect the related future benefits from this future expenditure. These valuations are performed annually by external
appraisers. Assumptions are made about expected future cash flows and the discounting rates.
1.4.4 Liability for remaining coverage (LRC) and Liability for Incurred claims (LIC)
The measurement of group’s liability resulting from the insurance contracts that it issues requires a significant use
of estimates and judgements. The group estimates the liability for future insurance contract obligations, taking into
account the expected cash flows for fulfilling these contracts. This involves making assumptions about future claim
payments, premium income, and discount rates. See note 2.38 for how the group recognises and measures this
liabilities.
1.4.5 Reinsurance contracts

The group assesses the impact of the reinsurance contracts that it hold on its financial statements, including
estimating the expected recoveries from reinsurers. This involves evaluating the terms of reinsurance agreements,
the creditworthiness of reinsurers, and the effect on the measurement of re-insurance contract assets and liabilities.
See note 2.45 for how the group recognises and measures reinsurance contracts.
1.4.6 Fulfillment Cash Flows

In estimating its liabilities and assets as it relates to insurance and reinsurance contracts, the group makes significant
assumptions relating to the future cash flows that will arise from fulfilling insurance contracts, considering variables
such as claims experience, lapses, and policyholder behavior. These estimates require judgment and are influenced
by historical data and actuarial projections. See note 2.37 for how the group determines and measures cashflows
relating to insurance and reinsurance contracts.
The group incorporates, in an unbiased way, all reasonable and supportable information that is available without
undue cost or effort at the reporting date. This information includes both internal and external historical data about
claims and other experience, updated to reflect current expectations of future events.The estimates of future cash
flows reflect the Group’s view of current conditions at the reporting date, using market variables consistent with
observable market prices, where applicable.
1.4.7 Risk adjustment

In the measurement of risk adjustment, the group makes use of significant judgements including estimations,
actuarial projections and historical data in determining a reasonable compensation for bearing non-financial risks as
it relates to insurance contracts that its issues. It also employs similar assumptions and methodoligies in estimating
the expected reinsurance portion or recoverrable as it relates to risk adjustment. See note 2.40 for the company’s
policy regarding the determination and measurement of risk adjustment.
1.4.8 IFRS 17 Transition

The measurement of the Group’s liability for the IFRS 17 transition resulting from the insurance contracts that
it issues requires a significant use of estimates and judgements. The Group estimates the IFRS 17 transition
insurance contract obligations, taking into account the contract’s fulfilment cashflows. The Group has applied
the full retrospective approach on transition to all short-term insurance contracts in force at the transition date.
NEM Insurance Plc
All groups of insurance and Reinsurance contracts for which the full retrospective approach was impracticable-
modified retrospective approach was adopted. This involves making assumptions about future claim payments,
premium income, and discount rates. See note 2.53 for full disclosure of the group’s IFRS 17 transition policy.
1.4.9 Discount rates

The determination of appropriate discount rates to value future cash flows is critical in the application of IFRS 17. The
group considers factors such as the time value of money, credit risks and iliquidity premiums in selecting its discount
rates. Significant judgement is used by the group to ensure that the selected rates reflects the characteristics of
the cashflows and the risks associated with insurance contracts. See note 2.39 for the Group’s policy regarding
discount rates used in assessing insurance and reinsurance contracts.
1.5 Changes in material accounting policies
1.5.1 Material accounting policy information

The Group adopted Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2) from
1 January 2023. Although the amendments did not result in any changes to the accounting policies themselves,
they impacted the accounting policy information disclosed in the financial statements.
The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. The amendments
also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to
provide useful, entity-specific accounting policy information that users need to understand other information in the
financial statements.
Management reviewed the accounting policies and made updates to the information disclosed in Note 2 Material
accounting policies (2022: Significant accounting policies) in certain instances in line with the amendments.
1.5.2 New standards, interpretations and amendments effective from 1 January 2023
The effective interpretations and IFRS Accounting Standards that need to be considered for financial years ended
31 December 2023 are listed below:
Standard/Interpretation Date issued by Effective

IASB date
IFRS 17 Insurance contracts. This establishes the principles for the rec- 1 June 2020 1 January 2023
ognition, measurement, presentation and disclosure of insurance
contracts within the scope of the standard.
IAS 1 Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS 12 February 2021 1 January 2023
Practice Statement 2)
IAS 8 Definition of Accounting Estimates (Amendments to IAS 8) 12 February 2021 1 January 2023
IAS 12 Deferred Tax related to Assets and Liabilities arising from a single 7 May 2021 1 January 2023
Transaction (Amendments to IAS 12)
Adoption of IFRS 17
The Group has initially applied IFRS 17, including any consequential amendments to other standards, from 1 January
2023. These standards have brought significant changes to the accounting for insurance and reinsurance contracts
and financial instruments. As a result, the Group has restated certain comparative amounts and presented a third
statement of financial position as at 1 January 2022. Except for the changes below, the Group has consistenly
applied the accounting policies as set out in to all periods presented in these consolidated financial statements.
NEM Insurance Plc
Under IFRS 17, insurance revenue in each reporting period represents the changes in the liabilities for remaining
coverage that relate to services for which the Group expects to receive consideration and an allocation of premiums
that relate to recovering insurance acquisition cash flows. In addition, investment components are no longer included
in insurance revenue and insurance service expenses. Insurance finance income and expenses are prsented in the
profit or loss separately from insurance revenue and insurance service expenses.
For an explanation of how the Group accounts for insurance and reinsurance contracts under IFRS 17, see Note
2.30 to 2.53.
1.5.3 New standards, amendments and interpretations issued but not yet effective
There are new or revised IFRS Accounting Standards and Interpretations in issue that are not yet effective. The
directors have considered all of these IFRS Accounting Standards and Interpretations and found none to be
applicable to the business of the entity and therefore do not expect any impact on future financial statements.
2 Material Accounting Policies

Material accounting policies are defined as those that are reflective of significant judgements and uncertainties and
potentially give rise to different results under different assumptions and conditions.
The accounting policies set out below have been consistently applied to all periods presented in these financial
statements.
2.1 Consolidation
(i) Business combination
The Group accounts for business combinations using the acquisition method when control is transferred to the
Group. In determining whether an acquired set of activities and assets is a business, the Group assesses whether
the acquired set includes, at a minimum, an input and a substantive process that together significantly contribute to
the ability to create outputs. The consideration transferred in the acquisition is generally measured at fair value, as
are the identifiable net assets acquired. Any gain on a bargain purchase is recognised in profit or loss immediately.
Transaction costs are expensed as they are incurred, unless they are related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such
amounts are generally recognised in profit or loss.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured
and settlement is accounted for within equity. Other contingent consideration is remeasured at fair value at each
reporting date and subsequent changes in the fair value of the contingent consideration are recognised in profit or
loss.
If share-based payment awards (replacement awards) are required to be exchanged for awards held by the
acquiree’s employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards
is included in measuring the consideration transferred in the business combination. This determination is based on
the market-based measure of the replacement awards compared with the market-based measure of the acquiree’s
awards and the extent to which the replacement awards relate to pre-combination service.
(ii) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect those returns through its power
over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from
the date on which control commences until the date on which control ceases.
NEM Insurance Plc
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions (transactions with owners). Any difference between the amount by which the non- controlling interest
is adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to
the Group.
Inter- company transactions, balances and unrealized gains on transactions between Companies within the Group
are eliminated on consolidation. Unrealized losses are also eliminated in the same manner as unrealized gains, but
only to the extent that there is no evidence of impairment. Accounting policies of the subsidiary has been changed
where necessary to ensure consistency with the policies adopted by the Group. Investment in the subsidiary in the
separate financial statements of the Company entity is measured at cost.
Acquisition - related costs are expensed as incurred.

If the business combination is achieved in stages, fair value of the acquirer’s previously held equity interest in the
acquiree is remeasured to fair value at the acquisition date through profit or loss.
(iii) Disposal of subsidiaries

On loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any controlling interests
and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control
is recognized in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is
measured at fair value at the date that control is lost. Subsequently, that retained interest is accounted for as
an equity, accounted investment or as a financial asset under the Amortized Cost or Fair Value Through Other
Comprehensive Income category depending on business model intended and the level of influence retained.
(iv) Non-controlling interests (NCI)
NCI are initially measured at their proportionate share of the acquiree’s identifiable net assets at the date of
acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for
as equity transactions.
(v) Special purpose entities

Special purpose entities that are created to accomplish a narrow and well- defined objective such as the
securitization of particular assets, or the execution of specific borrowings or lending transactions or the provision
of certain benefits to employee.
The financial statements of special purpose entities are included in the Group’s consolidated financial statements,
where the substance of the relationship is that the Group controls the special purpose entity.
(vi) Associates
In the financial statements, the Company’s investment in its associate is accounted for using the equity method
of accounting. An associate is an entity in which the Company has significant influence and which is neither a
subsidiary nor a joint venture.
Under the equity method, the investment in the associate is carried in the statement of financial position at cost plus
post-acquisition changes in the Company’s share of net assets of the associate.
The share of profit of the associate is shown on the face of the income statement. This is profit attributable to
equity holders of the associate and, therefore, is profit after tax and non-controlling interests in the subsidiaries of
the associates.
NEM Insurance Plc
2.2 Cash and Cash Equivalents
Cash and cash equivalents consist of cash in hand and at banks and highly liquid financial assets with original
maturities of less than three months, which are subject to insignificant risk of changes in their fair value, and are
used by the Group in the management of its short-term commitments. Due to their short-term nature, the carrying
value of cash and cash equivalents approximates their fair value, hence they are carried at fair value in the statement
of financial position.
2.3 Financial Instruments

2.3.1 Recognition
The Group on the date of origination or purchase recognizes placements, equity securities and deposits at the
fair value of consideration paid. Regular-way purchases and sales of financial assets shall be recognized on the
settlement date. All other financial assets and liabilities, including derivatives, shall be initially recognized on the
trade date at which the Group becomes a party to the contractual provisions of the instrument.
2.3.2 Classification and Measurement

Initial measurement of a financial asset or liability shall be at fair value plus transaction costs that are directly
attributable to its purchase or issuance. For instruments measured at fair value through profit or loss, transaction
costs shall be recognized immediately in profit or loss. Financial assets include placement with banks, treasury bills
and equity instruments.
The Group classifies its financial assets into the following categories in line with the provisions of IFRS 9:
(a) Fair Value Through Profit or Loss (FVTPL)
(b) Amortized Cost
(c) Fair Value Through Other Comprehensive Income (FVOCI)
The Group shall classify its financial assets based on the business model for managing the assets and the asset’s
contractual cash flows characteristics.
Business Model Assessment

Business model assessment shall involve determining whether financial assets are managed in order to generate
cash flows from collection of contractual cash flows, selling financial assets or both. The Group shall assess
business model at a portfolio level reflective of how groups of assets are managed together to achieve a particular
business objective. For the assessment of business model the Group will take into consideration the following
factors:
The stated policies and objectives for the portfolio and the operation of those policies in practice. In particular,
whether management’s strategy focuses on earning contractual interest revenue, maintaining a particular interest
rate profile, matching the duration of the financial assets to the duration of the liabilities that shall be funding those
assets or realizing cash flows through the sale of the assets;
(i) How the performance of assets in a portfolio will be evaluated and reported to the relevant heads of departments
and other key decision makers within the Group’s business lines;
(ii) The risks that affect the performance of assets held within a business model and how those risks shall be
managed;
(iii) How compensation shall be determined for the Group’s business lines, management that manages the assets;
and
(iv) The frequency and volume of sales in prior periods and expectations about future sales activity.
NEM Insurance Plc
Management shall determine the classification of the financial instruments at initial recognition. The business model
assessment falls under three categories:
I) Business Model 1(BM1): Financial assets held with the sole objective to collect contractual cash flows
II) Business Model 2 (BM2): Financial assets held with the objective of both collecting contractual cash flows and
selling; and
III) Business Model 3 (BM3): Financial assets held with neither of the objectives mentioned in BM1 or BM2 above.
These shall be basically financial assets held with the sole objective to trade and to realize fair value changes.
The Group may decide to sell financial instruments held under the BM1 category with the objective to collect
contractual cash flows without necessarily changing its business model if one or more of the following conditions
shall be met:
(i) Where these sales shall be infrequent even if significant in value. A Sale of financial assets shall be considered
infrequent if the sale shall be one-off during the Financial Year and/or occurs at most once during the quarter
or at most three (3) times within the Financial Year.
(ii) Where these sales shall be insignificant in value both individually and in aggregate, even if frequent. A sale shall
be considered insignificant if the portion of the financial assets sold shall be equal to or less than five (5) per
cent of the carrying amount (book value) of the total assets within the business model.
(iii) When these sales shall be made close to the maturity of the financial assets and the proceeds from the
sales approximates the collection of the remaining contractual cash flows. A sale is considered to be close to
maturity if the financial asset has a tenor to maturity of not more than one (1) year and/or the difference between
the remaining contractual cash flows expected from the financial asset does not exceed the cash flows from
the sales by ten (10) per cent.
Other reasons: The following reasons outlined below may constitute ‘Other Reasons’ that may necessitate selling
financial assets from the BM1 category that will not constitute a change in business model:
1. Selling the financial asset to realize cash to deal with unforeseen need for liquidity (infrequent).
2. Selling the financial asset to manage credit concentration risk (infrequent)
3. Selling the financial asset as a result of changes in tax laws (infrequent).
4. Other situations also depend upon the facts and circumstances which need to be judged by the Management
Cash flows Characteristics Assessment

The Group shall assess the contractual features of an instrument to determine if they give rise to cash that shall be
consistent with a basic investment arrangement.
Contractual cash flows shall be consistent with a basic deposit arrangement if they represent cash flows that are
solely payments of principal and interest on the principal amount outstanding (SPPI).
Principal shall be defined as the fair value of the instrument at initial recognition. Principal may change over the life
of the instruments due to repayments. Interest shall be defined as consideration for the time value of money and
the credit risk associated with the principal amount outstanding and for other basic lending risks and costs (liquidity
risk and administrative costs), as well as a profit margin.
A. Classification of Financial Assets

a) Financial assets measured at amortized cost
Financial assets shall be measured at amortized cost if they are held within a business model whose objective shall
be to hold for collection of contractual cash flows where those cash flows represent solely payments of principal
and interest. After initial measurement, debt instruments in this category shall be carried at amortized cost using
NEM Insurance Plc
the effective interest rate method. The effective interest rate shall be the rate that discounts estimated future cash
payments or receipts through the expected life of the financial asset to the gross carrying amount of a financial
asset. Amortized cost shall be calculated taking into account any discount or premium on acquisition, transaction
costs and fees that shall be an integral part of the effective interest rate. Amortization shall be included in Interest
income in the Consolidated Statement of profit or loss and other comprehensive Income. Impairment on financial
assets measured at amortized cost shall be calculated using the expected credit loss approach.
Financial assets measured at amortized cost shall be presented net of the allowance for credit losses (ACL) in the
statement of financial position.
b) Financial assets measured at FVOCI

Financial assets shall be measured at FVOCI if they are to be held within a business model whose
objective shall be to hold for collection of contractual cash flows and for selling financial assets, where
the assets’ cash flows represent payments that shall be solely payments of principal and interest.
Subsequent to initial recognition, unrealized gains and losses on debt instruments measured at FVOCI shall be
recorded in Other Comprehensive Income (OCI).
c) Financial assets measured at FVTPL

Financial assets measured at FVTPL include assets held for trading purposes, assets held as part of a portfolio
managed on a fair value basis and assets whose cash flows do not represent payments that shall be solely
payments of principal and interest. Financial assets may also be designated at FVTPL if by so doing eliminates or
significantly reduces an accounting mismatch which would otherwise arise. These instruments shall be measured
at fair value in the Consolidated Statement of Financial Position, with transaction costs recognized immediately in
the Consolidated Statement of profit or loss and other comprehensive Income.
d) Equity Investments
Equity instruments shall be measured at FVTPL, unless an election is made to designate them at FVOCI upon
purchase. For equity instruments measured at FVTPL, changes in fair value shall be recognized in the Consolidated
Statement of Profit or Loss and Other Comprehensive Income. The Group can elect to classify non-trading equity
instruments at FVOCI. This election will be used for certain equity investments for strategic or longer term investment
purposes. The FVOCI election shall be made upon initial recognition, on an instrument-by-instrument basis and
once made shall be irrevocable. Gains and losses on these instruments including when derecognized/sold shall
be recorded in OCI and shall not be subsequently reclassified to the Consolidated Statement of Profit or Loss and
Other Comprehensive Income.
Dividends received shall be recorded in Interest income in the Consolidated Statement of Profit or Loss and Other
Comprehensive Income. Any transaction costs incurred upon purchase of the security shall be added to the
cost basis of the security and shall not be reclassified to the Consolidated Statement of Profit or Loss and Other
Comprehensive Income on sale of the security.
B. Classification of Financial Liabilities

Financial liabilities shall be classified into one of the following measurement categories:
a) Fair Value through Profit or Loss (FVTPL)
b) Amortized cost
(a) Financial Liabilities at fair value through profit or loss

Financial liabilities accounted for at fair value through profit or loss fall into two categories:
Financial liabilities held for trading and Financial liabilities designated at fair value through profit or loss on inception
Financial liabilities at fair value through profit or loss shall be financial liabilities held for trading. A financial
NEM Insurance Plc
liability shall be classified as held for trading if it shall be incurred principally for the purpose of repurchasing
it in the near term or if it shall be part of a portfolio of identified financial instruments that shall be managed
together and for which there shall be evidence of a recent actual pattern of profit-taking. Derivatives shall
also be categorized as held for trading unless they shall be designated and effective as hedging instruments.
Financial liabilities held for trading also include obligations to deliver financial assets borrowed by a short seller.
Gains and losses arising from changes in fair value of financial liabilities classified as held for trading shall be
included in the income statement and shall be reported as ‘Net gains/(losses) on financial instruments classified as
held for trading’. Interest expenses on financial liabilities held for trading shall be included in ‘Net interest income’.
Financial Liabilities shall be designated at FVTPL when either the designation eliminates or significantly reduces
an accounting mismatch which would otherwise arise or the financial liability contains one or more embedded
derivatives which significantly modify the cash flows otherwise required. For liabilities designated at fair value through
profit or loss, all changes in fair value shall be recognized in the Consolidated Statement of profit or loss and other
comprehensive Income, except for changes in fair value arising from changes in the Group’s own credit risk which
shall be recognized in OCI. Changes in fair value of liabilities due to changes in the Group’s own credit risk, which
are recognized in OCI, shall not be subsequently reclassified to the Consolidated Statement of Profit or Loss and
Other Comprehensive Income upon derecognition/extinguishment of the liabilities.
(b) Financial Liabilities at amortized cost
Financial liabilities that are not classified at fair value through profit or loss fall into this category and shall be
measured at amortized cost using the effective interest rate method. Financial liabilities measured at amortized cost
shall be debt securities in issue for which the fair value option is not applied, convertible bonds and subordinated
debts.
C. Reclassifications
Financial assets shall not be reclassified subsequent to their initial recognition, except in the period after the Group
changes its business model for managing financial assets. A change in the Group’s business model will occur only
when the Group either begins or ceases to perform an activity that is significant to its operations such as:
- Significant internal restructuring or business combinations; for example: an acquisition of a private asset
management company that might necessitate transfer and sale of assets to willing buyers, this action will constitute
changes in business model and subsequent reclassification of the assets held from BM1 to BM2 Category.
Any other reason that might warrant a change in the Group’s business model are determined by management
based on facts and circumstances.
The following shall not be considered to be changes in the business model:

(a) A change in intention related to particular financial assets (even in circumstances of significant changes in
market conditions)
(b) A temporary disappearance of a particular market for financial assets.
(c) A transfer of financial assets between parts of the Group with different business models.
When reclassification occurs, the Group shall reclassify all affected financial assets in accordance with the new
business model. Reclassification shall be applied prospectively from the ‘reclassification date’. Reclassification date
shall be ‘the first day of the first reporting period following the change in business model. For example, if the Group
decides to shut down the retail business segment on 30 April 2020, the reclassification date will be 1 January,
2021 (i.e. the first day of the entity’s next reporting period), the Group shall not engage in activities consistent with
its former business model after 30 April, 2020. Gains, losses or interest previously recognized shall not be restated
when reclassification occurs.
NEM Insurance Plc
2.3.3 Impairment Of Financial Assets
In line with IFRS 9, the Group assesses the under listed financial instruments for impairment using Expected Credit
Loss (ECL) approach:
1. Amortized cost financial assets; and
2. Debt securities classified as at FVOCI.
Equity instruments and financial assets measured at FVTPL shall not be subjected to impairment as it is not required
under the standard.
Expected Credit Loss Impairment Model
The Group’s allowance for credit losses calculations shall be outputs of models with a number of underlying
assumptions regarding the choice of variable inputs and their interdependencies. The expected credit loss
impairment model reflects the present value of all cash shortfalls related to default events either over the following
twelve months or over the expected life of a financial instrument depending on credit deterioration from inception.
The allowance for credit losses reflects an unbiased, probability-weighted outcome which considers multiple
scenarios based on reasonable and supportable forecasts.
The Group shall adopt a three-stage approach for impairment assessment based on changes in credit quality since
initial recognition.
Stage 1 – Where there has not been a Significant Increase in Credit Risk (SICR) since initial recognition of a financial
instrument, an amount equal to 12 months expected credit loss shall be recorded. The expected credit loss shall be
computed using a probability of default occurring over the next 12 months. For those instruments with a remaining
maturity of less than 12 months, a probability of default corresponding to remaining term to maturity shall be used.
Stage 2 – When a financial instrument experiences a SICR subsequent to origination but is not considered to
be in default, it shall be included in Stage 2. This requires the computation of expected credit loss based on the
probability of default over the remaining estimated life of the financial instrument.
Stage 3 – Financial instruments that are considered to be in default shall be included in this stage. Similar to Stage
2, the allowance for credit losses captures the lifetime expected credit losses.
The guiding principle for ECL model shall be to reflect the general pattern of deterioration or improvement in the
credit quality of financial instruments since initial recognition. The ECL allowance shall be based on credit losses
expected to arise over the life of the asset (life time expected credit loss), unless there has been no significant
increase in credit risk since origination. Examples of financial assets with low credit risk (no significant increase in
credit risk) include: Risk free and gilt edged debt investment securities that shall be determined to have low credit
risk at the reporting date; and Other financial instruments (other than lease receivables) on which credit risk has not
increased significantly since their initial recognition.
Measurement of Expected Credit Losses
The probability of default (PD), exposure at default (EAD), and loss given default (LGD) inputs used to estimate
expected credit losses shall be modelled based on macroeconomic variables that are most closely related with
credit losses in the relevant portfolio.
Details of these statistical parameters/inputs are as follows:

PD – The probability of default shall be an estimate of the likelihood of default over a given time horizon. A default may
only happen at a certain time over the remaining estimated life, if the asset has not been previously derecognized
and are still in the portfolio.
NEM Insurance Plc
12-month PDs – This is the estimated probability of default occurring within the next 12 months (or over the
remaining life of the financial instrument if that is less than 12 months). This shall be used to calculate 12-month
ECLs.
Lifetime PDs – This is the estimated probability of default occurring over the remaining life of the financial
instrument. This shall be used to calculate lifetime ECLs for “stage 2” and stage 3 exposures. PDs shall be limited
to the maximum exposure required by IFRS 9
EAD – The exposure at default shall be an estimate of the exposure at a future default date, taking into account
expected changes in the exposure after the reporting date, including repayments of principal and interest, whether
scheduled by contract or otherwise, expected drawdowns on committed facilities, and accrued interest from
missed payments.
LGD – The loss given default shall be an estimate of the loss arising in the case where a default occurs at a given
time. It shall be based on the difference between the contractual cash flows due and those that the lender would
expect to receive, including from the realization of any collateral. It shall be usually expressed as a percentage of
the EAD.
The measurement of expected credit losses for each stage and the assessment of significant increases in credit risk
considers information about past events and current conditions as well as reasonable and supportable forecasts
of future events and economic conditions. The estimation and application of forward-looking information requires
significant judgement.
The Group shall rely on a broad range of forward looking information as economic inputs, such as GDP growth,
unemployment rates, central bank base rates, crude oil prices, inflation rates and foreign exchange rates. The
inputs and models used for calculating expected credit losses may not always capture all characteristics of the
market at the date of the financial statements. To reflect this, qualitative adjustments or overlays shall be made as
temporary adjustments using expert credit judgement.
The Group shall determine allowance for credit losses using three probability-weighted forward looking scenarios. The
Group shall consider both internal and external sources of information in order to achieve an unbiased measure of the
scenarios used. The Group prepares the scenarios using forecasts generated by credible sources such as Business
Monitor International (BMI), International Monetary Fund (IMF), Nigeria Bureau of Statistics (NBS), World Bank, Central
Bank of Nigeria (CBN), Nigeria Insurers Association, Financial Markets Dealers Quotation (FMDQ), and Trading Economics.
The Group estimates three scenarios for each risk parameter (LGD, EAD, CCF and PD) – Normal, Upturn and
Downturn, which in turn shall be used in the estimation of the multiple scenario ECLs. The ‘normal case’ represents
the most likely outcome and shall be aligned with information used by the company for other purposes such as
strategic planning and budgeting. The other scenarios represent more optimistic and more pessimistic outcomes.
The Group has identified and documented key drivers of credit risk and credit losses for each portfolio of financial
instruments and, using an analysis of historical data, has estimated relationships between macro-economic
variables, credit risk and credit losses.
Assessment of significant increase in credit risk (SICR)

At each reporting date, the Group shall assess whether there has been a significant increase in credit risk for
exposures since initial recognition by comparing the risk of default occurring over the remaining expected life from
the reporting date and the date of initial recognition. The assessment considers borrower-specific quantitative
and qualitative information without consideration of collateral, and the impact of forward-looking macroeconomic
factors. The common assessments for SICR on retail and non-retail portfolios include macroeconomic outlook,
management judgement, and delinquency and monitoring. Forward looking macroeconomic factors shall be a key
component of the macroeconomic outlook. The importance and relevance of each specific macroeconomic factor
NEM Insurance Plc
depends on the type of product, characteristics of the financial instruments and the borrower and the geographical
region.
The Group shall adopt a multi factor approach in assessing changes in credit risk. This approach considers:
Quantitative (primary), Qualitative (secondary) and Back stop indicators which are critical in allocating financial
assets into stages.
The quantitative models considers deterioration in the credit rating of obligor/counterparty based on the Group’s
internal rating system or External Credit Assessment Institutions (ECAI) while qualitative factors considers information
such as expected forbearance, restructuring, exposure classification by licensed credit bureau etc.
A backstop shall be used to ensure that in the (unlikely) event that the primary (quantitative) indicators do not
change and there is no trigger from the secondary (qualitative) indicators, an account that has breached the 30
days past due criteria for SICR and 90 days past due criteria for Default shall be transferred to stage 2 and stage
3 respectively except there is a reasonable and supportable evidence available without undue cost to rebut the
presumption.
Definition of Default and Credit Impaired Financial Assets

At each reporting date, the Group shall assess whether financial assets are credit impaired. A financial asset shall
be credit impaired when one or more of the following events have a detrimental impact on the estimated future cash
flows of the financial asset:
•• Significant financial difficulty of the Issuer;

•• A breach of contract such as a default or past due event;
•• It is becoming probable that the borrower will enter bankruptcy or other financial reorganization
•• The disappearance of an active market for a security because of financial difficulties
A debt that has been renegotiated due to a deterioration in the issuer’s condition shall be considered to be credit-
impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and
there shall be no other indicators of impairment. In making an assessment of whether an investment in sovereign
debts is credit-impaired, the Group shall consider the following factors:
1. The market’s assessment of credit worthiness as reflected in the bond yields

2. The rating agencies’ assessments of credit worthiness
3. The country’s ability to access the capital markets for new debt issuance
4. The probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory
debt forgiveness
5. The international support mechanisms in place to provide the necessary support as lender of last resort to
that country as well as the intention, reflected in public statements of governments and agencies to use those
mechanisms. This includes an assessment of the depth of those mechanisms and irrespective of the political
intent, whether there is the capacity to fulfil the required Criteria.
Presentation of allowance for ECL in the statement of financial position

Allowances for ECL shall be presented in the statement of financial position as follows:
•• Financial assets measured at amortized cost: as a deduction from the gross carrying amount of the assets
•• Financial assets measured at FVOCI: loss allowance shall be recognized in the statement of financial position
because the carrying amount of these assets shall be their fair value. However, the loss allowance shall be
disclosed and recognized in the fair value reserve.
NEM Insurance Plc
Write-off
The Group writes off an impaired financial asset (and the related impairment allowance), either partially or in full,
when there shall be no realistic prospect of recovery. After a full evaluation of a non-performing exposure, in the
event that either one or all of the following conditions apply, such exposure shall be recommended for write-off
(either partially or in full):
•• Continued contact with the customer is impossible;

•• Recovery cost is expected to be higher than the outstanding debt;
•• Amount obtained from realization of credit collateral security leaves a balance of the debt; or
•• It is reasonably determined that no further recovery on the facility is possible.
2.4 Trade Receivables

This relates to premium due from brokers. Trade receivables are initially recognized at fair value and subsequently
measured at amortized cost less provision for impairment. A provision for impairment is made when there is an
objective evidence (such as the probability of solvency or significant financial difficulties of the debtors) that the
Group will not be able to collect all the amount due based on the original terms of the invoice. Allowances are made
based on an impairment model which consider the loss given default for each customer, probability of default for
the sectors in which the customer belongs and emergence period which serves as an impairment trigger based on
the age of the debt. Impaired debts are derecognized when they are assessed as uncollectible. If in a subsequent
period, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognized, the previous recognized impairment loss is reversed to the extent
that the carrying value of the asset does not exceed its amortized cost at the reversed date. Any subsequent
reversal of an impairment loss is recognized in the profit or loss.
2.5 Trade Payables

This relates to outstanding balances to the Group’s reinsurance brokers. These amounts are initially recognized at
recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date of the liability is
less than one year discounting is omitted.
2.6 Other Receivables And Prepayments

2.6.1 Other receivables
Other receivables are made up of amounts due from parties which are not directly linked to insurance or invest-
ment contracts. Other receivables are stated after deductions of amount considered bad or doubtful of recovery.
When a debt is deemed not collectible, it is written-off against the related provision or directly to the profit or loss
to the extent not previously provided for. Any subsequent recovery of written-off debts is credited to the profit or
loss.
2.6.2 Prepayments
Prepayments are carried at cost less amortization and accumulated impairment losses.
2.7 Investment In Associate

In the separate financial statements of NEM Insurance Plc, investment in associate is accounted for using the
equity method of accounting.
Under the equity method, the investment in the associate is carried in the statement of financial position at cost
plus post-acquisition changes in the Company’s share of net assets of the associate.
NEM Insurance Plc
The share of profit of the associate is shown on the face of the income statement. This is profit attributable to
equity holders of the associate and, therefore, is profit after tax and non-controlling interests in the subsidiaries of
the associates.
2.8 Investment in Subsidiary

In the separate financial statements of NEM Insurance Plc, investment in subsidiary is accounted for at cost less
impairment.
The financial statements of subsidiaries are consolidated from the date the Group acquires control, up to the date
that such effective control ceases. For the purpose of these financial statements, subsidiaries are entities over
which the Group, directly or indirectly, has the power to govern the financial and operating policies so as to obtain
benefits from their activities. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are
accounted for as equity transactions (transactions with owners). Any difference between the amount by which the
non-controlling interest is adjusted and the fair value of the consideration paid or received is recognized directly in
equity and attributed to the Group.
Inter-company transactions, balances and unrealized gains on transactions between Companies within the Group
are eliminated on consolidation. Unrealized losses are also eliminated in the same manner as unrealized gains, but
only to the extent that there is no evidence of impairment.
On loss of control, the Group de-recognizes the assets and liabilities of the subsidiary, any controlling interests and
the other components of equity related to the subsidiary. Any surplus or deficit arising from the loss of control is
recognized in income statement.
If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date
that control is lost. Subsequently, that retained interest is accounted for as an equity-accounted investee or as fair
value through other comprehensive income financial asset depending on the level of influence retained.
2.9 Investment Properties

Properties that are held for long-term rental yields or for capital appreciation or both and that are insignificantly
occupied by the entities in the group are classified as investment properties. These properties consist of land and
buildings.
Recognition of investment properties takes place only when it is probable that the future economic benefits that are
associated with the investment property will flow to the entity and the cost can be measured reliably.
Investment properties are measured initially at cost, including transaction costs. The carrying amount includes the
cost of replacing parts of an existing investment property at the time the cost was incurred if the recognition criteria
are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition,
investment properties are stated at fair value, which reflects market condition at the date of the consolidated
statement of financial position.
Gains or losses arising from the changes in the fair value of investment properties are included in the consolidated
income statement in the year in which they arise. Subsequent expenditure is included in the assets carrying amount
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of
the item can be measured reliably. All other repairs and maintenance costs are charged to the consolidated income
statement during the financial period in which they are incurred. The fair value of investment property is based on
the nature, location and condition of the specific asset.
NEM Insurance Plc
Rent receivable is recognized in profit or loss and is spread on a straight-line basis over the period of the lease.
Where lease incentive, such as a rent free period is given to a Lessee, the carrying value of the related investment
property excludes any amount reported as a separate asset as a result of recognizing rental income on this basis.
2.10 Statutory Deposit

Statutory deposit represents 10% of the paid up capital of the Company deposited with the Central Bank of Nigeria
(CBN) in pursuant to Section 10(3) of the Insurance Act of Nigeria CAP I17, 2004. Statutory deposit is measured
at cost.
2.11 Intangible Assets

(i) Software
Software acquired by the Group is stated at cost less accumulated amortization and accumulated impairment losses.
Expenditure on internally developed software is recognized as an asset when the Group is able to demonstrate
its intention and ability to complete the development and use the software in a manner that will generate future
economic benefits and can reliably measure the costs to complete the development. Development costs previously
expensed cannot be capitalized. The capitalized costs of internally developed software include all costs attributable
to developing the software and capitalized borrowing costs and are amortized over its useful life. Subsequent
expenditure on software assets is capitalized only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is expensed as incurred. Amortization is recognized in profit
or loss on a straight-line basis over the estimated useful life of the software, from the date that it is available for use
since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in
the asset. The maximum useful life of software is five years. Amortization methods, useful lives and residual values
are reviewed at each financial year end and adjusted if appropriate.
(ii) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets of the
Company acquired at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less
accumulated impairment losses. Impairment losses in goodwill are not reversed.
2.12 Property, Plant and Equipment

(i) Recognition and measurement
Property, plant and equipment are initially recorded at cost. Land is subsequently carried at revalued amount being
the fair value at the date of revaluation, while buildings are subsequently carried at revalued amount being the
fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. Revaluations are made with sufficient regularity such that the carrying amount does not differ
materially from that which would be determined using fair value at the end of the reporting period. The Group
revalues its land and building every three years in line with relevant provisions of International Accounting Standard
(IAS) 16.
All other property, plant and equipment are stated at historical cost less depreciation. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Any increase in an asset’s carrying amount,
as a result of revaluation is credited to other comprehensive income and accumulated in Revaluation Surplus within
Revaluation reserves in equity. The increase is recognized in profit or loss to the extent that it reverses a decrease
of the same asset previously recognized in profit or loss.
(ii) Subsequent costs

The cost of replacing part of an item of property or equipment is recognized in the carrying amount of the item if it
is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be
NEM Insurance Plc
measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing
of property and equipment are recognized in profit or loss as incurred.
(iii) Depreciation
Depreciation is recognized in Profit or Loss and is provided on a straight-line basis over the estimated useful life of
the assets. Depreciation methods, estimated useful lives and residual values are reviewed annually and adjusted
when necessary. No depreciation is charged on property, plant and equipment until they are available for use. The
company recognizes full depreciation on the year of purchase and zero depreciation on the year of disposal. The
average useful lives per class of asset are as follows:
Assets class Average

useful life
Land Nil
Building under Construction Nil
Buildings 2%
Machinery and equipment 20%
Motor vehicles 20%
Furniture and fittings 20%
Computer equipment 20%
(iv) De-recognition
An item of property and equipment is derecognized on disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on de-recognition of the asset which is calculated as the difference
between the net disposal proceeds and the carrying amount of the asset is included in profit or loss in the year the
asset is derecognized.
2.13 Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys
the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets.
(i) Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets unless the title to the asset
transfers at the end of the lease term.
NEM Insurance Plc
(ii) Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including in-
substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The company separates the lease
components from the non-lease components before arriving at the lease liability. The lease payments also include
the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties
for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a
change in an index or rate used to determine such lease payments) or a change in the assessment of an option to
purchase the underlying asset.
2.14 Other Payables
Other payables are recognized initially at fair value and subsequently measured at amortized cost using the effective
interest method. The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date
of the liability is less than one year discounting is omitted.
2.15 Retirement Obligations And Employee Benefits
The Group operates the following contribution and benefit schemes for its employees:
(i) Defined benefit gratuity scheme
The Group has a defined benefit gratuity scheme for management and non-management staff. Under this scheme,
a specified amount as determined by actuarial valuation is contributed by the Group and charged to the income
statement over the service life of each employee.
Employees are entitled to gratuity after completing a minimum of five continuous full years of service. The gratuity
obligation is calculated annually by Independent Actuaries using the projected unit credit method. The present
value of the gratuity obligation is determined by discounting the estimated future cash outflows using market
yields on high quality corporate bonds (except where there is no deep market in such bonds, in which case the
discount rate is based on market yields on Government bonds). The liability recognized in the statement of financial
position in respect of defined benefit gratuity plan is the present value of the defined benefit obligation at the date
of the statement of the financial position less the fair value of plan assets. Actuarial gains or losses arising from the
valuation are credited or charged to Other Comprehensive Income (OCI) in the financial year in which they arise.
(ii) Defined contribution pension scheme
In line with the provisions of the Nigerian Pension Reform Act, 2014, the Group has instituted a defined contributory
pension scheme for its employees. The scheme is funded by fixed contributions from employees and the Group
at the rate of 8% by employees and 10% by the Group of basic salary, transport and housing allowances invested
outside the Group through Pension Fund Administrators (PFAs) of the employee’s choice. The Group has no further
payment obligations once the contributions have been paid. The contributions are recognized as employee benefit
expenses when they are due.
(iii) Short-term benefits

Wages, salaries, paid annual leave, bonuses and non-monetary benefits are recognized as employee benefit
expenses and paid in arrears when the associated services are rendered by the employees of the Group.
NEM Insurance Plc
2.16 INCOME TAX
Income tax expense comprises current and deferred tax
(i) Current income tax

Income tax payable is calculated on the basis of the applicable tax law in the respective jurisdiction and is recognized
as an expense for the period except to the extent that current tax related to items that are charged or credited in
other comprehensive income or directly to equity.
(ii) Deferred income tax

Deferred income tax is provided using liability method on temporary differences arising between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using
tax rates that have been enacted or substantially enacted by the date of the consolidated statement of financial
position and are expected to apply when the related deferred income tax asset is realized or the deferred income
tax liability is settled.
The principal temporary differences arise from depreciation of property, plant and equipment, revaluation of certain
financial assets and liabilities and in relation to acquisitions on the difference between the fair values of the net
assets acquired and their tax base.
However, deferred income tax is not recognized for:
(a) Temporary differences arising on the initial recognition of goodwill
(b) Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss.
(c) Temporary differences related to investments in subsidiaries to the extent that it is probable that they will not
reverse in the foreseeable future.
Deferred tax assets are recognized when it is probable that future taxable profit will be available against which these
temporary differences can be utilized.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities against
current tax assets, and they relate to taxes levied by the same tax authority on the same taxable entity or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realized simultaneously.
2.17 Share Capital and Premium

Ordinary shares are classified as equity when there is no obligation to transfer cash or other assets. Incremental
costs directly attributable to the issue of equity instruments are shown in equity as a deduction from the proceeds,
net of tax. Share premium accounts for the amount the Group raises in excess of par value.
2.18 Contingency Reserve

Contingency reserve is credited at the higher of 3% of total premiums during the year and 20% of net profit per year,
until it reaches the higher of the minimum paid up capital or 50% of net premium in accordance with Section 21 (2)
of the Insurance Act CAP I17, LFN 2004.
NEM Insurance Plc
2.19 Asset Revaluation Reserve
When the Group’s land and building are revalued by independent professional valuer, surpluses arising on the
revaluation of these assets are credited to the asset revaluation reserve account. When assets previously revalued
are disposed off, any revaluation surplus relating to the disposed assets is transferred to retained earnings.
2.20 Retained Earnings

This represents the accumulated profits of the company which are available for dividend distribution to the equity
shareholders of the Group.
2.21 Fvoci Reserve

FVOCI reserve comprises the cumulative net change in the fair value of the Group’s investments categorized as Fair
Value Through Other Comprehensive Income (FVTOCI). Net fair value movements are recycled to income statement
if an investment categorized as Amortized Cost is either derecognized or impaired.
2.22 Other Reserves - Employee Benefit Actuarial Surplus

Actuarial surplus/deficit on employee benefits represent changes in benefit obligation due to changes in actuarial
valuation assumptions or actual experience differing from experience. The gains/losses for the year, net of applicable
deferred tax assets/liability on employee benefit obligation, are recognized in other comprehensive income.
2.23 Foreign Currency Translation

(a) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entities operate (the ‘functional currency’). The consolidated financial
statements are presented in Nigerian Naira (N), which is the Group’s presentation currency.
(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-ends exchange rates of monetary assets and liabilities denominated in foreign
currencies are recognized in the statement of profit or loss.
Foreign exchange gains and losses relating to financial assets are presented in the income statement within ‘Net
foreign exchange gain’. All other foreign exchange gains and losses are presented in the income statement within
‘Other operating income’ or ‘ Other operating expenses’.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the
exchange rate at the reporting date. Groups of insurance and reinsurance contracts that generate cash flows in a
foreign currency are treated as monetary items.
Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the
functional currency at the exchange rate when the fair value is determined. Non-monetary items that are measured
based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
2.24 Investment Income

(a) Dividend income
Dividend income from equities is recognized when the right to receive payment is established, this is the ex-dividend
date for equity securities.
NEM Insurance Plc
(b) Interest income and expense
Interest income on financial assets that are classified as amortized cost and interest expense on financial liabilities
other than those at FVTPL are determined using the effective Interest rate method. Interest income is calculated by
applying the effective interest rate to the gross carrying amount of financial assets, except for financial assets that
have subsequently become credit-impaired (or stage 3), for which interest revenue is calculated by applying the
effective interest rate to their amortized cost (i.e. net of the expected credit loss provision). Interest income on assets
classified as amortized cost are recognized in investment income.
2.25 Management Expenses

Management expenses are expenses other than claims, investment expenses, employee benefit, expenses for
marketing and administration and underwriting expenses. They include rents, professional fee, depreciation
expenses and other non-operating expenses. Management expenses are accounted for on accrual basis and
recognized in the income statement upon utilization of the service or at the date of their origin.
2.26 Segment Reporting

An operating segment is a component of the Group that engages in business activities from which it can earn
and incur expenses, including revenues and expenses that relate to transaction with any of the Group’s other
components, whose revenues and operating results are reviewed regularly by Executive Management to make
decisions about the resources allocated to each segment and assess its performance, and for which discrete
financial information is available. All costs that are directly traceable to the operating segments are allocated to the
segment concerned while indirect costs are allocated based on the benefits derived from such costs.
2.27 Contingent Liabilities

Contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the Group or the Group has a present obligation as a result of past events which is not recognized because it is
not probable that an outflow of resources will be required to settle the obligation; or the amount cannot be reliably
estimated. Contingent liabilities normally comprise of legal claims under arbitration or court process in respect of
which a liability is not likely to crystallize.
2.28 Other Insurance Contract Liabilities

Other insurance contract liabilities refers to financial obligations arising from the group’s insurance business that are
basically outside the scope of the definition of insurance contracts. The group consistently evaluents these liabilities
and measures them at fair value at each reporting date.
2.30 IFRS 17-INSURANCE CONTRACTS ACCOUNTING POLICIES

2.31 Key types of insurance contracts issued, and reinsurance contracts held.
Non-Life Business - The Group issues non-life insurance to individuals and commercial businesses. Non-life insurance
products offered include Motor, Property, Marine & Aviation, Bond, Engineering, Oil and Gas, fire, Agriculture and
General Accident. These products offer financial protection to policyholder’s assets and indemnification of other
parties against financial loss prompted by the action of the policyholder.
The Group accounts for these contracts applying the principles underlying International Financial Reporting Standard
(IFRS17) Insurance Contracts and other relevant accounting standards issued by the International Accounting
Standards Board( IASB). The Group also holds appropriate types of reinsurance contracts to mitigate risk exposure,
including: proportional and non-proportional facultative arrangements.
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2.32 Definition and Classification of Insurance contracts
Products sold by the Group are classified as insurance contracts when the Group accepts significant insurance
risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely
affects the policyholder’s finances.
The Group’s accounting and financial assessment are made on a cohort basis and on a contract-by-contract basis
at the contract issue date. In making this assessment, the Group considers all its substantive rights and obligations,
whether they arise from contract, law or regulation.
The Group determines whether a contract contains significant insurance risk by assessing if an insured event
could cause the Group to pay to the policyholder additional amounts that are significant in any single scenario with
commercial substance even if the insured event is extremely unlikely or the expected present value of the contingent
cash flows is a small proportion of the expected present value of the remaining cash flows from the insurance
contract.
The Group does not issue any pure life insurance contracts or any life insurance contracts with direct participating
features or any contract of insurance with investment component. The Group issues only non-life(General Business)
insurance to individuals and commercial businesses.
2.33 Separating components from insurance and reinsurance contracts

The Group assesses its insurance and reinsurance products to determine whether they contain components which
must be accounted for under another applicable IFRS rather than IFRS 17 (distinct non- insurance components).
After separating any distinct components, the Group applies IFRS 17 to all remaining components of the (host)
insurance contract on a cohort basis right from initial recognition and subsequent recognition until expiration of
insurance service on the contract.
Currently, the Group’s products do not include distinct non insurance components such as investment components,
goods and services, embedded derivatives that require separation.
2.34 Level of aggregation

Under IFRS 17 the Group determines a granular grouping of individual contracts for the purpose of measuring
insurance contract liability and in the recognition of profitability. The Group identifies portfolios by aggregating
insurance contracts that are subject to similar risks and managed together. In grouping insurance contracts into
portfolios, the Group considers the similarity of risks rather than the specific labelling of product lines. The Group
has determined that all contracts within each product line, as defined for management purposes, have similar risks.
Therefore, when contracts are managed together, they represent a portfolio of contracts. The Group’s insurance
contracts portfolios are disaggregated into annual cohorts or cohorts of periods that are not more than one year
apart. Limiting groups to contracts issued within one year or less apart improves the transparency of profitability to
be reported in the Group’s set of financial statements.
Each portfolio is subdivided into groups of contracts to which the recognition and measurement requirements of
IFRS 17 are applied.
At initial recognition, the Group segregates contracts based on when they were issued. A cohort contains all
contracts that were issued within a 12-month period. Each cohort is then further disaggregated into three groups
of contracts:
•• Contracts that are onerous on initial recognition
•• Contracts that, on initial recognition, have no significant possibility of becoming onerous subsequently
•• Any remaining contracts
NEM Insurance Plc
For short term contracts accounted for applying the Premium Allocation Approach (PAA), the Group determines that
its contracts are not onerous on initial recognition, unless there are facts and circumstances indicating otherwise.
As IFRS 17 does not define what “facts/circumstances” entail; the following are considered on their impact on
expected cashflows and resulting profitability:
•• Significant changes in external conditions including economic or regulatory changes.
•• Changes to the organization or processes
•• Changes in underwriting and pricing strategies
•• Trends in experience and expected variability in cashflows
All the Group’s short-term contracts currently held have been assessed as having no possibility of becoming
onerous except for the motor portfolio (onerous in 2023). In subsequent periods, non-onerous contracts are re-
assessed based on the likelihood of prevailing facts and circumstances leading to significant possibility of becoming
onerous.
2.35 Reinsurance contracts held

Reinsurance contracts held(loss-occurring reinsurance contracts) are for one year or less. For Risk-attaching
reinsurance contracts, the Group reasonably expects that the resulting measurement of the assets for remaining
coverage would not differ materially from the result of applying the accounting policies that are the same as the
underlying the measurement model for the insurance contracts they protect. Reinsurance contracts are assessed
for aggregation on an individual contract basis and are assessed separately from insurance contracts. The smallest
unit of account is a reinsurance contract, even where this contract covers more than one type of insurance product.
However, there are cases where a reinsurance contract covers separate and identifiable product lines which are
only included in the same legal document for administrative convenience. These contracts have been separated
into its different components.
2.36 Recognition of Insurance contracts

An insurance contract issued by the Group is recognised from the earliest of:
•• the beginning of its coverage period (i.e. the period during which the Group provides services in respect of any
premiums within the boundary of the contract);
•• when the first payment from the policyholder becomes due or, if there is no contractual due date, when it is
received from the policyholder; and
•• when facts and circumstances indicate that the contract is onerous.
An insurance contract acquired in a transfer of contracts or a business combination is recognised on the date of
acquisition.
As the Group adheres to the statutory “no premium no cover”, the date premium is received from the policyholder
will always be earlier or on the same date as the coverage period. This premium receipt date would then be used
to separate the groups of insurance contracts into annual cohorts. The contract groupings shall not be reassessed
until they are derecognized.
2.37 Contract Boundaries

The Group includes in the measurement of a group of insurance contracts all the future cash flows within the
boundary of each contract in the group. Cash flows are within the boundary of an insurance contract if they arise
from substantive rights and obligations that exist during the reporting period in which the Group can compel the
policyholder to pay the premiums, or in which the Group has a substantive obligation to provide the policyholder
with insurance contract services. A substantive obligation to provide insurance contract services ends when:
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•• he Group has the practical ability to reassess the risks of the particular policyholder and, as a result, can set
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a price or level of benefits that fully reflects those risks Or;
Both of the following criteria are satisfied:
•• he Group has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the
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contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio.
•• he pricing of the premiums up to the date when the risks are reassessed does not take into account the risks
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that relate to periods after the reassessment date.
A liability or asset relating to expected premiums or claims outside the boundary of the insurance contract are not
recognized. Such amounts relate to future insurance contracts.
2.38 Measurement of insurance contracts issued.

(a) Initial Measurement-Premium Allocation Approach (PAA)
At initial recognition, the Group measures the carrying amount of the liability for remaining coverage (LRC) as
the premiums received on initial recognition minus any insurance acquisition cashflows allocated to the group of
contracts at that date, and adjusted for any amount arising from derecognition of any assets or liabilities previously
recognized for cash flows related to the group(including assets for insurance acquisition cashflows). The Group
has not chosen to expense insurance acquisition cashflows when they are incurred. Subsequently , the carrying
amount of the LRC is increased by any premiums received and the amortization of insurance acquisition cashflows
recognized as expenses and decreased by amount recognized as insurance revenue for services provided and any
additional insurance acquisition cashflows allocated after initial recognition. On initial recognition the Group expects
that the time between providing part of the services and the related premium due date is not more than a year.
(b) Subsequent Measurement-Premium Allocation Approach (PAA)

In estimating the total future fulfilment cash flows, the Group distinguishes between those relating to already
incurred claims and those relating to future service. At the end of each reporting period, the carrying amount of the
group of insurance contracts will reflect a current estimate of the liability for remaining coverage (LRC) as at that
date and a current estimate of the liability for incurred claims (LIC).
(i) Liability for Remaining Coverage

The LRC represents the Group’s obligation to investigate and pay valid claims under existing contracts for insured
events that have not yet occurred, amounts that relate to other insurance contract services not yet provided (i.e.
provision of investment-return and investment-related services) and investment components and other amounts
not related to insurance contract services that have not yet been transferred to the LIC.
When applying the PAA, the Group does not discount the liability for remaining coverage to reflect the time value
of money and financial risk for its non-life policies with a coverage period of one year or less.
The Group measures the liability for remaining coverage at each subsequent reporting date as follows: Sum of:
(a) Previous carrying amount,
(b) Premium received in the period
(c) Amortization of insurance acquisition cashflows
Less:
(d) Capitalized insurance acquisition cashflows
(e) insurance revenue recognized and
(f) investment paid or transferred to the liability for incurred claims
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(ii) Liability for Incurred claims (LIC)
The LIC includes the Group’s liability to pay valid claims for insured events that have already incurred, other incurred
insurance expenses arising from past coverage service and the liability for claims incurred but not yet reported. It
also includes the Group’s liability to pay amounts the Group is obliged to pay the policyholder under the contract.
This includes repayment of investment components, when a contract is derecognized. The current estimate of LIC
comprises the fulfilment cash flows related to current and past service allocated to the group at the reporting date.
For those claims that the Group expects to be paid within one year or less from the date of occurrence, the Group
does not adjust future cash flows for the time value of money and the effects of financial risks. However, claims
expected to take more than one year to settle are discounted applying the discount rate at the time the incurred
claim is initially recognized.
2.39 Discount Rate

In line with IFRS17(59) (B), IAS8(36) the Group adjusts the measurement of the liability for incurred claims(LIC) for
the impact of the time value of money and other financial risk of the claims not settled within 12 months, time value
of money is measured separately from expected future cash flows with changes in financial risks recognized in
profit or loss at the end of each reporting period and the Group has elected an accounting policy to present the time
value of money separately in profit or loss and other comprehensive income. The Group measures the time value of
money using discount rates that reflect the liquidity characteristics of the insurance contracts and the characteristics
of the cash flows, consistent with observable current market prices. They exclude the effect of factors that influence
such observable market prices but do not affect the future cash flows of the insurance contracts (e.g., credit risk).
For all insurance contracts the Group agrees to adopt the Premium allocation approach in which determined
interest rate (locked in rate) is used to calculate the present value of future cashflows at the date of initial recognition
of the group of insurance contracts in line with IFRS17 Para B72b. The locked -in interest rates is used for accreting
interest rate accruing on the value of the contracts at initial recognition and loss components changes as a result
of changes in Fulfilment Cashflow(FCF) that relate to future years service.
To derive the current discount rates which are judged to be used for the contracts cashflows, the Group uses
discount rates starting from a risk-free rate of assets(high quality bonds) with similar characteristics as the underlining
liability cashflows plus an illiquidity premium where applicable. Risk free rates are determined by reference to the
yields of highly liquid FGN Bonds.
Average fixed locked-in rate is used for the group of insurance contracts issued over the 12 months cohort period,
where the average fixed locked in rate is taken to be the simple arithmetic mean or geometric mean. The illiquidity
premium is determined by reference to observable market rates, including sovereign debt, corporate debt and
market swap rates. The Group shall adopt the Nigeria Actuarial Society committee discount rates as published on
its website or on the NAICOM website whenever available.
2.40 Risk adjustment(RA) for non-financial risk

The risk adjustment measures the compensation the Group would require for bearing the uncertainty about the
amount and timing of cash flows arising from insurance contracts, other than those relating to financial risk. The
Group chooses a technique which aligns with the principles of risk adjustment and disclose significant judgement
which has been made in determining the risk adjustment and the equivalent confidence level utilized. The group
has service level agreements that enhances prompt claim settlement except when circumstances warranted such
delay. Amount recoverable from risk adjustment is recognized in the financial statement.
For the purposes of the financials, a bootstrap approach was adopted in determining the risk adjustment margin.
A confidence level of the 75th percentile was adopted to be 7.94%.
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2.41 PAA Eligibility Calculation and Materiality
The Group determine that its businesses satisfies the criteria for adopting the use of the simplified measurement
model(PAA) as follows:
(a) That such simplification would produce a measurement of the liability for remaining coverage that would not
differ materially from that produced applying the General Model; or
(b) That the coverage period of each contract in the group is one year or less.
In determining the level of materiality, the Group has taken a view that if the total volume of premiums in a cohort of
contracts with coverage period of more than one year is less than 10%, then this would be deemed as immaterial to
the justification of using the implied measurement model PAA- statistically insignificant in line with paragraph 5.2.2
of Guidance note on IFRS17 issued by NAICOM.
The Group has opted to test the PAA eligibility for the entire group (population) of contracts instead of just a sample
within the population of insurance contracts, using a quantitative assessment approach involving application of
simplified mathematical approach.
Based on quanitative assessment carried out by the group, the portion that is above one year based on volume
of premium is 0.63%, 0.40% and 0.62% for 2021, 2022 and 2023 respectively, while the portion above 365 days
based on policy count is 0.46%, 0.93% and 0.70% for 2021, 2022 and 2023 respectively, and the group considers
these to be immaterial as to significantly impact the result of the premium allocation approach.
2.42 Insurance acquisition cash flows

The Group chooses to amortize acquisition cashflows over the contracts’ coverage period, provided that the
coverage period of each contract in the group at initial recognition is no more than one year. The Group includes
insurance acquisition cash flows in the measurement of a group of insurance contracts if they are directly attributable
to either the individual contracts in a group, the group itself or the portfolio of insurance contracts to which the
group belongs.
The Group estimates, at a portfolio level, insurance acquisition cash flows not directly attributable to the group
but directly attributable to the portfolio. The Group then allocates them to the group of newly written and renewed
contracts on a systematic and rational basis.
The Group applies judgement in determining the inputs used in the methodology to systematically and rationally
allocate insurance acquisition cash flows to groups of insurance contracts. This includes judgements about whether
insurance contracts are expected to arise from renewals of existing insurance contracts and, where applicable,
the amount to be allocated to groups including future renewals and the volume of expected renewals from new
contracts issued in the period.
In the current and prior years, the Group did not allocate any insurance acquisition cash flows to future groups of
insurance contracts, as it did not expect any renewal contracts to arise from new contracts issued in the period.
In the current and prior year, the Group did not identify any facts and circumstances indicating that the assets may
be impaired.
2.43 Changes in fulfilment cash flows

At the end of each reporting period, the Group updates the fulfilment cash flows for both LIC and LRC to reflect the
current estimates of the amounts, timing and uncertainty of future cash flows, as well as discount rates and other
financial variable.
NEM Insurance Plc
The Group has an accounting policy choice which calculates changes in fulfilment cash flows at the end of a
reporting period for changes in non-financial assumptions, changes in discount rates and financial assumptions.
The Group first calculates the changes in discount rates and financial assumptions on the fulfilment cash flows (as
expected at the beginning of the period) and then calculate changes on those cash flows from the change in non-
financial assumptions.
Experience adjustments are the difference between:
•• The expected cash flow estimates at the beginning of the period and the actual cash flows for premiums re-
ceived in the period (and any related cash flows paid such as insurance acquisition cash flows and insurance
premium taxes)
•• he expected cash flow estimates at the beginning of the period and the actual incurred amounts of insurance
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service expenses in the period (excluding insurance acquisition expenses).
Experience adjustments relating to current or past service are recognized in profit or loss. For incurred claims
(including incurred but not reported) and other incurred insurance service expenses, experience adjustments
always relate to current or past service. They are included in profit or loss as part of insurance service expenses.
2.44 Onerous Contracts
If at any time during the coverage period, facts and circumstances indicate that a group of insurance contracts
is onerous, then the Group determines the loss component and recognizes the loss immediately. The Group
considers an insurance contract to be onerous if the expected fulfilment cash flows allocated to the contract, less
any previously recognized acquisition cash flows and any cash flows arising from the contract at the date of initial
recognition in total result in a net cash outflow.
The Group conducts the onerousity assessment on a portfolio level by assessing future expected cash flows on a
probability-weighted basis including a risk adjustment for non-financial risk. Contracts expected on initial recognition
to be loss-making are grouped together and such groups are measured and presented separately. Once contracts
are allocated to a group, they are not re-allocated to another group, unless they are substantively modified.
For contracts that are measured under PAA, the assumption is that there are no onerous contracts at initial
recognition, unless facts and circumstances indicate otherwise. If the measurement of the LIC results in a loss-
making group, this does not translate to the LRC being onerous. In this case, the group will be assessed as to
whether its LRC will be similar to the incurred experience and hence considered to be onerous. For example,
actions taken to improve profitability on the motor portfolio which is loss-making (in 2023) may indicate that the LRC
will have a different loss experience.
If facts and circumstances indicate that a group of contracts is onerous during the coverage period, the onerous
liability is calculated as the difference between:
(a) the carrying amount of the liability for remaining coverage; and
(b) the FCF that relates to remaining coverage similar to what is needed under the GMM.
This difference is recognized as a loss and shall increase the liability for remaining coverage.
2.45 Measurement of Reinsurance Contracts Held

(a) Recognition
Proportional reinsurance contracts held will be first recognized on the later of the beginning of the coverage period
of the reinsurance contract or the date that the first underlying insurance contract in the treaty is initially recognized.
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For example, if we enter a surplus fire reinsurance contract on 1 January 2022 and the first fire insurance policy
in the treaty is written in February 2022, then the date of recognition of the surplus reinsurance contract will be
February 2022. Though the contract agreement is in place in January, cashflows on the contract don’t start until
February.
Non-Proportionate reinsurance coverage will be recognized at the beginning of the coverage period of the contract.
(b) Reinsurance contracts held measured under the PAA.

The Group applies the same accounting policies to measure its group of reinsurance contracts ,adapted where
necessary to reflect features that differ from those of insurance contracts. Reinsurance contracts held are generally
assets, rather than liabilities. They are separate from underlying insurance contracts; however, they correspond with
them. To ensure that the impact of reinsurance is smoothened out over the period of the underlying contracts, the
Group has a policy to recognizing reinsurance contract held over the coverage period as each underlying contract
is recognized. If a loss-recovery component is created for a group of reinsurance contracts measured under the
PAA, then the Group adjusts the carrying amount of asset for remaining coverage. All reinsurance contracts with
contract boundaries not exceeding one year are automatically considered to meet PAA eligibility. Most of the
Group’s Surplus reinsurance contracts are immediately eligible for PAA as they are written on a clean-cut basis.
At the end of the period, the reinsurer withdraws from the contract and the reinsurance held portfolio (including
outstanding recoveries and ceded portion of unexpired premiums) is transferred to a new reinsurer.
A smaller number of surplus reinsurance contracts and all Facultative contracts are written on an underwriting year
basis. This basis extends the contract boundary beyond one year as coverage of contracts ceded to the treaty may
continue even after the underwriting year has ended.
The Group incurs incremental administrative costs that are insurance services expenses, namely cashflows
that relate directly to the fulfilment of the underlying insurance contracts issued and are to be included in the
measurement of the reinsurance contracts assets. The Group treats the actual incurred cost as insurance service
expense. Where the reinsurance contracts held covers a group of onerous underlying insurance contracts, the
Group adjusts the carrying amount of the asset for remaining coverage and recognizes a gain when, in the same
period, it reports a loss on initial recognition of an onerous group of underlying insurance contracts or on addition
of onerous underlying insurance contracts to a group. The recognition of this gain results in the recognition for the
loss recovery component of the asset for the remaining coverage of a group of reinsurance contracts held.
(c) Methods of Presenting Reinsurance Premiums and Recoveries from Reinsurance Contracts Held
For reinsurance contracts held, inline with IFRS 17.86, the group has an accounting policy of presenting income or
expenses from reinsurance contracts held (other than insurance finance income or expenses) as separate amounts:
the amounts recovered from the reinsurer and allocation of the premiums paid. Both the recovered amount and
the allocated premiums paid together should give a net amount equal to the equivalent single amount option. The
allocation of premium paid is not used as a reduction to premium revenue for the reinsurance contracts held.
(d) Accounting for Fixed Commissions by the Reinsurer

The Group treats ceding commission that are not contingent on claims as a reduction in premiums. Reinsurance
Contracts may included fixed ceding commission payable to the Group.
2.46 Modification and Derecognition

The Group derecognizes the original contract and recognizes the modified contract as a new contract, if the terms
of insurance contracts are modified and the following conditions are met:
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If the modified terms were included at contract inception and the Group would have concluded that the modified
contract:
•• Is outside of the scope of IFRS 17
•• Results in a different insurance contract due to separating components from the host contract
•• Results in a substantially different contract boundary
•• Would be included in a different group of contracts.
•• The original contract met the definition of an insurance contract with direct participating features, but the mod-
ified contract no longer meets the definition.
•• The original contract was accounted for applying the PAA, but the modified contract no longer meets the PAA
eligibility criteria for that approach.
If the contract modification meets any of the conditions, the company performs all assessments applicable at initial
recognition, derecognizes the original contract and recognizes the new modified contract as if it was entered for
the first time.
If the contract modification does not meet any of the conditions, the Group treats the effect of the modification as
changes in the estimates of fulfilment cash flows.
For insurance contracts accounted for using the PAA, the Group adjusts insurance revenue prospectively from the
time of the contract modification.
The Group derecognizes an insurance contract when, and only when the contract is:
•• Extinguished (when the obligation specified in the insurance contract expires or is discharged or cancelled)
•• Modified and the derecognition criteria are met.
When the Group derecognizes an insurance contract from within a group of contracts, it:
•• djusts the fulfilment cash flows allocated to the group to eliminate the present value of the future cash flows
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and risk adjustment for non-financial risk relating to the rights and obligations that have been derecognized
from the group.
When the Group transfers an insurance contract to a third party and that results in derecognition, the Group adjusts
the CSM of the group from which the contract has been derecognized for the difference between the change in the
carrying amount of the group caused by the derecognized fulfilment cash flows and the premium charged by the
third party for the transfer.
When the Group derecognizes an insurance contract due to modification, it derecognizes the original insurance
contract and recognizes a new one.
2.47 Presentation
The Group has presented separately in the Group’s statement of financial position the carrying amount of portfolios
of insurance contracts that are assets and those that are liabilities, and the portfolios of reinsurance contracts held
that are assets and those that are liabilities.
The Group disaggregates the amounts recognized in the consolidated statement of profit or loss and other
comprehensive income into an insurance service result sub-total that comprises insurance revenue and insurance
service expenses and, separately from the insurance service result, the ‘net insurance finance income or expenses’
sub-total. The Group has voluntarily included the net insurance finance income or expenses line in another sub-
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total: net insurance and investment result, which also includes the income from all the assets backing the Group’s
insurance liabilities.
The Group includes any assets for insurance acquisition cash flows recognized before the corresponding groups of
insurance contracts are recognized in the carrying amount of the related portfolios of insurance contracts issued.
2.48 Insurance Revenue

When applying the PAA, the Group recognizes insurance revenue for the period based on the passage of time by
allocating expected premium receipts including premium experience adjustments to each period of service.
At the end of each reporting period, the Group considers whether there was a change in facts and circumstances
indicating a need to change, on a prospective basis, the premium receipt allocation due to changes in the expected
pattern of claim occurrence.
2.49 Insurance service expenses

Insurance service expenses arising from insurance contracts issued are recognized in the profit or loss generally as
they are incurred. The company’s insurance expenses comprises:
•• Incurred claims and other insurance service expenses Changes in the LIC related to claims and expenses
incurred in the period excluding repayment of investment components.(if any)
•• Changes in the LIC related to claims and expenses incurred in prior periods (related to past service)
•• Other directly attributable insurance service expenses incurred in the period. This includes technical salaries
and wages and 30% of other administrative expenses.
•• Amortization of insurance acquisition cash flows, which is recognized at the same amount in both insurance
service expenses and insurance contract revenue.
•• Loss component of onerous groups of contracts initially recognized in the period.
2.50 Net expenses from reinsurance contracts held.

The Group presents income or expenses from a group of reinsurance contracts held and reinsurance finance
income or expenses in profit or loss for the period separately. Income or expenses from reinsurance contracts held
are split into the following two amounts:
•• Amount recovered from reinsurers.

•• An allocation of the premiums paid.
The Group presents cash flows that are contingent on claims as part of the amount recovered from reinsurers.
Ceding commissions that are not contingent on claims of the underlying contracts are presented as a deduction in
the premiums to be paid to the reinsurer which is then allocated to profit or loss.
The Group establishes a loss recovery component of the asset for the remaining coverage for a group of reinsurance
contracts held. This depicts the recovery of losses recognized on the initial recognition of an onerous group of
underlying insurance contracts or on addition of onerous underlying insurance contracts to a group.The loss
recovery component is then adjusted to reflect:
•• eversals of loss recovery component to the extent those reversals are not changes in the fulfilment cash flows
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of the group of reinsurance contracts held.
•• Allocations of the loss recovery component against the amounts recovered from reinsurers reported in line with
the associated reinsured incurred claims or expenses.
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2.51 Insurance finance income and expenses
Insurance finance income or expenses present the effect of the time value of money and the change in the time
value of money, together with the effect of financial risk and changes in financial risk of a group of insurance
contracts and a group of reinsurance contracts held.
2.52 The presentation for insurance finance income and expenses

The Group has an accounting policy choice to present all the period’s insurance finance income or expenses in
profit or loss or to split the amount between profit or loss and other comprehensive income (OCI). When considering
the choice of presentation of insurance finance income or expenses, the Group examines the assets held for that
portfolio and how they are accounted for.
Currently the Group present all the period’s insurance finance income or expenses in the profit or loss. The Group
does not write participating contracts and does need to reassess its accounting policy choice in respect of such
policies.
2.53 Transition policy

The Group shall apply IFRS 17 retrospectively using the full retrospective approach.
On transition to IFRS 17, the Group applied the full retrospective approach unless impracticable to do so in which
it applied the modified retrospective approach.
At 1 January 2022 group of risk on transition to IFRS 17 are identified and measured with the following
approaches:
Transition approach Year of issue

All groups of insurance and Reinsurance contracts - Full retrospective approach was adopted 2021 - 2022
All groups of Insurance and Reinsurance contracts for which the full retrospective approach was Prior to 2021
impracticable - modified retrospective approach was adopted
Transition approach Year of issue

All groups of insurance and Reinsurance contracts - Full retrospective approach was adopted 2021 - 2022
All groups of Insurance and Reinsurance contracts for which the full retrospective approach was impracticable -
modified retrospective approach was adopted Prior to 2021
The Group has applied the full retrospective approach on transition to all short-term insurance contracts in force
at the transition date.
To do this, at the transition date, we have identified, recognized and measured each group of insurance contracts
as if IFRS 17 had always applied; and derecognized any existing balances that would not exist had IFRS 17 always
applied; and finally recognized any resulting net difference in equity.
The modified retrospective approach entails that the group has tried its best to achieve the closest outcome to
full retrospective application possible using reasonable and supportable information available without undue cost
or effort. Accordingly, in adopting this approach, the entity has used reasonable and supportable information. The
group has maximized the use of information that would have been used to apply a fully retrospective approach, but
has only used information available to the group without undue cost or effort.
(a) Contracts existing at transition date.
On transition date, 1 January 2023, the Group:
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•• as identified, recognized and measured each group of insurance contracts as if IFRS 17 had always applied
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(unless impracticable).
•• Has identified, recognized and measured assets for insurance acquisition cash flows as if IFRS 17 had always
applied. However, no recoverability assessment was performed before the transition date. At transition date, a
recoverability assessment was performed, and no impairment loss was identified.
•• Derecognized any existing balances that would not exist had IFRS 17 always applied.
•• Recognized any resulting net difference in equity.
In determining the appropriate transition approach, the following were considered:
•• the coverage period of the in-force policies

•• the availability of historical data and assumptions driving measurement and the ability to obtain these without
undue cost and effort.
(b) Transition adjustments
The group has adopted IFRS 17 Insurance contracts from 1 January 2023 and comparatives have been
retrospectively restated from the transition date of 1 January 2022. A restated opening statement of financial
position and statement of comprehensive income have been included to reflect the transition from IFRS 4 to IFRS
17 and to indicate the impact of the adoption on the group’s financials.
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IFRS 17 Transition Adjustment For

Statement Of Financial Position
As At 1 January 2022 (Group)
2022 2022
Reclassi- Remea-
Notes IFRS 4 fication surement IFRS 17
N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 7,895,469 - - 7,895,469
Financial assets - -
- At fair value through profit or loss 5,354,017 - - 5,354,017
- At fair value through other comprehensive income 84,884 - - 84,884
- At amortised cost 8,143,491 - - 8,143,491
Trade receivables 1,479,056 - - 1,479,056
Insurance contract Assets a - - - -
Reinsurance assets b(c) 7,565,820 (7,565,820) - -
Reinsurance Contract assets c(b,e,n) - 7,204,110 224,461 7,428,571
Deferred acquisition costs f(h) 1,030,753 (1,030,753) - -
Other receivables and prepayments 414,712 - - 414,712
Investment in Subsidiary - - - -
Investment properties 1,706,167 - - 1,706,167
Statutory deposit 320,000 - - 320,000
Intangible asset 10 - - 10
Property, Plant and Equipment 3,794,957 - - 3,794,957
Right-of-use Assets 209,920 - - 209,920
Deferred tax assets 257,505 - - 257,505
Total Assets 38,256,761 (1,392,463) 224,461 37,088,759
Liabilities
Insurance contract liabilities g(h) 12,217,843 (12,217,843) - -
Insurance contract liabilities h(g,f,o,j) - 11,187,090 370,552 11,557,642
Reinsurance contract liabilities d - - - -
Other Insurance contract liability l(m) - 410,728 - 410,728
Trade payables m(l) 410,728 (410,728) - -
Other payables n(c) 1,893,238 (361,710) - 1,531,528
Lease liabilities 139,623 - - 139,623
Retirement benefit obligations 52,414 - - 52,414
Income tax liability 623,508 - - 623,508
Deferred tax liabilities 10,387 - - 10,387
Total Liabilities 15,347,741 (1,392,463) 370,552 14,325,830
Share capital 5,016,477 - - 5,016,477

Statutory contingency reserve 6,098,784 - - 6,098,784
Retained earnings o(e,h,j) 9,649,912 - (146,091) 9,503,821
FVOCI reserve (36,612) - - (36,612)
Asset revaluation reserve 2,107,964 - - 2,107,964
Other Reserves - gratuity 72,495 - - 72,495
Total Equity 22,909,020 - (146,091) 22,762,929
Total Equity and Liabilities 38,256,761 (1,392,463) 224,461 37,088,759
NEM Insurance Plc

As At 1 January 2022 (Parent)
2022 2022
Reclassi- Remea-
N’000 N’000 N’000 N’000
Assets
Financial assets - -
Trade receivables 1,479,056 - - 1,479,056
Insurance contract Assets a - - - -
Reinsurance Contract assets c(b,e,n) - 7,204,110 224,461 7,428,571
Investment in Associate Regency NEM - - - -
Investment in Subsidiary 150,000 - - 150,000
Intangible asset 10 - - 10
Total Assets 38,187,605 (1,392,463) 224,461 37,019,603
Liabilities
Share capital 5,016,477 - - 5,016,477

FVOCI reserve (36,612) - - (36,612)
Total Equity 22,877,060 - (146,091) 22,730,969
NEM Insurance Plc

As At 31 December 2022 (Group)
2022 2022
Reclassi- Remea-
N’000 N’000 N’000 N’000
Assets
Financial assets
Trade receivables 672,356 - - 672,356
Insurance contract Assets a - - -
Reinsurance contract assets c(b,e,n) 9,180,930 291,773 9,472,703
Investment in Subsidiary - - - -
Intangible asset 15,721 - - 15,721
Total Assets 45,888,266 (1,978,559) 291,773 44,201,480
Liabilities
Share capital 5,016,477 - - 5,016,477

FVOCI reserve (67,765) - - (67,765)
Total Equity 27,199,950 - (184,291) 27,015,659
NEM Insurance Plc

As At 31 December 2022 (Parent)
2022 2022
Reclassi- Remea-
N’000 N’000 N’000 N’000
Assets
Financial assets
Trade receivables 672,356 - - 672,356
Insurance contract Assets a - - -
Reinsurance contract assets c(b,e,n) 9,180,930 291,773 9,472,703
Investment in Associate Regency NEM - - - -
Investment in Subsidiary 150,000 - - 150,000
Intangible asset 15,721 - - 15,721
Total Assets 45,849,532 (1,978,559) 291,773 44,162,746
Liabilities
Share capital 5,016,477 - - 5,016,477

FVOCI reserve (67,765) - - (67,765)
Total Equity 27,167,422 - (184,291) 26,983,131
NEM Insurance Plc
IFRS 17 Transition Adjustment For Statement Of

Profit Or Loss And Other Comprehensive
Income For The Year Ended 31 December 2022 (Group)
IFRS 4 IFRS 17
Reclassifi- Remea-
Notes 2022 cation surement 2022
N’000 N’000 N’000 N’000
Insurance Revenue q(r,w,d) - 31,433,600 - 31,433,600

Gross premiums written 33,369,050 (33,369,050) - -
Increase in unearned premium (1,935,450) 1,935,450 - -
Gross premium income r(q) 31,433,600 (31,433,600) - -
Insurance service expenses u(v,w,j) - (22,588,323) (105,512) (22,693,835)
Net expenses on reinsurance contracts s(t,v,r,e) - (2,547,987) 67,312 (2,480,675)
Reinsurance expenses (9,283,442) 9,283,442 - -
Net premium income 22,150,158 (22,150,158) - -
Fees and commission income t(u) 1,562,242 (1,562,242) - -
Net underwriting income 23,712,400 (23,712,400) - -
Claims expenses v(u) (7,647,470) 7,647,470 - -
Underwriting expenses w(q,u) (9,856,218) 9,856,218 - -
Underwriting profit 6,208,712 (6,208,712) - -
Insurance Service Result - - - 6,259,090
Interest revenue calculated using the effective interest method z(y) 1,085,092 - - 1,085,092
Dividend Income i(y) 470,062 - - 470,062
Net foreign exchange gain p(k) 297,149 - - 297,149
Net Fair value gain 174,088 - - 174,088
Net credit impairment loss (x) (18,927) - - (18,927)
Net Investment result - - 2,007,464
Insurance finance expenses from insurance contracts issued ab(v) (225,554) - (225,554)
Insurance finance Income from insurance contracts issued aa(v) 136,976 - 136,976
Net Insurance finance expenses - - (88,578)
Net Insurance and Investment result k(p) - - 8,177,976
Other operating income 1,081,234 - - 1,081,234
Loss on disposal of property, plant and equipment (36,425) - - (36,425)
Management expenses (3,724,696) - - (3,724,696)
Finance cost - - - -
Profit before NITDA and taxation 5,536,289 - (38,200) 5,498,089
Information Technology Development Levy (54,792) - - (54,792)
Profit before taxation 5,481,497 - - 5,443,297
Income taxes (41,875) - - (41,875)
Profit for the year after tax 5,439,622 - - 5,401,422
Other comprehensive income:
Items within OCI that may be reclassified to the Profit or loss:
Actuarial loss change in assumption (72) - - (72)
Actuarial loss - experience adjustment (20,542) - - (20,542)
Deferred tax 6,700 - - 6,700
Gain on FVTOCI (31,153) - - (31,153)
Items within OCI that will not be reclassified to the Profit or loss:
Gain on revaluation of land and buildings - - - -
Deferred tax - - - -
Total other comprehensive loss for the year (45,067) - - (45,067)
Total comprehensive income for the year 5,394,555 - - 5,356,355
Basic earnings per share (Kobo) 108 108
Diluted earnings per shares (Kobo) 108 108
NEM Insurance Plc
IFRS 17 Transition Adjustment For Statement Of

Income For The Year Ended 31 December 2022 (Parent)
IFRS 4 IFRS 17
Reclassifi- Remea-
Notes 2022 cation surement 2022
N’000 N’000 N’000 N’000
Insurance Revenue q(r,w,d) - 31,433,600 - 31,433,600

Gross premiums written 33,369,050 (33,369,050) - -
Increase in unearned premium (1,935,450) 1,935,450 - -
Gross premium income r(q) 31,433,600 (31,433,600) - -
Insurance service expenses u(v,w,j) - (22,588,323) (105,512) (22,693,835)
Net expenses on reinsurance contracts s(t,v,r,e) - (2,547,987) 67,312 (2,480,675)
Reinsurance expenses (9,283,442) 9,283,442 - -
Net premium income 22,150,158 (22,150,158) - -
Fees and commission income t(u) 1,562,242 (1,562,242) - -
Net underwriting income 23,712,400 (23,712,400) - -
Claims expenses v(u,aa,ab) (7,647,470) 7,647,470 - -
Underwriting expenses w(q,u) (9,856,218) 9,856,218 - -
Underwriting profit 6,208,712 (6,208,712) - -
Insurance Service Result - - - 6,259,090
Interest revenue calculated using the effective interest method z(y) 1,085,092 - - 1,085,092
Dividend Income i(y) 470,062 - - 470,062
Net foreign exchange gain p(k) 297,149 - - 297,149
Net Fair value gain 174,088 - - 174,088
Net credit impairment loss (x) (18,927) - - (18,927)
Net Investment result - - 2,007,464
Insurance finance expenses from insurance contracts issued ab(v) (225,554) - (225,554)
Insurance finance Income from insurance contracts issued aa(v) 136,976 - 136,976
Net Insurance finance expenses - - (88,578)
Net Insurance and Investment result - - 8,177,976
Other operating income k(p) 1,027,743 - - 1,027,743
Loss on disposal of property, plant and equipment (36,425) - - (36,425)
Management expenses (3,673,499) - - (3,673,499)
Finance cost - - - -
Profit before NITDA and taxation 5,533,995 - (38,200) 5,495,795
Information Technology Development Levy (54,792) - - (54,792)
Profit before taxation 5,479,203 - - 5,441,003
Income taxes (40,149) - - (40,149)
Profit for the year after tax 5,439,054 - - 5,400,854
Actuarial loss-change in assumption (72) - - (72)
Actuarial loss - experience adjustment (20,542) - - (20,542)
Deferred tax 6,700 - - 6,700
Gain on FVTOCI (31,153) - - (31,153)
Items within OCI that will not be reclassified to the Profit or loss:
Gain on revaluation of land and buildings - - - -
Deferred tax - - - -
Total other comprehensive loss for the year (45,067) - - (45,067)
Total comprehensive income for the year 5,393,987 - - 5,355,787
Basic earnings per share (Kobo) 108 108
Diluted earnings per shares (Kobo) 108 108
NEM Insurance Plc
Notes To The Transition Adjustment
Note Group Parent

31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
a Insurance Contract assets N’000 N’000 N’000 N’000
Balance as at (IFRS 4) - - - -
Remeasurement - - - -
Balance as per (IFRS 17) - - - -
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
b Reinsurance assets (IFRS 4) N’000 N’000 N’000 N’000
Balance as at (IFRS 4) 9,712,498 7,565,820 9,712,498 7,565,820

Reinsurance share of UPR reclassified to
(2,374,961) (1,583,477) (2,374,961) (1,583,477)
Reinsurance contract asset (Note c)
Reinsurance Share of outstanding claims
reclassified to Reinsurance contract assets (Note (2,369,489) (1,615,475) (2,369,489) (1,615,475)
c)
Reinsurance share of IBNR reclassified to
(2,144,718) (1,951,123) (2,144,718) (1,951,123)
Reinsurance contract assets (Note c)
Reinsurance share of Claims paid reclassified to
(2,792,910) (2,038,968) (2,792,910) (2,038,968)
Co-assurance receivables reclassified to
(30,420) (376,777) (30,420) (376,777)
NEM Insurance Plc
Notes To The Transition

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
c Reinsurance Contract assets N’000 N’000 N’000 N’000
Reinsurance share of UPR reclassified from
2,374,961 1,583,477 2,374,961 1,583,477
Reinsurance assets (note b)
Deferred Commission Income reclassified from
(531,568) (361,710) (531,568) (361,710)
Other payables (note n)
Asset for remaining coverage 1,843,393 1,221,767 1,843,393 1,221,767
Reinsurance Share of outstanding claims
2,369,489 1,615,475 2,369,489 1,615,475
reclassified from Reinsurance assets (Note b)
Reinsurance share of IBNR reclassified from
2,144,718 1,951,123 2,144,718 1,951,123
Reinsurance assets (Note b)
Reinsurance share of Claims paid reclassified
2,792,910 2,038,968 2,792,910 2,038,968
from Reinsurance assets (Note b)
Co assurance Receivables reclassified from
30,420 376,777 30,420 376,777
Reinsurance assets (Note b)
Amount Recoverable on Incurred Claims-Risk
291,773 224,461 291,773 224,461
Adjustment (Note e)
Amount recoverable on incurred claims 7,629,310 6,206,804 7,629,310 6,206,804
Balance as per (IFRS 17) 9,472,703 7,428,571 9,472,703 7,428,571
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
d Reinsurance contract Liabilities N’000 N’000 N’000 N’000

Reclassifications - - - -
Remeasurements - - - -
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
e Amount Recoverable on Incurred Claims-Risk
Adjustment N’000 N’000 N’000 N’000
Opening balance 224,461 - 224,461 -
Remeasurement (Note s) 67,312 224,461 67,312 224,461
Balance as per (IFRS 17) 291,773 224,461 291,773 224,461
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
f Deferred acquisition Cost N’000 N’000 N’000 N’000

Deferred acquisition Cost Reclassified to
(1,446,991) (1,030,753) (1,446,991) (1,030,753)
Insurance contract liability (note h)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
g Insurance Contract Liability (IFRS 4) N’000 N’000 N’000 N’000

Outstanding Claims Reserve reclassified to
Insurance contract liability (Note h) (3,018,611) (2,512,860) (3,018,611) (2,512,860)
Incurred but not Reported (IBNR) reclassified to
Unearned Premium Reserve reclassified to
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
h Insurance Contract Liability (IFRS 17) N’000 N’000 N’000 N’000
Insurance Contract Liability (IFRS 4) - - - -

Reclassification from Unearned Premium
8,265,357 6,329,907 8,265,357 6,329,907
Reserve (Note g)
Insurance acquisition cost reclassified from
DAC (Note f) (1,446,991) (1,030,753) (1,446,991) (1,030,753)
Remeasurement transferred to retained earnings
- - - -
(Note o)
Liability for Remaining Coverage (LRC) 6,818,366 5,299,154 6,818,366 5,299,154
Reclassification from Outstanding Claim
3,018,611 2,512,860 3,018,611 2,512,860
Reserve (Note g)
Reclassification from Outstanding Claim reserve
4,361,125 3,375,076 4,361,125 3,375,076
(Note g)
Liability for Incurred Claims (LIC) 7,379,736 5,887,936 7,379,736 5,887,936
Risk Adjustment (Note j) 476,064 370,552 476,064 370,552
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
i Dividend Income N’000 N’000 N’000 N’000
Dividend Income reclassified from Investment

470,062 622,121 470,062 622,121
income(Note y)
470,062 622,121 470,062 622,121
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
j Risk Adjustment N’000 N’000 N’000 N’000
Opening balance (IFRS 4) -

Opening balance (IFRS 17) 370,552 370,552
Remeasurement (Note u) 105,512 370,552 105,512 370,552
Balance as per (IFRS 17) (Note o) 476,064 370,552 476,064 370,552
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
k Other operating Income N’000 N’000 N’000 N’000
Balance as per IFRS 4 1,378,383 292,526 1,324,892 251,147

Unrealized foreign exchange gain transfer to Net
(297,149) (183,312) (297,149) (183,312)
foreign exchange income/(expense) (Note p)
1,081,234 109,214 1,027,743 67,835
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
l Other Insurance contract liabilities N’000 N’000 N’000 N’000
Trade payables reclassified from trade payables
487,527 410,728 487,527 410,728
(Note m)
Remeasurement - - - -
Balance as per (IFRS 17) 487,527 410,728 487,527 410,728
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
m Trade Payables N’000 N’000 N’000 N’000
Balance as at (IFRS 4) 487,527 410,728 487,527 410,728

Trade payables reclassified to Other Insurance
(487,527) (410,728) (487,527) (410,728)
contract liabilities (Note l)
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
n Other Payables N’000 N’000 N’000 N’000

Deferred Commission Income reclassified to
(531,568) (361,710) (531,568) (361,710)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
o Retained Earnings N’000 N’000 N’000 N’000
Opening balance (IFRS 4) 12,898,098 9,649,912 12,865,570 9,617,952

Remeasurement of Risk adjustment (Note j) (476,064) (370,552) (476,064) (370,552)
Remeasurement of Reinsurance share of Risk
291,773 224,461 291,773 224,461
adjustment (Note e)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
p Net foreign exchange income/(expense) N’000 N’000 N’000 N’000
Unrealized foreign exchange gain transfer from

297,149 183,312 297,149 183,312
Other operating income (Note k)
297,149 183,312 297,149 183,312
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
q Insurance Revenue N’000 N’000 N’000 N’000
Gross Premium Income reclassified from Gross

31,433,600 26,545,254 31,433,600 26,545,254
Premium written (Note r)
Movement in Remeasurement of Liability for
- - - -
remaining coverage (Note d)
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
r Gross Premium Written N’000 N’000 N’000 N’000
Gross Premium Written (IFRS 4) 33,369,050 27,875,088 33,369,050 27,875,088

Changes in Unearned Premium (IFRS 4) (1,935,450) (1,329,834) (1,935,450) (1,329,834)
Gross Premium Income (IFRS 4) 31,433,600 26,545,254 31,433,600 26,545,254
Reinsurance Expense (IFRS 4) (9,283,442) (7,239,127) (9,283,442) (7,239,127)
Net Premium Income (IFRS 4) 22,150,158 19,306,127 22,150,158 19,306,127
Gross Premium Income reclassified to insurance
revenue IFRS 17 (Note q) (31,433,600) (26,545,254) (31,433,600) (26,545,254)
Reinsurance expense reclassified to Net
expenses on reinsurance contracts IFRS 17 9,283,442 7,239,127 9,283,442 7,239,127
(Note s)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
s Net expenses from reinsurance contracts N’000 N’000 N’000 N’000
Commission received reclassified from fee &

1,562,242 1,454,875 1,562,242 1,454,875
Commission Income (Note t)
Recoverable from reinsurance reclassified from
5,173,213 4,811,834 5,173,213 4,811,834
Net Claims Expenses (Note v)
Reinsurance expenses reclassified from Net
(9,283,442) (7,239,127) (9,283,442) (7,239,127)
premium Income (Note r)
Remeasurement of reinsurance share of risk
67,312 224,461 67,312 224,461
adjustment(Note e)
Balance as per (IFRS 17) (2,480,675) (747,957) (2,480,675) (747,957)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
t Fee and Commission Income N’000 N’000 N’000 N’000
Fees and Commission Income received from

1,562,242 1,454,875 1,562,242 1,454,875
reinsurance ceded (IFRS 4)
Fees and commission Income received
reclassified to Net expenses on reinsurance
(1,562,242) (1,454,875) (1,562,242) (1,454,875)
contracts (Note u)
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
u Insurance Service Expenses N’000 N’000 N’000 N’000
Gross Claims incurred reclassified from net

claims expenses (Note v) 12,732,105 10,372,719 12,732,105 10,372,719
Acquisition and maintenance expenses
9,856,218 8,204,631 9,856,218 8,204,631
reclassified from underwriting expenses (Note w)
Remeasurement of risk adjustment(Note j) 105,512 370,552 105,512 370,552
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
v Claims Expense N’000 N’000 N’000 N’000
Claims Paid 12,294,580 11,603,949 12,294,580 11,603,949

Changes in Outstanding claims 505,751 (348,038) 505,751 (348,038)
Changes in IBNR 986,049 1,456,112 986,049 1,456,112
Claims recovered from salvage & subrogation (828,721) (2,339,304) (828,721) (2,339,304)
Gross claims incurred 12,957,659 10,372,719 12,957,659 10,372,719
Recoverable from reinsurance
(5,310,189) (4,811,834) (5,310,189) (4,811,834)
Net Claims expense 7,647,470 5,560,885 7,647,470 5,560,885
Gross claims incurred reclassified to insurance
(12,732,105) (10,372,719) (12,732,105) (10,372,719)
service expenses (Note u)
Impact of claims discounting transferred to
(225,554) - (225,554) -
insurance finance expense (Note ab)
Recoverable from reinsurance reclassified to net
5,173,213 4,811,834 5,173,213 4,811,834
expenses on reinsurance contracts (Note s)
Impact of reinsurance discounting transferred to
136,976 - 136,976 -
insurance finance income (Note aa)
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
w Underwriting Expenses N’000 N’000 N’000 N’000
Acquisition expenses IFRS 4 5,617,002 5,231,583 5,617,002 5,231,583

Maintenance expenses IFRS 4 4,239,216 2,973,048 4,239,216 2,973,048
Underwriting expenses IFRS 4 9,856,218 8,204,631 9,856,218 8,204,631
Underwriting expense transferred to Insurance
service expenses (Note u) (9,856,218) (8,204,631) (9,856,218) (8,204,631)
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
x Net credit impairment gain/losses N’000 N’000 N’000 N’000
Write back/(Allowance) for credit losses - Cash 1,299 (6,030) 1,299 (6,030)
(Allowance)/ Write back for credit losses - Bonds (10,490) 22,122 (10,490) 22,122
Allowance for credit losses - Fixed deposits (9,736) (9,997) (9,736) (9,997)
(18,927) 6,095 (18,927) 6,095
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
y Investment Income N’000 N’000 N’000 N’000
Balance as per IFRS 4 1,555,154 1,134,507 1,555,154 1,134,507

Interest from fixed deposit (Note z) (590,427) (477,788) (590,427) (477,788)
Interest from Amortized cost financial assets
(481,246) (15,355) (481,246) (15,355)
(Note z)
Interest from statutory deposit (Note z) (13,419) (19,243) (13,419) (19,243)
Dividend Income (Note i) (470,062) (622,121) (470,062) (622,121)
- - - -
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
z Interest revenue calculated using the effective
interest method N’000 N’000 N’000 N’000
Interest from fixed deposit (Note y) 590,427 477,788 590,427 477,788

Interest from Amortized cost financial assets (Note y) 481,246 15,355 481,246 15,355
Interest from statutory deposit (Note y) 13,419 19,243 13,419 19,243
1,085,092 512,386 1,085,092 512,386
NEM Insurance Plc

Adjustment Cont’d
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
aa Insurance finance income N’000 N’000 N’000 N’000
Transfer from claims expenses (Note v) 136,976 - 136,976 -

136,976 - 136,976 -
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
ab Insurance finance expenses N’000 N’000 N’000 N’000
Transfer from claims expenses (Note v) 225,554 - 225,554 -

225,554 - 225,554 -
Financial impact of transition to IFRS 17

Under IFRS 17, the concepts of deferred acquisition costs (DAC) and Deferred Commission Income (DCI) are no
longer applied to produce separately recognized assets and liabilities in relation to insurance contracts, instead
they are implicitly included in the measurement of insurance contract assets and liabilities. N1,446,991,000
(1 January 2022; N1,030,753,000) DAC on non-life insurance contracts has been derecognized on transition
and presented as a reclassification to insurance contract liabilities. Also N531,568,000 (1 January 2022;
N361,710,000) DCI on non-life insurance contracts has also been derecognized and presented as a
reclassification to Reinsurance contract assets.
Under IFRS 17, the concept of Risk adjustment for non-financial risks was introduced. As a result, N476,064,000
(1 January 2022: N370,552,000) was presented as a remeasurement of insurance contract liabilities and
adjusted on retained earnings as a reduction. The reinsurance portion of the risk adjustment N291,773,000
(1 January 2022: 224,460,714) was also recognized as a remeasurement of Reinsurance contract assets and
adjusted on retained earnings as an increase.
Given these adjustments, the total impact on the company’s retained earnings as a result from the first time
adoption of IFRS 17 on 1 January 2022 was (N146,091,290) which has been adjusted in the opening balance
of the company’s retained earnings. In managements opinion, this impact is immaterial to the assessment of
the company’s financial condition or assessment of its going concern.
NEM Insurance Plc
Consolidated and Separate Statements

Of Financial Position
For The Year Ended 31 December 2023
Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
2023 (Restated) (Restated) 2023 (Restated) (Restated)
Notes N’000 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 3 8,002,993 8,878,011 7,895,469 7,907,551 8,842,182 7,841,181
Financial investments
- At fair value through profit or loss 4 10,463,494 5,800,623 5,354,017 10,463,494 5,800,623 5,354,017
- At fair value through other
4 75,219 53,731 84,884 75,219 53,731 84,884
comprehensive income
- At amortised cost 4 36,355,234 12,159,020 8,143,491 36,355,234 12,159,020 8,143,491
Insurance contract assets 15.1 - - - - - -
Trade Receivable 5 450,143 672,356 1,479,056 354,531 672,356 1,479,056
Reinsurance contract assets 6 9,433,042 9,472,703 7,428,571 9,433,042 9,472,703 7,428,571
Other receivables and prepay-
8 2,148,365 723,429 414,712 1,875,423 581,362 263,776
ments
Investment in Subsidiary 10 - - - 435,000 150,000 150,000
Investment properties 11 2,353,946 1,813,768 1,706,167 2,353,946 1,813,768 1,706,167
Statutory deposit 12 320,000 320,000 320,000 320,000 320,000 320,000
Intangible asset 13 54,110 15,721 10 42,161 15,721 10
Property, Plant and Equipment 14(a)(b) 4,202,175 3,886,188 3,794,957 4,059,350 3,878,192 3,784,962
Right-of-use Assets 14(c) 609,015 149,520 209,920 609,015 149,520 209,920
Deferred tax assets 20(i) - 256,411 257,505 - 253,568 253,568
Total Assets 74,467,735 44,201,481 37,088,759 74,283,965 44,162,746 37,019,603
Liabilities
Insurance contract liabilities 15 25,285,724 14,674,166 11,557,642 25,097,847 14,674,166 11,557,642
Reinsurance contract liabilities 6.1 - - - - - -
Other Insurance contract liabilities 16 857,381 487,527 410,728 783,901 487,527 410,728
Borrowings 28 1,557,737 - - 1,557,737 - -
Other payables 17 2,093,470 1,575,721 1,531,528 2,015,522 1,570,560 1,499,104
Lease liabilities 17(d) 473,241 35,999 139,623 473,241 35,999 139,623
Retirement benefit obligations 18 - 29,497 52,414 - 29,497 52,414
Income tax liability 19 1,155,152 379,224 623,508 1,154,348 378,179 618,736
Deferred tax liabilities 20(ii) 4,507,627 3,687 10,387 4,505,697 3,687 10,387
Total Liabilities 35,930,332 17,185,821 14,325,830 35,588,294 17,179,615 14,288,634
Share capital 21 5,016,477 5,016,477 5,016,477 5,016,477 5,016,477 5,016,477

Statutory contingency reserve 22 9,837,510 7,186,595 6,098,784 9,837,510 7,186,595 6,098,784
Retained earnings 23 21,578,802 12,713,807 9,503,821 21,779,997 12,681,279 9,471,861
FVOCI reserve 24 (46,277) (67,765) (36,612) (46,277) (67,765) (36,612)
Asset revaluation reserve 25 2,107,964 2,107,964 2,107,964 2,107,964 2,107,964 2,107,964
Other Reserves - gratuity 26 - 58,581 72,495 - 58,581 72,495
Insurance finance reserve 7 - - - - - -
Non-controlling interest 9 42,927 - - - - -
Total Equity 38,537,403 27,015,659 22,762,929 38,695,671 26,983,131 22,730,969
Total Equity and Liabilities 74,467,735 44,201,481 37,088,759 74,283,965 44,162,746 37,019,603
The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2024 and signed on its behalf by:
Mr. Tope Smart (Group Chairman) Mr. Andrew Ikekhua (MD/CEO) Mr. Idowu Semowo (CFO)
FRC/2013/CIIN/00000001331 FRC/2018/CIIN/00000018245 FRC/2013/ICAN/00000001466
The accompanying notes form an integral part of these consolidated and separate financial statements.
NEM Insurance Plc
Consolidated and Separate Statements of

Income For The Year Ended 31 December 2023
Group Parent
2022 2022
2023 (Restated) 2023 (Restated)
Notes N’000 N’000 N’000 N’000
Insurance Revenue 27 52,112,435 31,433,600 51,993,997 31,433,600
Insurance Service Expenses 32.1 (34,218,973) (22,693,835) (34,116,367) (22,693,835)
Net expenses on Reinsurance contracts 29.1 (12,795,475) (2,480,675) (12,795,475) (2,480,675)
Insurance Service Result 5,097,987 6,259,090 5,082,155 6,259,090
Interest revenue calculated using the effective interest method 33a 2,649,191 1,085,092 2,648,134 1,085,092
Dividend Income 33 687,422 470,062 687,422 470,062
Net foreign exchange gain 35d 11,388,625 297,149 11,388,625 297,149
Net Fair value gain 34 4,807,948 174,088 4,807,948 174,088
Net credit impairment losses 36(c) (213,317) (18,927) (213,317) (18,927)
Net Investment result 19,319,869 2,007,464 19,318,812 2,007,464
Insurance finance expenses from insurance contracts issued 15.1 (389,227) (225,554) (389,227) (225,554)
Insurance finance Income from reinsurance contracts held 6.1 234,922 136,976 234,922 136,976
Net Insurance finance expenses (154,305) (88,578) (154,305) (88,578)
Net Insurance and Investment result 24,263,551 8,177,976 24,246,662 8,177,976

Other operating income 35 242,610 1,081,234 180,117 1,027,743
Gain/(loss) on disposal of property, plant and equipment 37 13,657 (36,425) 13,657 (36,425)
Management expenses 36 (5,279,154) (3,724,696) (4,912,943) (3,673,499)
Finance cost 30 (362,809) - (348,772) -
Profit before taxation 18,877,855 5,498,089 19,178,721 5,495,795
Income taxes 19(b) (5,929,070) (96,667) (5,924,145) (94,941)
Profit for the year after tax 12,948,785 5,401,422 13,254,576 5,400,854

Actuarial loss-change in assumption 18 (11,463) (72) (11,463) (72)
Actuarial loss - experience adjustment 18 - (20,542) - (20,542)
Deferred tax 20(ii) - 6,700 - 6,700
Items within OCI that will not be reclassified to the Profit or

loss:
Gain on FVTOCI 24 21,488 (31,153) 21,488 (31,153)

Gain on revaluation of land and buildings 25 - - - -
Deferred tax 25 - - - -
Total other comprehensive income/(loss) for the year 10,025 (45,067) 10,025 (45,067)
Total comprehensive income for the year 12,958,810 5,356,355 13,264,601 5,355,787
Profit/(Loss) Attributable to:

Equity holders of the parent 13,020,855 5,401,422 13,254,576 5,400,854
Non controlling interest (72,073) - - -
Total comprehensive income/(loss) attributable to:
Equity holders of the parent 13,030,880 5,356,355 13,264,601 5,355,787
Non controlling interest (72,073) - - -

146
Consolidated Statement of Changes in Equity (Group)
Other Asset Non-con-

Share Share Contingency reserve FVOCI revaluation Retained trolling
capital premium reserve -Gratuity Reserve reserve earnings Total Interest Total Equity
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Balance 1 January 2023 5,016,477 - 7,186,595 58,581 (67,765) 2,107,964 12,713,807 27,015,659 - 27,015,659
Total comprehensive income -
for the year: -
Addition during the year 115,000 115,000
Profit/(loss) for the year - - - - - - 13,020,855 13,020,855 (72,073) 12,948,782
Transfer to contingency reserve - - 2,650,915 - - (2,650,915) - -
Dividend paid during the year - - - - - - (1,504,943) (1,504,943) (1,504,943)
Transfer to share capital - - - - - - - - -
Fair value loss on FVOCI - - - - 21,488 - - 21,488 21,488
Reclassification of other actuarial
(47,118) - (47,118) (47,118)
gain
Changes in valuation of gratuity - - - (11,463) - - - (11,463) (11,463)
Balance 31 December 2023 5,016,477 - 9,837,510 - (46,277) 2,107,964 21,578,804 38,494,478 42,927 38,537,405
Balance 31 December 2021 IFRS 4 5,016,477 - 6,098,784 72,495 (36,612) 2,107,964 9,649,912 22,909,020 - 22,909,020
Impact of transition adjustment (146,091) (146,091) (146,091)
Balance 1 January 2022 IFRS 17 5,016,477 - 6,098,784 72,495 (36,612) 2,107,964 9,503,821 22,762,929 - 22,762,929
Total comprehensive income
for the year:
Profit for the year - - - - - - 5,401,422 5,401,422 5,401,422
Transfer to contingency reserve - - 1,087,811 - - - (1,087,811) - -
Dividend paid during the year - - - - - - (1,103,625) (1,103,625) (1,103,625)
Fair value gain on FVOCI - - - - (31,153) - - (31,153) (31,153)
Changes in valuation of gratuity - - - (13,914) - - - (13,914) (13,914)
Changes in valuation of land and building - - - - - - - - -
Balance 31 December 2022 5,016,477 - 7,186,595 58,581 (67,765) 2,107,964 12,713,807 27,015,659 - 27,015,659
NEM Insurance Plc
w w w. n e m - i n s u r a n c e . c o m
Consolidated Statement of Changes in Equity (Parent)
Other Asset
Share Contingency reserve FVOCI revaluation Retained Total
Share capital premium reserve -Gratuity Reserve reserve earnings equity
NEM Insurance Plc
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Balance 1 January 2023 5,016,477 - 7,186,595 58,581 (67,765) 2,107,964 12,681,279 26,983,131

for the year:
Profit for the year - - - - - - 13,254,576 13,254,576
Transfer to contingency reserve - - 2,650,915 - - - (2,650,915) -
Dividend paid during the year - - - - - (1,504,943) (1,504,943)
Transfer to share capital
Fair value gain on FVOCI - - - 21,488 - - 21,488
Reclassification of other actuarial gain (47,118) - (47,118)
Changes in valuation of gratuity - - - (11,463) - - - (11,463)
Balance 31 December 2023 5,016,477 - 9,837,510 - (46,277) 2,107,964 21,779,996 38,695,671
Balance 31 December 2021 IFRS 4 5,016,477 - 6,098,784 72,495 (36,612) 2,107,964 9,617,952 22,877,060
Impact of transition adjustment (146,091) (146,091)
Balance 1 January 2022 IFRS 17 5,016,477 - 6,098,784 72,495 (36,612) 2,107,964 9,471,861 22,730,969
for the year:
Profit for the year - - - - - - 5,400,854 5,400,854
Transfer to contingency reserve - - 1,087,811 - - - (1,087,811) -
Dividend paid during the year - - - - - - (1,103,625) (1,103,625)
Fair value loss on FVOCI - - - - (31,153) - - (31,153)
Changes in valuation of gratuity - - - (13,914) - - - (13,914)
Changes in valuation of land and building - - - - - - - -
Balance 31 December 2022 5,016,477 - 7,186,595 58,581 (67,765) 2,107,964 12,681,279 26,983,131
147
NEM Insurance Plc
Statement Of Cash Flows

Group Parent
2023 2022 2023 2022

Notes N’000 N’000 N’000 N’000
Cash flows from Operating Activities:

Premium received 41.2 63,663,427 33,880,290 63,384,070 33,880,290
Premium Deposits 16 - 295,460 - 295,460
Reinsurance Premium Paid 29.2(a)(18,967,955) (8,298,290) (18,967,955) (8,298,290)
Direct Claims Paid 31 (15,662,252) (12,294,580) (15,569,519) (12,294,580)
Claims Received from Reinsurers 15.1 6,385,512 3,954,994 6,385,512 3,954,994
Cash Received from Salvages 31(c) 1,288,567 828,721 1,288,567 828,721
Acquisition expense Paid 32(b) (10,370,935) (6,033,240) (10,354,280) (6,033,240)
Maintenance Expenses Paid 32(c) (10,110,727) (4,200,041) (10,110,727) (4,200,041)
Cash paid to and on behalf of Employees 36(a) (2,351,227) (1,883,059) (2,140,888) (1,871,085)
Other Operating Expenses paid (2,091,341) (737,615) (1,962,323) (735,489)
Company Income Tax Paid 19(c) (345,842) (162,146) (345,449) (157,787)
Net cash inflow from operating activities 11,437,227 5,350,495 11,607,009 5,368,954
Cash flows from Investing Activities:

Acquisition of equities measured at FVTPL 4.1 (381,701) (377,119) (381,701) (377,119)
Purchase of Bond 3(a) (4,989,532) (2,696,023) (4,989,532) (2,696,023)
Purchase of placements 3(d) (16,669,082) (668,998) (16,669,082) (668,998)
Purchase of Treasury bills 3(e) (533,063) (360,000) (533,063) (360,000)
Purchase of Commercial papers 3(f) (7,162,790) (310,734) (7,162,790) (310,734)
Proceed from Redemption of Bond Instruments 3(a) 608,231 - 608,231 -
Proceed from disposal of placements 3(d) 10,095,885 - 10,095,885 -
Proceed from disposal of treasury bills 3(e) 360,000 - 360,000 -
Proceed from disposal of commercial papers 3(f) 2,576,368 - 2,576,368 -
Deposit for shares in Alpha Morgan 8(g) (1,500,000) - (1,500,000) -
Investment Income received 33 2,827,540 1,555,154 2,826,483 1,555,154
Rental & other Income received 71,408 - 46,983 -
Acquisition of Intangible assets 13 (51,750) (19,639) (37,962) (19,639)
Acquisition of Investment properties 11 (13,400) (3,000) (13,400) (3,000)
Net cashflow on staff loan 8(c(i) (38,305) - (38,305) -
Investment in Nem Health 8(c(vii) - - (260,119) -
Acquisition of PPE 14 (465,894) (362,687) (308,476) (362,687)
Proceeds from disposal on PPE 37 14,819 1,803 14,819 1,803
Net cash outflow from investing activities (15,251,265) (3,241,243) (15,365,661) (3,241,243)
Cash flows from financing activities

Lease payment during the year 17(d) (444,229) (127,424) (444,229) (127,424)
Borrowings 28 1,500,000 - 1,500,000 -
Interest payment on Alpha Morgan loan 28 (170,833) - (170,833) -
Cash received from non-controlling interest 9 115,000 - - -
Dividends paid to equity holders of the parent 17(b(i)) (1,378,919) (999,286) (1,378,919) (999,286)
Net cash outflow from financing activities (378,981) (1,126,710) (493,981) (1,126,710)
Total cash inflow (4,193,020) 982,542 (4,252,633) 1,001,001
Cash and cash equivalents at 1 January 8,878,011 7,895,469 8,842,182 7,841,181
Effect of foreign exchange gain on cash & cash equivalent 35(d) 3,343,719 - 3,343,719 -
Expected credit loss provision 3(c) (25,718) - (25,718) -
Cash and cash equivalents at 31 December 8,002,993 8,878,011 7,907,551 8,842,182
Represented by:
Cash and cash equivalents at 31 December 3 8,002,993 8,878,011 7,907,551 8,842,182
NEM Insurance Plc
Notes To The Financial Statements

3. Cash and Cash Equivalents

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Cash - petty cash 5,631 1,107 2,319 1,107

Balances with Local banks 1,780,518 1,681,926 1,709,393 1,646,097
Domiciliary accounts with local banks 2,478,959 928,325 2,478,959 928,325
Domiciliary accounts with Foreign banks 21,266 - 21,266 -
Placement with banks 2,878,664 5,004,299 2,857,658 5,004,299
Placement with other institutions 803,493 1,268,998 803,493 1,268,998
Interest receivable 60,181 - 60,181 -
8,028,711 8,884,655 7,933,269 8,848,826
Allowance for credit losses (Note 3(c)) (25,718) (6,644) (25,718) (6,644)
Total cash and cash equivalents 8,002,993 8,878,011 7,907,551 8,842,182
Current 8,002,993 8,878,011 7,907,551 8,842,182

Non-current - - - -
Short-term deposits are made for varying periods averaging between 1 - 90 days depending on the immediate
cash requirements of the Group. All deposits are subject to an average interest rate of 10.2%. The carrying
amounts disclosed above reasonably approximate fair value at the reporting date.
Group Parent
2023 2022 2023 2022
(a) Attributable to policyholders N’000 N’000 N’000 N’000
Balances with Local Banks 1,786,149 1,683,033 1,711,712 1,647,204

Domiciliary Accounts with local banks 2,478,959 928,325 2,478,959 928,325
Placement with Banks 2,878,664 5,004,299 2,857,658 5,004,299
Allowance for credit losses (25,718) (6,644) (25,718) (6,644)
7,178,235 7,609,013 7,082,792 7,573,184
Group Parent
2023 2022 2023 2022
(b) Attributable to shareholders N’000 N’000 N’000 N’000
Balances with Foreign banks 21,266 - 21,266 -

Placement with other institutions 803,493 1,268,998 803,493 1,268,998
824,759 1,268,998 824,759 1,268,998
Cash and cash equivalents 8,002,993 8,878,011 7,907,551 8,842,182
NEM Insurance Plc
Notes To The Financial Statements Cont’d

Group Parent
2023 2022 2023 2022
(c) Impairment allowance for cash & cash
equivalents N’000 N’000 N’000
ECL allowance as at 1 January 6,644 7,943 6,644 7,943

Additions/(Write back) during the year (Note 36(c)) 19,074 (1,299) 19,074 (1,299)
Balance as at the 31 December 25,718 6,644 25,718 6,644
4. Financial Investments
The Company’s financial investments are summarised by categories as follows:
Group Parent
2023 2022 2023 2022
(a) Attributable to policyholders N’000 N’000 N’000 N’000
Fair value through profit or loss (Note 4.1) 10,463,494 5,800,623 10,463,494 5,800,623
Fair value through other comprehensive income (Note 4.2) 75,219 53,731 75,219 53,731
Financial investments at amortised cost (Note 4.3) 36,355,234 12,159,020 36,355,234 12,159,020
46,893,947 18,013,374 46,893,947 18,013,374
Current 75,219 165,217 75,219 165,217

Non- current 46,818,728 17,848,157 46,818,728 17,848,157
46,893,947 18,013,374 46,893,947 18,013,374
4.1 Financial investments at fair value through profit or loss (Quoted equity)
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the beginning of the year 5,800,623 5,354,017 5,800,623 5,354,017

Addition during the year 381,701 377,119 381,701 377,119
Fair value gains (Note 34) 4,281,170 69,487 4,281,170 69,487
Balance at the end of the year 10,463,494 5,800,623 10,463,494 5,800,623
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Attributable to policyholders 10,463,494 5,800,623 10,463,494 5,800,623

Attributable to shareholders - - - -
NEM Insurance Plc

The group’s equity securities comprises of shares and stock holdings of listed companies. Management valued
the Company’s quoted investments at market value which is a reasonable measurement of fair value since the
prices of the shares are quoted in an active market. The instruments are measured and evaluated on a fair value
basis and fair value is determined by reference to published price quotations in an active market - classified as
level 1 in the fair value hierarchy.
4.2 Fair value through other comprehensive income

Financial assets at fair value through other comprehensive income (FVOCI) comprise:

(a) Equity securities which are not held for trading, and which the group has elected at initial recognition to recognise
as FVOCI. These are strategic investments and the group considers this classification to be more relevant.
Equity investments at FVOCI comprise the following individual investments:
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Equity securities
Fair value
CSCS 47,219 30,148 47,219 30,148
WAMCO 28,000 23,583 28,000 23,583
75,219 53,731 75,219 53,731
The fair value gains in the carrying amount of financial assets at fair value through other comprehensive income
(FVOCI) are recognized in other comprehensive income and accumulated under the heading of FVOCI reserve.
Group Parent
2023 2022 2023 2022
(b) Equity instrument measured at fair value through
other comprehensive income N’000 N’000 N’000 N’000
Balance at the beginning of the year 53,731 84,884 53,731 84,884

Fair value gain/(loss) (Note 24) 21,488 (31,153) 21,488 (31,153)
Balance at the end of the year 75,219 53,731 75,219 53,731
Attributable to policy holders - - - -

Attributable to shareholders 75,219 53,731 75,219 53,731
NEM Insurance Plc

4.3 Financial investments at amortised cost

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Bonds (Note 4.3(a)) 17,240,844 6,922,963 17,240,844 6,922,963

Placement above 90 days (Note 4.3(d)) 11,450,493 2,319,989 11,450,493 2,319,989
Treasury bills (Note 4.3(e)) 532,585 357,511 532,585 357,511
Commercial papers (Note 4.3(f)) 7,131,311 2,558,557 7,131,311 2,558,557
36,355,234 12,159,020 36,355,234 12,159,020
Attributable to policyholders 7,405,696 - 7,405,696 -

Attributable to shareholders 28,949,538 12,159,020 28,949,538 12,159,020
Group Parent
2023 2022 2023 2022
(a) Bonds N’000 N’000 N’000 N’000

Purchases during the year 4,989,532 2,696,023 4,989,532 2,696,023
Redemption (608,231) - (608,231) -
Foreign exchange gain (Note 35(d)) 5,733,096 - 5,733,096 -
17,456,873 6,951,673 17,456,873 6,951,673
Allowance for credit losses (Note 4.3(g)) (216,029) (28,710) (216,029) (28,710)
NEM Insurance Plc

(b) Breakdown of the bonds

2023 2022
Coupon
Institution Maturity date Rate Frequency N’000 N’000
Fidelity(Eurobond) October 2026 7.63% Half yearly 155,262 46,984

Sterling Bond(Corporate Bond) October 2025 16.25% Half yearly 30,949 29,933
Ondo State Bond January 2027 13.00% Half yearly 30,434 36,924
Capital Express(FGN BOND) Various Various Half yearly 346,403 450,945
MBC(Flourmill Bond)(Corporate Bond) February 2025 11.10% Half yearly 103,982 100,000
Apel Asset(FGN Bond) June 2027 11.20% Half yearly 151,349 150,000
UBA Capital (Bond)(Corporate Bond) May 2025 12.50% Half yearly 37,367 57,521
Nova Merchant Bank(Bond)(Corporate Bond) June 2027 12.00% Half yearly 52,500 52,000
FSDH(Euro Bond)(first Bank Nigeria) Various Various Half yearly 4,790,823 2,031,925
ValueFund Property(Corporate Bond) January 2025 13.50% Half yearly 159,065 150,000
Lagos State(Bond) Various Various Half yearly 67,095 68,072
Edo State Bond December 2025 9.00% Half yearly 27,283 50,000
CardinalStone Bond(Corporate Bond) December 2025 7.00% Half yearly 103,419 150,000
Sokoto State Bond May 2023 12.50% Half yearly 30,963 30,963
Powercorp Green Bond April 2031 12.00% Half yearly 280,257 310,250
CEGAM Insurance Note(Bond) May 2023 12.00% Half yearly - 57,145
Garden City Bond February 2024 6.00% Half yearly 511,217 500,000
Kwara State Bond July 2028 15.00% Half yearly 44,893 44,629
Ecobank Euro Bond February 2026 7.13% Half yearly 259,644 120,798
Chapel Hill Bond September 2028 6.13% Half yearly 83,367 82,000
Apel Eurobond Trust(Ghana Bond) January 2026 8.13% Half yearly 98,689 41,600
Presco Bond March 2029 12.85% Half yearly 29,111 28,000
Niger State Bond February 2029 15.50% Half yearly 50,918 47,898
FGN BOND(ZEDCREST) January 2026 12.50% Half yearly 158,291 150,000
Fidelity(Eurobond) October 2026 7.63% Half yearly 578,496 247,800
Minaret Sukuk Bond September 2028 15.00% Half yearly 67,700 71,396
Gombe Bond(Jewel Sukuk) August 2029 14.50% Half yearly 46,168 47,822
PAT Digital Infra Fund(Bond) February 2032 13.25% Half yearly 105,450 100,000
Dangote Cement April 2027 11.85% Half yearly 118,798 116,570
FGN BOND(Apel Capital) March 2027 16.29% Half yearly 262,244 250,687
Eurobond(ZEDCREST) October 2026 7.63% Half yearly 241,090 104,000
Eurobond(Access bank 2026)Zedcrest September 2026 6.13% Half yearly 290,344 124,800
Apel Capital(FGN Bond) January 2026 12.50% Half yearly 118,519 112,311
Geregu Power Plc July 2029 14.50% Half yearly 106,165 100,000
Dangote Bond July 2029 12.75% Half yearly 52,873 50,000
Cross River State Bond August 2029 15.50% Half yearly 74,167 75,000
MTN Bond September 2026 13.50% Half yearly 103,347 100,000
NEM Insurance Plc

2023 2022
Coupon
Institution Maturity date Rate Frequency N’000 N’000
Zamfara State Bond October 2029 17.00% Half yearly 192,789 200,000
Alagbaka Power Bond September 2023 19.00% Half yearly 158,354 150,000
FGN Eurobond November 2025 7.63% Half yearly 287,889 128,700
Capital Express (CEGAM) November 2023 12.00% Half yearly 129,493 185,000
Edo State Bond (River Jamieson) March 2030 18.15% Half yearly 473,749 -
Lagos State Government May 2033 15.25% Half yearly 189,815 -
FGN SUKUK VI October 20233 15.75% Half yearly 310,007 -
Amplitude Telecoms April 2024 18.50% Half yearly 521,786 -
Flour Mills Of Nigeria May 2026 14.50% Half yearly 408,065 -
Amplitude Telecoms October 2024 18.50% Half yearly 260,016 -
Amplitude Telecoms December 2024 18.50% Half yearly 200,295 -
TAB Funding SPV December 2027 16.75% Half yearly 401,767 -
Zimvest Capital(Eurobond) June 2026 8.75% Half yearly 477,461 -
FSDH (FGN Eurobond 2025) November 2025 7.63% Half yearly 719,723 -
Zedcrest (Access Bank Eurobond) October 2033 6.13% Half yearly 1,935,630 -
FSDH (Fidelity 2026 Eurobond) October 2026 7.63% Half yearly 539,207 -
FSDH (Fidelity 2026 Eurobond) October 2026 7.63% Half yearly 482,185 -
17,456,873 6,951,617
(c) The bonds comprises of fully amortising bonds, partially amortising bonds and bullet bonds. All bonds are
redeemable at par on their respective due dates. Management have opted to measure its bonds at amortised
cost in accordance with IFRS 9 with subsequent ECL provisions made in accordance with the standard.
Group Parent
2023 2022 2023 2022
(d) Placements above 90 days N’000 N’000 N’000 N’000
Opening balance 2,336,138 1,667,140 2,336,138 1,667,140

Addition during the year 16,669,082 668,998 16,669,082 668,998
Matured during the year (10,095,885) - (10,095,885) -
Foreign exchange gain (Note 35(d)) 2,311,810 - 2,311,810 -
11,461,910 2,336,138 11,461,910 2,336,138
Allowance for credit losses (Note 4.3(h)) (11,417) (16,149) (11,417) (16,149)
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(e) Treasury bills N’000 N’000 N’000 N’000
Opening balance 360,000 - 360,000 -

Addition during the year 533,063 360,000 533,063 360,000
Matured during the year (360,000) - (360,000) -
533,063 360,000 533,063 360,000
Allowance for credit losses (Note 4.3(i)) (478) (2,489) (478) (2,489)
Group Parent
2023 2022 2023 2022
(f) Commercial papers N’000 N’000 N’000 N’000
Opening balance 2,576,368 2,265,633 2,576,368 2,265,633

Addition during the year 7,162,790 310,734 7,162,790 310,734
Matured during the year (2,576,368) - (2,576,368) -
Balance 7,162,790 2,576,367 7,162,790 2,576,367
Allowance for credit losses (Note 4.3(j)) (31,478) (17,810) (31,478) (17,810)
Group Parent
2023 2022 2023 2022
(g) Impairment allowance on Bond: N’000 N’000 N’000 N’000

Allowance during the year (Note 36(c)) 187,319 10,490 187,319 10,490
Balance at the end of the year (Note 4.3(a)) 216,029 28,710 216,029 28,710
Group Parent
2023 2022 2023 2022
(h) Impairment allowance on Placements above 90 days: N’000 N’000 N’000 N’000

(Write back)/Allowance during the year (Note 36(c)) (4,733) 4,826 (4,733) 4,826
Balance at the end of the year (Note 4.3(d)) 11,417 16,149 11,417 16,149
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(i) Impairment allowance on Treasury bills: N’000 N’000 N’000 N’000
ECL allowance as at 1 January 2,489 - 2,489 -

(Write back)/Allowance during the year (Note 36(c)) (2,011) 2,489 (2,011) 2,489
Balance at the end of the year (Note 4.3(e)) 478 2,489 478 2,489
Group Parent
2023 2022 2023 2022
(j) Impairment allowance on Commercial papers: N’000 N’000 N’000 N’000

Allowance during the year (Note 36(c)) 13,668 2,421 13,668 2,421
Balance at the end of the year (Note 4.3(f)) 31,478 17,810 31,478 17,810
5 Trade Receivable
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
(a) Balance at the beginning of the year (Note 41

672,356 1,479,056 672,356 1,479,056
(a))
Balance at the end of the year (Note 41 (a)) 450,143 672,356 354,531 672,356
Current 450,143 672,356 354,531 672,356
Non-current - - - -
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
(b) Analysis of Trade Receivables

Amount due from Insurance Brokers 450,143 672,356 354,531 672,356
(c) The Group’s policy in line with the provisions of “No Premium, No Cover” on impairment of trade receivables
recognizes trade receivables from Brokers only. Such receivables should not exceed a period of 30 days.
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Age of Trade Receivables

Within 30 days 450,143 672,356 354,531 672,356
Above 30 days - - - -
450,143 672,356 354,531 672,356
NEM Insurance Plc

(d) Trade receivables are receivables from insurance brokers as at the year end and these have been collected
subsequent to the year ended 31 December 2023.
6 Reinsurance Contract Assets

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
2023 Restated Restated 2023 Restated Restated
N’000 N’000 N’000 N’000 N’000 N’000
Assets for Remaining 4,933,371 1,843,393 1,221,767 4,933,371 1,843,393 1,221,767

Coverage (6.1)
Amount Recoverable for
4,499,671 7,629,310 6,206,804 4,499,671 7,629,310 6,206,804
Incurred Claims (Note 6.1)
9,433,042 9,472,703 7,428,571 9,433,042 9,472,703 7,428,571
Current 4,933,371 2,405,381 1,886,319 4,933,371 2,405,381 1,886,319

Non-current 4,499,671 7,067,322 5,542,251 4,499,671 7,307,117 5,542,251
6.1 Reconciliation of Reinsurance contracts held, as at December 31 2023

Assets for remaining Ammount Recoverable
coverage on Incurred claims
Non-loss Loss Incurred Risk
Group component component claims adjustment Total
N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets as of January 1, 2023 1,843,393 - 7,337,537 291,773 9,472,703
Reinsurance contract liabilities as of January 1, 2023 - - - - -
Net Reinsurance contracts as of January 1, 2023 1,843,393 - 7,337,537 291,773 9,472,703
Reinsurance expenses (15,849,441) - - - (15,849,441)
Changes that relate to past service-adjustment to LIC - - - - -
Effect of changes in the risk of reinsurance non-performance - - - - -
Ammounts recoverred from reinsurance: - - - - -
Recoveries of incurred claims and other attributable
- - 2,981,602 39,349 3,020,951
income
Recoveries/(reversals of recoveries) on onerous contracts - 33,014 - - 33,014
(15,849,441) 33,014 2,981,602 39,349 (12,795,475)
Insurance Finance Income - - 234,922 - 234,922

Insurance finance reserve (changes in discount rate) - - - - -
- - 234,922 - 234,922
Cash flows in the period -
Reinsurance premiums paid 18,906,404 - - - 18,906,404
Ammounts received under reinsurance contracts held - - (6,385,512) - (6,385,512)
Net cash inflow 18,906,404 - (6,385,512) - 12,520,892
Reinsurance contracts assets as of December 31, 2023 4,900,356 33,014 4,168,549 331,121 9,433,041
Reinsurance contract liabilities as of December 31, 2023 - - - - -
Net Reinsurance contracts as of December 31, 2023 4,900,356 33,014 4,168,549 331,121 9,433,041
NEM Insurance Plc

Reconciliation of Reinsurance contracts held, as at December 31 2022

N’000 N’000 N’000 N’000 N’000
Ammounts recoverred from reinsurance: -
R
ecoveries of incurred claims and other attributable income - - 5,173,213 67,312 5,240,525
Recoveries and reversals of recoveries on onerous contracts - - - - -
(7,721,200) - 5,173,213 67,312 (2,480,675)

- - 136,976 - 136,976
Cash flows in the period
Net cash inflow 8,342,826 - (3,954,995) - 4,387,831
Reinsurance contracts assets as of December 31, 2022 1,843,393 - 7,337,537 291,773 9,472,703
Net Reinsurance contracts as of December 31, 2022 1,843,393 - 7,337,537 291,773 9,472,703

Parent component component claims adjustment Total
N’000 N’000 N’000 N’000 N’000
Ammounts recoverred from reinsurance:
Recoveries of incurred claims and other attributable income - - 2,981,602 39,349 3,020,951
Recoveries/(reversals of recoveries) on onerous contracts - 33,014 - - 33,014
(15,849,441) 33,014 2,981,602 39,349 (12,795,475)

- - 234,922 - 234,922
Cash flows in the period -
Net cash inflow 18,906,404 - (6,385,512) - 12,520,892
Reinsurance contracts assets as of December 31, 2023 4,900,356 33,014 4,168,549 331,121 9,433,041
Net Reinsurance contracts as of December 31, 2023 4,900,356 33,014 4,168,549 331,121 9,433,041
NEM Insurance Plc


N’000 N’000 N’000 N’000 N’000
Ammounts recoverred from reinsurance:
Recoveries of incurred claims and other attributable income - - 5,173,213 67,312 5,240,525
Recoveries and reversals of recoveries on onerous contracts - - - - -
(7,721,200) - 5,173,213 67,312 (2,480,675)

- - 136,976 - 136,976
Cash flows in the period
Net cash inflow 8,342,826 - (3,954,995) - 4,387,831
Reinsurance contracts assets as of December 31, 2022 1,843,393 - 7,337,537 291,773 9,472,703
Net Reinsurance contracts as of December 31, 2022 1,843,393 - 7,337,537 291,773 9,472,703
6.2 Breakdown of Recoverable on incurred claims

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Recoverable on incurred claims 4,168,549 7,307,118 5,605,566 4,168,549 7,307,118 5,605,566

Coassurance receivable - 30,420 376,777 - 30,420 376,777
4,168,549 7,337,537 5,982,343 4,168,549 7,337,537 5,982,343
(a) Co-assurance receivables relate to claims paid on behalf of co-assurance companies where NEM Insurance
Plc is leading which are yet to be received at year end.
7 Insurance finance reserve

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Opening balance - - - - - -
Changes during the year - - - - - -
Closing balance - - - - - -
NEM Insurance Plc

8 Other receivables and prepayments

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Prepayments (Note 8(a)) 36,347 51,532 24,738 51,531

Interest receivable - 122,496 - 122,496
Accounts receivable (Note 8(b)) 419,050 233,370 1,690 8,804
Staff loans and advances (Note 8(c)) 108,114 220,446 108,114 220,446
Intercompany receivable (8(h)) - - 20,000 -
Withholding Tax Receivable 82,956 67,146 82,905 67,146
Deposit for shares in NEM Asset Management Coy Ltd (Note 8(d)) - - 82,500 82,500
Receivables from NEM Health Ltd (Note 8(e)) - 26,540 53,576 26,540
Stock brokers' current accounts (Note 8(f)) 1,899 1,899 1,899 1,899
Deposit for shares in Alpha Morgan Bank Ltd (Note 8(g)) 1,500,000 - 1,500,000 -
2,148,365 723,429 1,875,423 581,362
Group Parent
2023 2022 2023 2022
(a) Prepayments N’000 N’000 N’000 N’000

Payment during the year 37,447 111,193 24,738 111,193
Amortisation during the year (Note 8(a)(ii)) (52,631) (99,223) (51,531) (99,223)
Group Parent
2023 2022 2023 2022
(i) Breakdown of prepayments N’000 N’000 N’000 N’000
Prepaid Commission 11,609 38,525 - 38,524

Rent and rates 24,738 13,007 24,738 13,007
36,347 51,532 24,738 51,531
Group Parent
2023 2022 2023 2022
(ii) Breakdown of amortisation during the year N’000 N’000 N’000 N’000
Commission 34,112 63,565 33,012 63,565

Rent and rates (Note 36(b)) 18,519 35,658 18,519 35,658
52,631 99,223 51,531 99,223
NEM Insurance Plc

(iii) Prepaid commission represents commission paid to brokers on deposit premium received during the year
which will be recognised respectively when the business commence.
(i) Interest receivable represents accrued interest on various placements as at the reporting date.
Group Parent
2023 2022 2023 2022
(b) Accounts receivable N’000 N’000 N’000 N’000

Additions 287,364 - - -
Received during the year (13,060) (11,821) (7,114) (2,951)
Provision for impairment (Note 8(c)i) (88,624) - - -
419,050 233,370 1,690 8,804
Group Parent
2023 2022 2023 2022
(i) Provision for Impairment N’000 N’000 N’000 N’000
Balance at the beginning of the year 22,199 15,804 - -

Allowance during the year (Note 36(c)) 66,425 6,395 - -
88,624 22,199 - -
(ii) Included in the N419 million group balance is the amount of N389 milliom (478 million less impairment of
88million) due from NEM Asset Management Company Limited’s customers. The impairment was necessary
as a result of the non-performance of the facilities extended to customers. Management has intensified efforts
to ensure the recoverability of these amounts. The N1.6 million parent balance relates to rent receivable from
the company’s tenants.
Group Parent
2023 2022 2023 2022
(c) Staff loans and advances N’000 N’000 N’000 N’000

Additions during the year 102,496 234,374 102,496 234,374
Repayment during the year (64,191) (36,242) (64,191) (36,242)
Write-off during the year (Note 8(c)(i) (150,637) (1,029) (150,637) (1,029)
(i) Write-off during the year represents staff loans and advances no longer recoverable.

NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(d) Deposit for shares in NEM Asset Management
Company Ltd N’000 N’000 N’000 N’000
Balance at the beginning of the year - - 82,500 82,500

Reclassification during the year (Note 10(a)) - - - -
Balance at the end of the year - - 82,500 82,500
(i) Deposit for shares in NEM Asset Management Ltd represents amount given to NEM Asset Management
Company Limited for future increase in shares.
Group Parent
2023 2022 2023 2022
(e) Receivables from NEM Health Ltd N’000 N’000 N’000 N’000
Balance at the beginning of the year - - 26,540 -

Addition - 26,540 312,036 26,540
Reclassification during the year (Note 10(b)) - - (285,000) -
Balance at the end of the year - 26,540 53,576 26,540
Addition in Nem health is broken into:

Cash - 26,540 260,119 26,540
Assumed liability - - 51,917 -
- 26,540 312,036 26,540
The assumed liability relates to the outstanding lease balance relating to the acquisition of a vehicle on lease by
NEM Insurance Plc for NEM Health Ltd. NEM insurance Plc have fully transferred ownership to NEM Health
but has fully retained the liability arising thereof.
(i) Deposit for shares in NEM Health Ltd represents amount given to NEM Health Limited for future increase in
shares.
Group Parent
2023 2022 2023 2022
(f) Stock brokers' current accounts N’000 N’000 N’000 N’000
Centrepoint Investment Limited 1,899 1,899 1,899 1,899

1,899 1,899 1,899 1,899
(i) Stock brokers’ current accounts comprise of amount due to NEM Insurance Plc after year end reconciliation
with brokers.
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(g) Deposit for Shares in Alpha Morgan Bank Ltd N’000 N’000 N’000 N’000
Balance at the beginning and end of the year - - - -

Addition during the year 1,500,000 - 1,500,000 -
1,500,000 - 1,500,000 -
Following from the board resolution dated 27th April 2023, NEM Insurance Plc deposited the sum of N1.5
billion to acquire a 15% stake in Alpha Morgan Bank Ltd and is awaiting approval from all relevant regulatory
authorities.
(h) Intercompany balances relates to a zero interest, N20million short term loan facility granted by NEM Insurance
Plc to Nem Asset Management Company Ltd on 28 December 2023.
9 Non-Controlling Interest
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
115,000,000 ordinary shares in NEM Health Ltd 115,000 - - -

Share of Loss for the period (72,073) - - -
Balance 42,927 - - -
This is the component of shareholders’ equity as reported on the consolidated statement of financial position
which represents the ownership interest of shareholders other than the parent of the subsidiary. As at the
reporting date, other shareholders held 28.75% percent of the ordinary share capital (including the voting rights)
of NEM Health limited, which was incorporated in Nigeria on 22 November 2022 with registration number
“2002868”.
10 Investment in Subsidiaries
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
115,000,000 ordinary shares in NEM Health Ltd - - 150,000 150,000

Share of Loss for the period - - 285,000 -
Balance - - 435,000 150,000
NEM Insurance Plc

10(a) Investment in subsidiary - NEM Asset

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the beginning of the year - - 150,000 150,000

Reclassification during the year (Note 8(d)) - - - -
Balance at the end of the year - - 150,000 150,000
NEM Insurance Plc acquired 100% interest in NEM Asset Management Company limited in 2016. NEM Asset
Management Company Limited commenced operation in March 2016 and its principal activity is asset leasing
and LPO financing. The Assets and Liabilities of the Subsidiary are consolidated in these Financial Statements.
Its principal place of business is at NEM House 199 Ikorodu road, Obanikoro, Lagos. During the year, the
subsidiary made a Loss of N55,105,146 (2022:Profit N566,979).
10(b) Investment in subsidiary - NEM Health

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the beginning of the year - - - -

Reclassification during the year (Note 8(e)) - - 285,000 -
Balance at the end of the year - - 285,000 -
NEM Insurance Plc incorporated and acquired a 71.25% interest in NEM Health Ltd on 22 November 2022
. NEM Health Limited commenced operation in May 2023 and its principal activity is the provision of health
management services. The Assets and Liabilities of the new Subsidiary are consolidated in these fianancial
statements. Its principal place of business is at NEM House 199 Ikorodu road, Obanikoro, Lagos. During the
year, the subsidiary made a loss of N250,688,955 (2022 Nill).
10(c) The table below summarises the information of all the Parent’s subsidiaries before any in-
tra-group elimination.
2023 2022
(i) NEM Asset Management Company Limited N’000 N’000
Cash and cash Equivalents 8,029 35,829

Trade and other Receivables 390,923 309,238
Property plant and equipment 6,397 7,996
Deferred tax asset - 2,843
Other liabilities (276,145) (173,379)
Net assets 129,204 182,526
NEM Insurance Plc

2023 2022
N’000 N’000
Income 60,874 53,491

Expenses (109,271) (51,198)
(Loss)/Profit before tax (48,398) 2,294
(Loss)/Profit after tax (53,323) 567
2023 2022
(ii) NEM Health Limited N’000 N’000
NCI Percentage 28.75% -

Cash and cash equivalent 87,414 -
Trade receivables 95,612 -
Other receivables and prepayments 146,457 -
Intangible assets 11,950 -
Property plant and equipment 136,428 -
Insurance contract liabilities (187,878) -
Other liabilities (140,671) -
Net assets 149,311 -
Carrying amount of NCI 42,927 -
2023 2022
N’000 N’000
Income 122,803 -
Expenses (373,492) -
(Loss) before tax (250,689) -
(Loss) after tax (250,689) -
(Loss) allocated to NCI (28.75%) (72,073) -
10(d) Significant restrictions and impairment

The Group does not have significant restrictions on its ability to access or use its assets and settle its liabilities
asides those resulting from the regulatory frameworks within which the insurance business operates.
The Company’s investment in subsidiaries was assessed for impairment as at 31 December 2022 with no
trigger of impairment identified. Consequently, no impairment charge was recognised.
NEM Insurance Plc

11 Investment Properties
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000

Addition during the year (Note 11(f)) 13,400 3,000 13,400 3,000
Revaluation gain (Note 34) 526,778 104,601 526,778 104,601
(a) Carrying amount of investment Balance

properties at the Fair
begining of value Carrying
Status of Title the year Additions changes amount
N’000 N’000 N’000 N’000
Oniru-Block Xv1, Plot 11, Aremo

Perfection in
Adesegun Oniru Crecent, Off Onigefon 261,947 13,400 138,009 413,356
progress
Road, Oniru, Lagos
Ebute-Metta- 22a, Borno Way, Ebute-
Perfected 411,794 - 20,513 432,307
Metta Lagos
Zaria- Plot No 34, Liverpool Street,
Off River Road, GRA Extension Zaria, Perfected 60,027 - 8,256 68,283
Kaduna State
Plot 10, Elegba Festival Drive, Off Oba
Perfection in
Idowu Abiodun Oniru Street, Victoria 1,080,000 - 360,000 1,440,000
progress
Island, Lagos
1,813,768 13,400 526,778 2,353,946
Group Parent
2023 2022 2023 2022
The Company's investment properties are allocated
as follows: N’000 N’000 N’000 N’000
Attributable to policyholders - - - -
Attributable to shareholders 2,353,946 1,813,768 2,353,946 1,813,768
NEM Insurance Plc

(b) Investment properties are held at fair value which has been determined based on valuations performed
by independent valuation experts, Diya Fatimilehin & Co. Estate Surveyors & Valuers (FRC/2013/
NIESV/00000000754) ; Plot 237B, Muri Okunola Street, Victoria Island , Lagos; The Valuers Fatimilehin
Adegboyega and Diya Maurise Kolawole are registered with Financial Reporting Council of Nigeria with
registration Numbers FRC/2013/NIESV/00000000754 and FRC/2013/NIESV/00000002773 respectively.
(c) The valuers are the industry specialists in valuing these types of investment properties. The fair value is
supported by market evidence and represents the amount at which the assets could be exchanged between
knowledgeable, willing buyers and knowledgeable, willing sellers in an arm’s length transaction at the date of
valuation, in accordance with standards issued by International Valuation Standards Committee. Valuations are
performed on an annual basis and the fair value gains and losses are recorded within the statement of profit or
loss.
(d) This is an investment in land and building held primarily for generating income or capital appreciation and
occupied substantially for use in the operations of the Company. This is carried in the statement of financial
position at their market value.
(e) In the year, there was revaluation fair value gain on investment properties of N526,778,000.
(f) The Company incurred N13,400,000 (2022: N3,000,000) to perfect its title document for the Oniru-Block Xv1,
Plot 11, Aremo Adesegun Oniru Crecent, Off Onigefon Road, Oniru, Lagos property.
(g) The fair value measurement for the Group’s investment properties has been categorised as a level 3 fair value
based on the inputs to the valuation technique used (see below). The following table shows the valuation
technique used in measuring the fair value of investment property, as well as the significant unobservable inputs
used.
NEM Insurance Plc

Range of
unobservable
inputs Relationship of
Fair vaue at (probability unobservable
Investment Valuation 31 December Unobservable weighted inputs to fair
Security Hierarchy technique 2023 N'000 inputs average) value
N’000 N’000 N’000
Oniru-Block Xv1,
Plot 11, Aremo The higher the
Market Forecast price
Adesegun Oniru N303 per price per square
Valuation 413,356 per metre
Crecent, Off metre square metre, the higher
approach square
Onigefon Road, the fair value
Oniru, Lagos
Ebute-Metta- 22a, The higher the
Depreciation Forecast price
Borno Way, Ebute- N470 per price per square
Replacement 432,307 per metre
Metta Lagos metre square metre, the higher
Cost Method square
the fair value
Zaria- Plot No 34,
The higher the
Liverpool Street, Off Depreciation Forecast price
N22 per price per square
River Road, GRA Replacement 68,283 per metre
metre square metre, the higher
Extension Zaria, Cost Method square
the fair value
Kaduna State
Plot 10, Elegba
Festival Drive, Off The higher the
Depreciation Forecast price
Oba Idowu Abiodun N1,210 per price per square
Replacement 1,440,000 per metre
Oniru Street, meter square metre, the higher
Cost Method square
Victoria Island, the fair value
Lagos
12 Statutory deposit
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Statutory deposit 320,000 320,000 320,000 320,000
This represents the amount deposited with the Central Bank of Nigeria as at 31 December 2023: (2022: N
320m) which was in accordance with section 9(1) and section 10 (3) of Insurance Act CAP I17 LFN 2004.
Statutory deposits are measured at cost.
NEM Insurance Plc

13 Intangible assets (Computer software)

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Cost
At 1 January 98,690 79,051 81,235 61,596
Addition (Note 13(a)) 51,750 19,639 37,962 19,639
At 31 December 150,439 98,690 119,197 81,235
Amortisation
At 1 January 82,969 79,041 65,514 61,586
Amortisation during the year 13,361 3,928 11,522 3,928
At 31 December 96,329 82,969 77,036 65,514
Carrying Amount 54,110 15,721 42,161 15,721
(a) The software named “IES’ previously acquired by the Company used in posting the business transactions has
been fully amortized but still in use with the carrying amount of N10,000. However, additions were made to the
software that was acquired during the year for the implementation of IFRS 17 from “Tripple A”. In addition, a
new software “Seamless HR” was also acquired to help streamline the company’s human resource processes.
NEM Insurance Plc

14(a) Property, plant and equipment (Group)

Machinery Motor Furniture Computer
Land Building & equipt Vehicles & fittings Equipment Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cost
At 1 January 2022 672,200 2,834,700 20,652 692,698 23,141 155,148 4,398,539
Additions 91,230 4,411 25,560 163,817 5,546 72,123 362,687
Reclassification - - - 13,200 - - 13,200
Disposals - - (3,946) (47,785) (1,563) (16,496) (69,790)
At 31 December 2022 763,430 2,839,111 42,266 821,930 27,124 210,775 4,704,636
At 1 January 2023 763,430 2,839,111 42,266 821,930 27,124 210,775 4,704,636

Additions (Note 14(a)(i)) - 35,397 15,033 254,564 36,428 124,472 465,894
Reclassification (Note 14)(a)(iii) - - - 249,200 - - 249,200
Disposals - - - (267,648) (2,588) (7,584) (277,820)
At 31 December 2023 763,430 2,874,508 57,299 1,058,046 60,964 327,663 5,141,909
Accumulated depreciation
At 1 January 2022 - - 7,059 501,007 12,322 83,194 603,582
Charge for the year - 56,782 8,453 131,180 5,408 41,965 243,788
On disposals - - (3,946) (9,557) (1,563) (16,496) (31,562)
At 31 December 2022 - 56,782 11,566 625,270 16,167 108,663 818,448
At 1 January 2023 - 56,782 11,566 625,269 16,096 108,735 818,448

Reclassification (Note 14)(a)(iii) - - - 99,680 - - 99,680
On disposals - - - (266,964) (2,588) (7,106) (276,658)
At 31 December 2023 - 114,272 28,838 611,065 24,280 161,280 939,734
Carrying amounts at:

31 December 2023 763,430 2,760,236 28,461 446,981 36,684 166,383 4,202,175
31 December 2022 763,430 2,782,329 30,700 196,660 10,957 102,112 3,886,188
(ii) The Group had no capital commitments as at the statement of financial position date (2022: Nil). As at the reporting date
land is being carried at revalued amount.
(iii) Reclassification represents cost and accumulated depreciation of prior year’s Right-of-use (ROU) asset (Motor vehicle)
reclassified to property, plant and equipment during the year. This was as a result of the transfer of ownership of the leased
vehicles following the completion of their respective lease rental payments.
NEM Insurance Plc

(b) Property, plant and equipment (Parent)

Machinery Motor Furniture Computer
Land Building & equipt Vehicles & fittings Equipment Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cost
At 1 January 2022 672,200 2,834,700 20,650 680,944 23,055 153,603 4,385,152
Additions 91,230 4,411 25,560 163,817 5,546 72,123 362,687
Disposals - - (3,946) (47,785) (1,563) (16,496) (69,790)
At 31 December 2022 763,430 2,839,111 42,264 810,176 27,038 209,230 4,691,249
At 1 January 2023 763,430 2,839,111 42,264 810,176 27,038 209,230 4,691,249

Additions (Note 14(a)(i)) - 35,397 15,035 152,571 18,511 86,962 308,476
Reclassification (Note 14(a)(iii) - - - 249,200 - - 249,200
Disposals - - - (267,648) (2,588) (7,584) (277,820)
At 31 December 2023 763,430 2,874,508 57,299 944,299 42,961 288,608 4,971,105
Accumulated depreciation
At 1 January 2022 - - 7,059 498,655 12,251 82,225 600,190
On disposals - - (3,946) (9,557) (1,563) (16,496) (31,562)
At 31 December 2022 - 56,782 11,566 621,038 16,096 107,575 813,057
At 1 January 2023 - 56,782 11,566 621,038 16,096 107,575 813,057

Reclassification (Note 14(a)(iii) - - - 99,680 - - 99,680
On disposals - - - (266,964) (2,588) (7,106) (276,658)
At 31 December 2023 - 114,272 28,838 591,730 21,880 155,035 911,755

31 December 2023 763,430 2,760,236 28,461 352,569 21,081 133,573 4,059,350
31 December 2022 763,430 2,782,329 30,698 189,138 10,942 101,655 3,878,192
NEM Insurance Plc

14(c) Right-of-Use Assets

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Cost
At 1 January 249,200 262,400 249,200 262,400
Additions during the year 761,269 - 761,269 -
Reclassification (Note 14(a)(iii) (249,200) (13,200) (249,200) (13,200)
At 31 December 761,269 249,200 761,269 249,200
Accumulated depreciation N'000 N'000 N'000 N'000
At 1 January 99,680 52,480 99,680 52,480
Charge for the year 152,254 49,840 152,254 49,840
Reclassification (Note 14(a)(iii) (99,680) (2,640) (99,680) (2,640)
At 31 December 152,254 99,680 152,254 99,680
At 31 December 609,015 149,520 609,015 149,520
15 Insurance Contract Liabilities

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Liability for Remaining

16,385,228 6,818,366 5,299,154 16,202,176 6,818,366 5,299,154
Coverage (Note 15.1)
Liability for Incurred
8,900,496 7,855,800 6,258,488 8,895,671 7,855,800 6,258,488
claims (Note 15.1)
25,285,724 14,674,166 11,557,642 25,097,847 14,674,166 11,557,642
The firm Ernst & Young (FRC/2012/NAS/00000000738), an actuarial service organisation did the valuation
for the reporting date. The actuarial valuation reports were authorised by Miller Kingsley, a professional
actuary registered with the Financial Reporting Council of Nigeria with registration number FRC/2012/
NAS/00000002392.
NEM Insurance Plc

15.1 Reconciliation of Insurance contracts issued, 31 December 2023

Liability for remaining Liability for Incurred
coverage claims
N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as at January 1, 2023 6,818,366 - 7,379,736 476,064 14,674,166
Insurance contract assets as of Janaury 1 2023 - - - - -
Net Insurance Contracts as of Janaury 1 2023 6,818,366 - 7,379,736 476,064 14,674,166
Insurance Revenue (Note 27) (52,112,434) - - - (52,112,434)
Insurance Service Expenses:
Incurred claims (Note 32.1) - - 14,850,605 178,550 15,029,155
Ammortization of insurance acquisition cashflows (Note 32.1) 18,989,828 - - - 18,989,828
Losses and reversals of losses on onerous contracts (Note 32.1) - 199,989 - - 199,989
Total Gross Insurance Service result (33,122,606) 199,989 14,850,605 178,550 (17,893,462)
Insurance finance expenses - - 389,227 - 389,227
Insurance finance (income) expenses (Changes in discount rates) - - - - -
- - 389,227 - 389,227
Cash flows in the period:
Premiums received (Note 41.2) 63,009,810 - - - 63,009,810
Insurance acquisition cash flows paid (Note 32.2) (20,520,331) - - - (20,520,331)
Claims paid (Note 31) - - (14,373,686) - (14,373,686)
Net cash flow 42,489,479 - (14,373,686) - 28,115,793
Insurance contract liabilities, as at December 31 2023 16,185,239 199,989 8,245,882 654,614 25,285,725
Insurance contract assets as at December 31 2023 - - - - -
Net Insurance Contracts as at December 31 2023 16,185,239 199,989 8,245,882 654,614 25,285,725
Reconciliation of Insurance contracts issued, 31 December 2022

coverage claims
N’000 N’000 N’000 N’000 N’000
Insurance Revenue (Note 27) (31,433,600) (31,433,600)
Insurance Service Expenses: -
Losses and reversals of losses on onerous contracts (Note 32.1) - - - - -
Total Gross Insurance Service result (21,577,382) - 12,732,105 105,512 (8,739,765)
- - 225,554 - 225,554
Claims paid (Note 31) - - (11,465,859) - (11,465,859)
Net cash flow 23,096,594 - (11,465,859) - 11,630,735
Insurance contract liabilities, as at December 31 2022 6,818,366 - 7,379,736 476,064 14,674,166
Net Insurance Contracts as at December 31 2022 6,818,366 - 7,379,736 476,064 14,674,166
NEM Insurance Plc


coverage claims
N’000 N’000 N’000 N’000 N’000
Losses and reversals of losses on onerous contracts (Note 32.1) - 199,989 - - 199,989
Total Gross Insurance Service result (33,009,216) 199,989 14,753,047 178,550 (17,877,631)
- - 389,227 - 389,227
Claims paid (Note 31) - - (14,280,952) - (14,280,952)
Net cash flow 42,193,037 - (14,280,952) - 27,912,085
Insurance contract liabilities, as at December 31 2023 16,002,187 199,989 8,241,057 654,614 25,097,847
Net Insurance Contracts as at December 31 2023 16,002,187 199,989 8,241,057 654,614 25,097,847

coverage claims
N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as at January 1, 2022 5,299,154 5,887,936 370,552 11,557,642
Losses and reversals of losses on onerous contracts (Note 32.1) - - - - -
Total Gross Insurance Service result (21,577,382) - 12,732,105 105,512 (8,739,765)
- - 225,554 - 225,554
Claims paid (Note 31) - - (11,465,859) - (11,465,859)
Net cash flow 23,096,594 - (11,465,859) - 11,630,735
Insurance contract liabilities, as at December 31 2022 6,818,366 - 7,379,736 476,064 14,674,166
Net Insurance Contracts as at December 31 2022 6,818,366 - 7,379,736 476,064 14,674,166
NEM Insurance Plc

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Fire 3,157,786 3,055,325 2,400,152 3,157,786 3,055,325 2,400,152

Accident 1,026,496 1,117,894 980,428 1,026,496 1,117,894 980,428
Marine and Aviation 825,317 834,039 604,141 825,317 834,039 604,141
Motor 1,901,659 1,569,692 1,220,307 1,901,659 1,569,692 1,220,307
Oil and Gas 555,386 513,888 432,036 555,386 513,888 432,036
Agriculture 7,284 1,093 3,226 7,284 1,093 3,226
Engineering 716,003 286,124 226,586 716,003 286,124 226,586
Bond 51,127 1,680 21,060 51,127 1,680 21,060
Health Insurance 4,825 - - - - -
8,245,883 7,379,736 5,887,936 8,241,058 7,379,736 5,887,936

Liability for incurred claims is composed of Outstanding claims reserve N2,531,091,405 (31 Dec
2022:N3,018,611,755; 1 Jan 2022: N2,512,860,096) and IBNR reserve of N5,995,612,139 (31 Dec 2022:
N4,361,125,075; 1 Jan 2022: N3,375,076,412)
(b) The Age Analysis of Liability for Incurred Claims (excluding IBNR) in thousands of Nigerian Naira as at 31
December 2023 is as follows:
Discharge
Pending Related to vouchers
substan awaiting not returned 31 Dec 2022 1 Jan 2022
tiating adjusters' by the Restated Restated
documents report customers Total N’000 N’000 N’000
0 - 90 days 12,394 42,866 89,140 144,400 337,952 729,511

91 - 180 days 20,893 54,609 73,829 149,332 387,390 680,704
181 - 270 days 29,883 46,637 86,944 163,464 595,602 616,975
270 - 365 days 252,271 261,444 352,149 865,864 622,225 407,227
365 days and above 411,655 395,067 401,308 1,208,030 1,075,442 78,443
727,097 800,623 1,003,371 2,531,091 3,018,611 2,512,860
(c) Risk Adjustment

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Fire 250,833 159,346 127,175 250,833 159,346 127,175

Accident 81,538 82,531 69,675 81,538 82,531 69,675
Motor 151,055 117,525 79,926 151,055 117,525 79,926
Oil and Gas 44,116 44,397 37,436 44,116 44,397 37,436
Agriculture 579 85 224 579 85 224
Engineering 56,874 21,124 16,103 56,874 21,124 16,103
Bond 4,061 124 1,497 4,061 124 1,497
654,614 476,064 370,552 654,614 476,064 370,552
NEM Insurance Plc

(D) Age Analysis By Reason
0 - 90 days 91 - 180 days 181-270 days 271-365 days Above 365 days Total
Qty N'000 Qty N'000 Qty N'000 Qty N'000 Qty N'000 Qty N'000
1 Discharge Voucher
Signed and returned 21 28,125 5 27,362 15 26,658 22 97,049 35 140,243 98 319,438
to policyholders
Discharge Vouchers
2 12 13,493 9 12,619 9 40,114 13 52,490 21 24,255 64 142,970
not yet Signed
Claims reported but

3 incomplete docu- 25 17,151 15 13,440 53 16,435 23 218,922 901 524,341 1,017 790,290
mentation
Claims reported but

4 1 5,676 7 6,112 7 7,741 6 96,957 10 11,250 31 127,736
been adjusted
5 claims repudiated - - 1 1,000 2 3,000 - - 1 4,000 4 8,000
Awaiting adjusteds
6 10 50,781 10 82,434 8 29,739 11 224,305 12 193,457 51 580,716
final report
7 Litigation award - - - - 6 4,175 12 61,550 29 176,500 47 242,225
Awaiting Lead insur-

8 34 29,175 35 6,365 45 23,853 35 61,209 89,758 210,360
er's instruction 1,023 1,172
Third party liability

9 - - - - 15 11,749 15 53,381 35 44,227 65 109,357
outstanding
Total 103 144,400 82 149,332 160 163,464 137 865,864 2,067 1,208,030 2,549 2,531,091
15.3(a) Liability for Remaining coverage-Non loss

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Fire 3,095,764 1,599,781 1,047,446 3,095,764 1,599,781 1,047,446

Accident 811,800 584,805 367,757 811,800 584,805 367,757
Motor 5,844,628 2,513,176 1,820,088 5,844,628 2,513,176 1,820,088
Oil and Gas 4,033,582 377,573 701,051 4,033,582 377,573 701,051
Agriculture 47,288 64,233 11,048 47,288 64,233 11,048
Engineering 948,171 695,564 330,115 948,171 695,564 330,115
Bond 289,625 280,718 148,546 289,625 280,718 148,546
Health Insurance 183,054 - - - - -
16,185,241 6,818,366 5,299,155 16,002,187 6,818,366 5,299,155
NEM Insurance Plc

(b) The above balances represent the unearned premium amount. It represents the company’s obligation to
investigate and pay valid claims under existing insurance contracts for insuredevents that have not yet occurred.
The carrying amounts disclosed above approximate fair value at the reporting date. All amounts are payable
within one year.
(c) Liability for Remaining Coverage-Onerous contracts

Group Parent
31 Dec 2022 1 Jan 2022 31 Dec 2022 1 Jan 2022
N’000 N’000 N’000 N’000 N’000 N’000
Fire - - - - - -
Accident - - - - - -
Marine and Aviation - - - - - -
Motor 199,989 - - 199,989 - -
Oil and Gas - - - - - -
Agriculture - - - - - -
Engineering - - - - - -
Bond - - - - - -
199,989 - - 199,989 - -
16 Other Insurance Contract liabilities

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Premium Deposits (16(a)) 726,865 295,460 653,385 295,460

Trade Payables (16(b)) 130,516 192,067 130,516 192,067
857,381 487,527 783,901 487,527
Group Parent
2023 2022 2023 2022
(a) Premium Deposits N’000 N’000 N’000 N’000
Premium Deposit (Note 16(a)) 726,865 295,460 653,385 295,460

Commission payable (Note 32(a)) - - - -
726,865 295,460 653,385 295,460
Premium deposit represents advance received in 2023 for 2024 production.
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(b) Trade Payables N’000 N’000 N’000 N’000
Due to Reinsurance Broker - A.O.N.(Note 16(b)(i) 8,464 119,268 8,464 119,268

Due to Reinsurance Broker - SCIB (Note 16(b)(ii) 122,052 72,799 122,052 72,799
130,516 192,067 130,516 192,067
Trade payable represents premium payable to both reinsurance companies and brokers, and commission
payable to insurance brokers. The carrying amount disclosed above reasonably approximates fair value at the
reporting date. All amounts are payable within one year and payment process has commenced subsequent to
the year end.
Group Parent
2023 2022 2023 2022
(i) Due to Reinsurance Broker - A.O.N. N’000 N’000 N’000 N’000
Premium 6,136 107,032 6,136 107,032

Commission 2,328 12,236 2,328 12,236
8,464 119,268 8,464 119,268
Group Parent
2023 2022 2023 2022
(ii) Due to Reinsurance Broker - SCIB N’000 N’000 N’000 N’000
Premium 88,487 49,213 88,487 49,213

Commission 33,564 23,586 33,564 23,586
122,052 72,799 122,052 72,799
17 Other Payables
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Accruals (Note 17(b)) 814,499 606,497 801,736 525,388

Dividend payable (Note 17(b(i)) 1,064,284 938,259 1,064,284 938,259
Other creditors (Note 17(c)) 214,687 30,965 149,502 106,913
2,093,470 1,575,721 2,015,522 1,570,560
(a) The carrying amount disclosed above reasonably approximates fair value at the reporting date. All amounts are
payable within one year.
NEM Insurance Plc

(b) Accruals Group Parent

2023 2022 2023 2022
N’000 N’000 N’000 N’000
Audit fees 23,225 4,000 20,025 4,000

Profit Sharing 350,000 258,664 350,000 258,664
Performance bonus 50,927 39,175 50,927 39,175
Filing fee 1,000 - 1,000 -
ICFR Fee 9,675 - 9,675 -
Naicom Levy 355,109 203,334 355,109 203,334
PAYE payable 65 - - -
WHT payable 127 - - -
Pension payable - 10,715 - 10,715
Cooperative 18 - - -
Others 24,352 90,609 15,000 9,500
814,499 606,497 801,736 525,388
(b(i)) Dividend payable represents Unclaimed Dividend returned to the Group by Apel Capital & Trust Limited for
investment as required by Securities and Exchange Commission.
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Movement in dividend payable:

Dividend declared (Note 23) 1,504,943 1,103,625 1,504,943 1,103,625
Dividend paid (1,378,919) (999,286) (1,378,919) (999,286)
Balance at the end of the year 1,064,284 938,259 1,064,284 938,259
Group Parent
2023 2022 2023 2022
(c) Other Creditors N’000 N’000 N’000 N’000
Due to NEM Assets Management Ltd (Note 17 (e)) - - 104,888 75,948

Other Creditor (Note 17(f)) 214,687 30,965 44,614 30,965
214,687 30,965 149,502 106,913
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(d) Lease liabilities N’000 N’000 N’000 N’000

Additions during the year 543,725 - 543,725 -
Interest charged during the year (Note 36) 120,202 23,800 120,202 23,800
Lease initial deposit requirement 217,544 - 217,544 -
Lease payment during the year (444,229) (127,424) (444,229) (127,424)
Balance as at the end of the year 473,241 35,999 473,241 35,999
(e) NEM Asset Management Company Ltd financed the purchase of some motor cars for NEM Insurance Plc. The
total amount outstanding as at 31 December 2023 was N104,888,000.00 (2022: N75,948,000.). NEM Asset
Management Company Limited is a fully owned subsidiary of NEM Insurance Plc.
(f) Included in other creditors is the sum of N159,420,294 which are short term deposits due to external customers
of NEM Asset Management Company ltd.
(g) Deferred commission Income represents unexpired commission received on reinsurance expenses.
18 Retirement Benefit Obligations

The Group has a defined benefit gratuity scheme covering its entire employees who have spent a minimum
number of five years continuous service. The scheme is unfunded, therefore, no contribution is made to
any fund.The Company has stopped gratuity since 2014 and the balance outstanding on it is subjected to
valuation at year end. The company has settled the liabilities of all employees under this scheme, and has thus,
discontinued the valuation of the liability, derecognised all outstanding liabilities, reserves and assets in that
regards.
The amounts recognised in the income statement (Management expenses) are as follows:

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Current service cost - - - -

Interest cost on benefit obligation (Note 36(a)) - 5,590 - 5,590
- 5,590 - 5,590
The amounts recognised in the statement of financial position at the reporting date are as follows:
Present value of the defined benefit obligation
Total defined benefit obligation - 29,497 - 29,497
NEM Insurance Plc

The movement in the defined benefit obligation is as follows:

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000

Current service cost - - - -
Interest cost - 6,298 - 6,298
Benefits paid (Note 41) (40,960) (49,829) (40,960) (49,829)
Actuarial loss-Due to change in assumption 11,463 72 11,463 72
Actuarial losses - Due to experience adjustment - 20,542 - 20,542
Balance at the end of the year - 29,497 - 29,497
19 Taxation
Group Parent
2023 2022 2023 2022
(a) Per Financial Position N’000 N’000 N’000 N’000

Income tax for the year 869,457 474,789 869,305 474,157
Education tax for the year 107,475 53,246 107,475 53,246
Prior year over-provision (Note 19(b)) - (487,254) - (487,254)
Information technology levy (Note 19(b)) 191,787 54,792 191,787 54,792
Paid during the year (392,791) (339,857) (392,398) (335,498)
Group Parent
2023 2022 2023 2022
(b) Per Income Statement N’000 N’000 N’000 N’000
Income tax 869,457 474,789 869,305 474,157

Education tax 107,475 53,246 107,475 53,246
Prior year over-provision - (487,254) - (487,254)
Information technology levy 191,787 54,792 191,787 54,792
1,168,720 95,573 1,168,567 94,941
Deferred tax asset (Note 20 (i)) 256,411 1,094 253,568 -
Deferred tax liabilities (Note 20 (ii)) 4,503,940 - 4,502,010 -
Charge for the year 5,929,070 96,667 5,924,145 94,941
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(c) Per Statement of Cash flows N’000 N’000 N’000 N’000
Tax Paid during the year (392,791) (339,857) (392,398) (335,498)

Witholding tax utilized during the year 46,949 177,711 46,949 177,711
Total Cash paid for Tax liability (345,842) (162,146) (345,449) (157,787)
(d) Effective tax reconciliation

The effective tax reconciliation for the Group is as follows:
Rate 2023 Rate 2022
N’000 N’000
Profit before income tax 18,877,855 5,536,289

Tax calculated at the corporate tax rate 30% 5,753,768 30% 1,662,635
Effect of Education tax levy 1% 107,475 1% 53,246
Effect of:
Non-deductible expenses 0% 82,703 2% 83,464
Tax exempt income -18% (3,350,829) -23% (1,269,506)
PTF Levy 0% - 0% -
Information technology levy (NITDA) 1% 191,787 1% 54,792
Recognition of temporary differences 17% 3,144,165 0% (710)
Prior year overprovision 0% - -9% (487,254)
Total income tax expense in income statement 31% 5,929,070 2% 96,667
The effective tax reconciliation for the Parent is as follows:

Rate 2023 Rate 2022
N’000 N’000
Profit before income tax 19,178,721 5,533,995

Tax calculated at the corporate tax rate 30% 5,753,616 30% 1,660,199
Tertiary Education tax levy 1% 107,475 1% 53,246
Effect of:
Non-deductible expenses 0% 82,703 2% 83,464
Tax exempt income -17% (3,350,829) -23% (1,269,506)
PTF levy 0% - 0% -
Information technology levy (NITDA) 1% 191,787 1% 54,792
Recognition of temporary differences 16% 3,139,392 0% -
Overprovision in prior years 0% - -9% (487,254)
Total income tax expense in income statement 31% 5,924,145 2% 94,941
NEM Insurance Plc

(e) Information Technology Levy

The Nigeria Information Technology Development Agency (NITDA) Act was signed into Law on 24 April, 2007.
Section 12 (2a) of the Act stipulates that, specified companies contribute 1% of their profit before tax to the
Nigerian Information Technology Development Agency. In line with the Act, the Company has provided for
NITDA levy at the specified rate.
20 Deferred Taxation
Group Parent
2023 2022 2023 2022
i Deferred tax Assets N’000 N’000 N’000 N’000
Balance at the beginning of the year (256,411) (257,505) (253,568) (253,568)

Write back for the year 256,411 1,094 253,568 -
Balance at the end of the year - (256,411) - (253,568)
Group Parent
2023 2022 2023 2022
ii Deferred tax Liabilities N’000 N’000 N’000 N’000

Charge for the year 4,503,940 - 4,502,010 -
Revaluation surplus (Note 25) - - - -
Other reserves-gratuity (Note 26) - (6,700) - (6,700)
Group Parent
2023 2022 2023 2022
iii Analysis of deferred tax liabilities as at year end N’000 N’000 N’000 N’000
Property plant and equipment 810,813 - 808,883 -

Unrealised foreign exchange gain 3,681,405 - 3,681,405 -
Fair value gain on investment property 52,678 - 52,678 -
Impairment allowance on financial assets (37,269) - (37,269) -
4,507,627 - 4,505,697 -
21 Share Capital
Group Parent
2023 2022 2023 2022
Ordinary shares issued and fully paid N’000 N’000 N’000 N’000
5,016,477,767 ordinary shares of N1 each 5,016,477 5,016,477 5,016,477 5,016,477

5,016,477 5,016,477 5,016,477 5,016,477
NEM Insurance Plc

22 Statutory contingency reserve

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000

Transfer from revenue reserve (Note 23) 2,650,915 1,087,811 2,650,915 1,087,811
Statutory contingency reserve is calculated in accordance with the provisions of Section 21(2) of the Insurance
Act, 2003 at the higher of 3% of the total premium or 20% of total profit after tax. This shall accumulate until it
reaches the amount of greater of minimum paid-up capital or 50% of net premium.
During the current year, this was calculated based on 20% of the profit after tax.
23 Retained earnings
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the beginning of the year (IFRS 4) 12,713,805 9,649,912 12,681,279 9,617,952
Impact of first time adoption of IFRS 17 - (146,091) - (146,091)
Balance at the beginning of the year (IFRS 417) 12,713,805 9,503,821 12,681,279 9,471,861
Profit for the year 13,020,855 5,401,422 13,254,576 5,400,854
Transfer to contingency reserve (Note 22) (2,650,915) (1,087,811) (2,650,915) (1,087,811)
Dividend declared (Note 17(b)(i)) (1,504,943) (1,103,625) (1,504,943) (1,103,625)
(a)
The group’s and company’s profit after tax for the year was after adding foreign exchange gains of
N11,388,625,083 (2022: N297,149,038). As at the reporting date the unearned portion of the companies
current year profit after tax amounted to N7,474,367,619 (Earned N5,780,208,296), representing net foreign
exchange gains on the revaluation of closing balances of foreign quoted investments.
24 FVOCI reserve
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the beginning of the year (67,765) (36,612) (67,765) (36,612)

(Addition)/Write back during the year (Note 4.2(b) 21,488 (31,153) 21,488 (31,153)
Balance at the end of the year (46,277) (67,765) (46,277) (67,765)
NEM Insurance Plc

(a) The fair value reserve shows the effect from the fair value measurement of financial instruments of the category
FVOCI. Any gains or losses are not recognised in the comprehensive income statement until the asset has
been sold or impaired. The negative movement was due to change in the long term Unquoted Investments.
25 Asset revaluation reserve

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000

Additions during the year:Cost- revaluation surplus (Note 14) - - - -
Accumulated depreciation (Note 14) - - - -
- - - -
Deferred tax (Note 20(ii)) - - - -
- - - -
(a) The Land and building assets were not revalued during the current year in line with the Group’s policy of
carrying out a valuation exercise once in every three (3) years. The next Valuation will be done with respect to
December, 2024 financial statements.
26 Other Reserves - gratuity

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000

(Loss)/gain during the year (11,463) (20,614) (11,463) (20,614)
(47,118) - (47,118) -
Deferred tax (Note 20(ii)) - 6,700 - 6,700
Balance at the end of the year - 58,581 - 58,581
(a) This comprise of the cumulative actuarial loss on change in assumptions and experience adjustment.
27 Insurance Revenue
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Insurance revenue (Note 27(a)) 52,112,435 31,433,600 51,993,997 31,433,600

52,112,435 31,433,600 51,993,997 31,433,600
NEM Insurance Plc

(a) Insurance revenue increased when compared with previous year because of the new businesses (NNPC &
NLNG) won during the year and especially due to aggressive marketing embarked upon by the Company.
Group Parent
2023 2022 2023 2022
(b) Insurance Revenue N’000 N’000 N’000 N’000
Fire 11,583,954 7,841,750 11,583,954 7,841,750

Oil and Gas 10,932,219 5,049,166 10,932,219 5,049,166
General accident 4,769,538 2,986,452 4,769,538 2,986,452
Marine 4,459,975 3,680,389 4,459,975 3,680,389
Motor 16,309,055 9,424,104 16,309,055 9,424,104
Agricuture 82,539 90,293 82,539 90,293
Engineering 3,123,932 1,812,752 3,123,932 1,812,752
Bond 732,785 548,695 732,785 548,695
Health Insurance Premium (Note 27 (c)) 118,437 - - -
52,112,435 31,433,601 51,993,998 31,433,601
Total insurance revenue 52,112,435 31,433,601 51,993,998 31,433,601
(c) The health insurance revenue relates to earned premium income generated from NEM Health limited.
28 Borrowings
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Balance at the Beginning - - - -

Addition 1,500,000 - 1,500,000 -
Interest Exp (Note 30) 228,570 - 228,570 -
Repayment (170,833) - (170,833) -
Closing balance 1,557,737 - 1,557,737 -
During the year, NEM Insurance Plc obtained a short term loan facility from Alpha Morgan Ltd at 20% interest
(Maturity: 1 January 2024) to finance the 15% deposit for shares in Alpha Morgan Bank ltd.
NEM Insurance Plc

29.1 Net expenses from reinsurance contracts

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Reinsurance Premium (Note 6.1) 15,849,440 7,721,200 15,849,440 7,721,200

Reinsurance Recoverable (Note 6.1) (3,020,951) (5,240,525) (3,020,951) (5,240,525)
Recoveries and reversals of recoveries on onerous
(33,014) - (33,014) -
contracts (Note 6.1)
12,795,475 2,480,675 12,795,475 2,480,675
29.2(a) Paid reinsurance expense

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Reinsurance premiums paid (Note 6.1) 18,906,404 8,342,826 18,906,404 8,342,826

18,906,404 8,342,826 18,906,404 8,342,826
Opening-Due to Reinsurance Broker-A.O.N (Note 16) 119,268 128,213 119,268 128,213
Opening-Due to Reinsurance Broker - SCIB (Note 16) 72,799 19,318 72,799 19,318
Closing-Due to Reinsurance Broker - A.O.N. (Note 16) (8,464) (119,268) (8,464) (119,268)
Closing-Due to Reinsurance Broker - SCIB (Note 16) (122,052) (72,799) (122,052) (72,799)
Reinsurance expense paid during the year 18,967,955 8,298,290 18,967,955 8,298,290
(b) Reinsurance expenses of N18,906,404,041 was paid during the year, N10,656,246,236 was paid to the
foreign insurers while N8,250,157,805 was paid to local insurers. In 2022 reinsurance expense stood at
N8,298,290,000 (Foreign N5,754,274,429 - Local N2,544,015,571).
30 Finance Cost
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Interest exp on Lease Financing (17(d)) 120,202 - 120,202 -

Interest exp on Alpha morgan Loan facility (Note 28) 228,570 - 228,570 -
Interest expense-Others (Note 30(a)) 14,038 - - -
362,809 - 348,772 -
(a) Interest expense-others relates to the interest expense paid by NEM Asset Management Company Ltd on its
financial commitments.
NEM Insurance Plc

31 Claims Expenses paid

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Gross Claims paid (Note 31(a)) 15,662,252 12,294,580 15,569,519 12,294,580

Direct Claims recovered (Note 31(c)) (1,288,567) (828,721) (1,288,567) (828,721)
14,373,686 11,465,859 14,280,952 11,465,859
31(a) Claims paid per class

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Motor 6,862,673 5,076,395 6,862,673 5,076,395

Marine 1,346,001 1,131,694 1,346,001 1,131,694
Fire 3,910,233 4,506,321 3,910,233 4,506,321
General Accident 2,060,446 857,696 2,060,446 857,696
Oil and Gas 492,398 149,455 492,398 149,455
Agric 11,944 21,889 11,944 21,889
Engineering 813,530 517,567 813,530 517,567
Bond 72,293 33,563 72,293 33,563
Health Insurance 92,734 - - -
15,662,252 12,294,580 15,569,519 12,294,580
(b) Claims expenses consist of claims paid during the financial year.
Group Parent
2023 2022 2023 2022
(c) Direct Claims recovered N’000 N’000 N’000 N’000
Classes
Motor 258,085 217,392 258,085 217,392
Marine 36,053 40,638 36,053 40,638
Fire 788,838 470,999 788,838 470,999
General Accident 183,938 50,132 183,938 50,132
Oil and Gas - 17,347 - 17,347
Agric - - - -
Engineering 15,052 30,252 15,052 30,252
Bond 6,600 1,962 6,600 1,962
1,288,567 828,721 1,288,567 828,721
NEM Insurance Plc

32.1 Insurance Service Expenses

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Incurred Claims Expenses (Note 15.1) 15,029,155 12,837,617 14,931,597 12,837,617

Ammortization of insurance acquisition cashflows (Note 15.1) 18,989,828 9,856,218 18,984,781 9,856,218
Losses/(reversals of losses) on onerous contracts (Note 15.1) 199,989 - 199,989 -
34,218,973 22,693,835 34,116,367 22,693,835
32.2 Insurance acquisition cash flows paid

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Acquisition cost incurred during the year (Note 32(a)) 10,397,851 6,033,240 10,392,804 6,033,240
Maintenance incurred during the year (Note 32(b)) 10,122,479 4,239,216 10,122,479 4,239,216
20,520,331 10,272,456 20,515,283 10,272,456
Group Parent
2023 2022 2023 2022
(a) Acquisition expense N’000 N’000 N’000 N’000
The analysis of commission expenses by

business class is as follows:
Motor 2,520,902 1,279,953 2,520,902 1,279,953
Marine 808,859 704,634 808,859 704,634
Fire 2,737,100 1,761,635 2,737,100 1,761,635
General Accident 1,020,240 644,201 1,020,240 644,201
Oil & Gas 2,420,877 984,761 2,420,877 984,761
Agriculture 9,616 29,900 9,616 29,900
Engineering 726,425 474,661 726,425 474,661
Bond 148,784 153,495 148,784 153,495
Health Insurance 5,047 - - -
Acquisition expenses incurrred during the year 10,397,851 6,033,240 10,392,804 6,033,240
Commission payable (Note 16) - - - -
Prepaid commission-closing (Note 8(i)) 11,609 - - -
Prepaid commission-opening (Note 8(i)) (38,525) - (38,524) -
Acquisition cost per cash flow 10,370,935 6,033,240 10,354,280 6,033,240
NEM Insurance Plc

(b) The analysis of Maintenance expenses by business class is as follows:

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Motor 3,247,423 1,144,588 3,247,423 1,144,588

Marine 764,971 296,745 764,971 296,745
Fire 2,173,404 1,314,157 2,173,404 1,314,157
General Accident 815,665 386,341 815,665 386,341
Oil & Gas 2,430,192 678,275 2,430,192 678,275
Agriculture 10,156 42,392 10,156 42,392
Engineering 560,584 284,664 560,584 284,664
Bond 120,085 92,054 120,085 92,054
10,122,479 4,239,216 10,122,479 4,239,216
(c) The analysis of Maintenance expenses for the purpose Statement of Cash flows:
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Maintenance Expenses 10,122,479 4,239,216 10,122,479 4,239,216

Opening provision for Transport & traveling 39,175 - 39,175 -
Closing Provision for Transport and Traveling expense (50,927) (39,175) (50,927) (39,175)
Total Cash used for Maintenance expenses 10,110,727 4,200,041 10,110,727 4,200,041
(d)
Insurance service expenses consist of claims and claims handling expenses, acquisition and maintenance
expenses which include commission and policy expenses, and a proportion of directly attributable costs.
Insurance service expenses for insurance contracts are ammortised over the coverage period.
33 Investment Income
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Dividend income 687,422 470,062 687,422 470,062

Interest Revenue Calculated using the effective
2,649,191 1,085,092 2,648,134 1,085,092
Interest method (Note 33(a))
3,336,613 1,555,154 3,335,556 1,555,154
Opening Interest receivable-Cash (Note 8(a)) 122,496 - 122,496 -
Closing Accrued interest-Bond (Note 4.3(a)) (390,804) - (390,804) -
Closing Accrued interest-Placements (Note 4.3(d)) (240,765) - (240,765) -
Cash received from investment income 2,827,540 1,555,154 2,826,483 1,555,154
The increase in Investment was as a result of increased investment in various financial assets.
NEM Insurance Plc

(a) Interest Revenue Calculated using the effective Interest method

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Interest from fixed deposit 1,451,604 590,427 1,450,547 590,427

Interest from Amortised cost financial assets 1,178,339 481,246 1,178,339 481,246
Interest from statutory deposit 19,248 13,419 19,248 13,419
2,649,191 1,085,092 2,648,134 1,085,092
Group Parent
2023 2022 2023 2022
(b) Investment Income N’000 N’000 N’000 N’000
Attributable to Policy holders 1,868,969 870,886 1,867,912 870,886

Attributable to Share holders 1,467,644 684,268 1,467,644 684,268
3,336,613 1,555,154 3,335,556 1,555,154
34 Net Fair Value Gain

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Investment properties:
Fair Value Gain (Note 11) 526,778 104,601 526,778 104,601
Fair Value through Profit or Loss:
Quoted Equity Securities (Note 4.1) 4,281,170 69,487 4,281,170 69,487
4,807,948 174,088 4,807,948 174,088
35 Other operating income

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Sundry income (Note 35(a)) 112,402 255,104 112,402 251,685

Interest and Similar Income (35(f)) 64,183 50,072 - -
Recoveries (Note 35(c)) - 641,854 - 641,854
Interest Income-Staff loan 16,740 - 16,740 -
Rental Income (Note 35(b)) 49,284 134,204 50,975 134,204
242,610 1,081,234 180,117 1,027,743
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(a) Sundry Income N’000 N’000 N’000 N’000
Provision no longer required 1,361 13,511 1,361 13,511

Interest earned on current account 307 44 307 44
Rent refund on Garki Abuja Branch 900 900 900 900
Damages awarded from rent litigation - 2,588 - 2,588
Withholding tax credit notes (Note 35(a)(i)) 62,707 230,352 62,707 230,352
Statute Barred Unclaimed Dividend 8 3,456 8 3,456
Reclassification of other actuarial gain 47,118 - 47,118 -
Others - 4,253 - 834
112,402 255,104 112,402 251,685
(i) Amounts recognised with respect to witholding tax credit notes are in respect of Withholding tax deducted
at source on interests and dividends income from which credits have been issued by FIRS for the purpose of
defraying company income tax expenses.
Group Parent
2023 2022 2023 2022
(b) Rental income N’000 N’000 N’000 N’000
Ebute Meta property 8,434 7,075 8,434 7,075

Head Office 16,669 122,767 16,669 122,767
Zaria Kaduna - 112 - 112
Abuja Office (Sub lease) - - - -
Oniru property 25,872 4,250 25,872 4,250
50,975 134,204 50,975 134,204
(c) Recoveries represent prior years’ recoveries of loss incurred on bonds and guarantees
Group Parent
2023 2022 2023 2022
(d) Foreign exchange gains N’000 N’000 N’000 N’000
Exchange gain on foreign denominated cash & cash

3,343,719 297,149 3,343,719 297,149
instruments (Note 3)
Exchange gain on Placements above 90 days(Note 4.3(d)) 2,311,810 - 2,311,810 -
Exchange gain on Bond instruments (Note 4.3(a)) 5,733,096 - 5,733,096 -
11,388,625 297,149 11,388,625 297,149
NEM Insurance Plc

(e)
Foreign exchange gains arose majorly from retranslation of foreign denominated cash and cash equivalents,
placements and bonds with financial institutions as at the reporting date. The company adopted the I&E NAFEX
rate for all its foreign currency translation exercise.
(f)
Interest and similar income relates to interest income charged and earned by NEM Asset Management
Company limited on its customers for providing asset management services.
36 Management Expenses
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Employee benefit expenses (Note 36(a)) 2,310,268 1,889,357 2,099,928 1,877,383

Other Management Expenses (Note 36(b)) 1,586,415 976,635 1,458,170 940,611
Directors emoluments 187,299 173,315 187,299 173,315
AGM expenses 49,564 15,896 49,564 15,896
NAICOM Levy 658,104 336,637 658,104 336,637
Auditors Remuneration (Note 38(a)and (b) 23,625 11,500 20,425 10,300
Depreciation of property, plant and equipment (Note 14) 298,264 243,788 275,676 241,789
Depreciation of Right-of-use Assets (Note 14(c) 152,254 49,840 152,254 49,840
Interest expense (Note 17(d)) - 23,800 - 23,800
Amortisation (Note 13) 13,361 3,928 11,522 3,928
5,279,154 3,724,696 4,912,943 3,673,499
Group Parent
2023 2022 2023 2022
(a) Employee benefit expenses N’000 N’000 N’000 N’000
Salaries and Wages 1,430,245 1,215,713 1,248,527 1,204,840

Medical Expenses 95,062 95,782 94,792 95,600
Staff Training 124,102 110,517 122,656 110,127
Staff Welfare 560,801 389,179 550,485 389,179
Employers' Pension Contribution 100,058 71,868 83,467 71,339
2,310,268 1,883,059 2,099,928 1,871,085
Gratuity (Note 18) - 6,298 - 6,298
2,310,268 1,889,357 2,099,928 1,877,383
Gratuity paid 40,960 - 40,960 -
Cash paid to and on behalf of employees 2,351,227 1,889,357 2,140,888 1,877,383
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(b) Other Management Expenses N’000 N’000 N’000 N’000
Advertising 444,955 234,102 443,353 234,102

Bank charges 172,734 46,145 171,018 45,808
Business permit 1,073 1,420 1,073 1,420
Computer Expenses 35,457 21,414 35,416 21,373
Dailies and Subscription 151,663 129,028 150,084 117,320
Donations 23,529 32,445 23,529 32,445
ECOWAS Brown Card 6,137 7,374 6,137 7,374
Electricity expenses 42,681 40,008 42,681 40,008
Filing Fees 1,000 1,350 1,000 1,350
Fine & penalty (Note 36(d)) 9,300 - 9,300 -
Generator Expenses 70,803 101,173 70,803 101,173
Insurance Expenses 80,570 94,171 74,274 94,171
Motor running expenses 23,047 14,877 21,088 14,877
Motor Repairs & Maintenance 37,055 45,187 34,671 44,864
Nigerian Insurers Association Levy 9,162 8,346 9,162 8,346
Office General Expenses 130,456 84,778 98,107 83,693
Postages & telephone 13,104 11,552 11,342 11,552
Rent, rates and other expenses (Note 8(a(ii)) 44,429 35,658 44,429 35,658
Repairs & Maintenance 36,832 44,820 36,367 43,130
Staff loan written off (Note 8 (c)(i)) 150,637 1,029 150,637 1,029
Impairment (Note 8 (b)(i)) 66,425 6,395 - -
Other personnel expenses 12,085 - 12,085 -
Other Expenses 23,281 15,363 11,615 918
1,586,415 976,635 1,458,170 940,611
Group Parent
2023 2022 2023 2022
(c) Expected credit loss expense N’000 N’000 N’000 N’000
Allowance for credit losses - Cash (Note 3(c)) 19,074 (1,299) 19,074 (1,299)
Allowance for credit losses - Bonds (Note 4.3(g)) 187,319 10,490 187,319 10,490
Allowance for credit losses - Placement above 90 days (Note
(4,733) 4,826 (4,733) 4,826
4.3(h))
Allowance for credit losses - Treasury bills(Note 4.3(i)) (2,011) 2,489 (2,011) 2,489
Allowance for credit losses - Commercial papers (Note 4.3(j)) 13,668 2,421 13,668 2,421
213,317 18,927 213,317 18,927
NEM Insurance Plc

Group Parent
2023 2022 2023 2022
(d) Fine and penalty N’000 N’000 N’000 N’000
Description
Fine to NAICOM on Non-rendition of 2023 annual
1,000 - 1,000 -
AML/CFT/CPF employee training programme
Fine to NAICOM for violation of Paragragh 2.5.8 of
7,250 - 7,250 -
market conduct guidelines
Fine to NAICOM for late Submission of Board
250 - 250 -
resolution on approval
Penalty to NAICOM for the need to align the contents
50 - 50 -
in the company's form L38
Fine to NAICOM for use of unregistered brokers &
500 - 500 -
violation of INSP
Fine to NAICOM for Non-compliance QSPR 2012/Q1 (INSP) 250 - 250 -
9,300 - 9,300 -
37 Gain on disposal of Property, plant and equipment

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Cost (Note 14(b)) (277,820) (69,790) (277,820) (69,790)

Accumulated depreciation (Note 14(b)) 276,658 31,562 276,658 31,562
Carrying amount (1,162) (38,228) (1,162) (38,228)
Sale proceeds 14,819 1,803 14,819 1,803
13,657 (36,425) 13,657 (36,425)
38 Supplementary profit or loss information

Group Parent
2023 2022 2023 2022
(a) Profit before taxation is arrived at after charging: N’000 N’000 N’000 N’000
Depreciation (Note 14) 298,264 243,788 275,676 241,789

Amortisation (Note 13) 13,361 3,928 11,522 3,928
Auditors' fees (Note 36) 23,625 11,500 20,425 10,300
Profit/(Loss) on disposal of property, plant and
13,657 (36,425) 13,657 (36,425)
equipment (Note 37)
Directors' emoluments (Note 36) 187,299 173,315 187,299 173,315
and after crediting:
Foreign exchange gain (Note 35(d)) 11,388,625 297,149 11,388,625 297,149
Gain on investment properties (Note 34) 526,778 104,601 526,778 104,601
NEM Insurance Plc

(b) KPMG Professional Services was appointed to carry out the statutory audit of the financial statements, IFRS
17 certification and Internal Control over Financial Reporting (ICOFR) of the Company. Asides from these, the
Auditors did not provide any other non-audit services to the Company during the year (2023:Nil).
Group Parent
(c) Staff Costs Number Number Number Number
The average number of employees (excluding Directors) in

the financial year and staff costs were as follows:
Managerial 13 16 11 15
Senior 134 185 126 184
Junior 95 18 75 16
242 219 212 215
(d) Employees Remunerated at Higher Rates

The number of employees in receipt of emoluments excluding allowance and pension within the following
ranges were:
Group Parent
N N Number Number Number Number
60,001 - 500,000 - - - -
500,001 - 1,000,000 - 3 - -
1,000,001 - 1,500,000 - - - -
1,500,001 - 2,000,000 - 6 - 6
2,000,001 - 2,500,000 12 4 7 4
2,500,001 - 3,000,000 4 6 3 6
3,000,001 - 3,500,000 1 44 - 44
3,500,001 - 4,000,000 - 37 7 36
4,000,001 - 4,500,000 46 20 32 20
4,500,001 - Above 179 99 163 99
242 219 212 215
Group Parent
2023 2022 2023 2022
(e) Chairman's and Directors' Emoluments N’000 N’000 N’000 N’000
i Aggregate emoluments of the directors were:

Fees
Chairman 7,500 7,500 7,500 7,500
Other Directors 54,000 36,000 54,000 36,000
61,500 43,500 61,500 43,500
Emoluments as Executives 125,172 120,000 125,172 120,000
186,672 163,500 186,672 163,500
NEM Insurance Plc

ii
The number of Directors excluding the Chairman whose emoluments were within the following ranges were:
Group Parent
N N Number Number Number Number
2,000,000 - 4,000,000 - - - -
4,000,001 - 6,000,000 9 6 9 6
6,000,001 - 8,000,000 - - - -
8,000,001 and Above - - - -
9 6 9 6
The Highest paid Director earned N45,000,000 in 2023 (2022:N45,000,000)
39 Basic/Diluted earnings per ordinary share

Basic/Diluted earnings per share is calculated by dividing the results attributable to shareholders by the weighted
average number of ordinary shares in issue and ranking for dividend.
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Net profit attributable to ordinary shareholders for

13,020,855 5,401,422 13,254,576 5,400,854
basic and diluted EPS
Weighted average number of ordinary shares for EPS 5,016,477 5,016,477 5,016,477 5,016,477
Basic Earnings Per Share (kobo) 260 108 264 108
Diluted Basic Earnings Per Share (kobo) 260 108 264 108
(a) There have been no other transactions involving ordinary shares or potential ordinary shares between the
reporting date and date of completion of these financial statements.
40 Related party disclosures

(a) Parent
The Group is controlled by Nem Insurance Plc (incorporated in Nigeria) which is the parent company, and
whose shares are widely held by the investing public.
(b) Subsidiaries
During the year, the Parent conducted transactions with its related Company and also with its subsidiary
Company, Details of amount due from and to these related parties are as disclosed in Notes 9, 10 and 17(c))
to the financial statements. Lease financing transactions with related parties were carried out in the ordinary
course of business and were on an arm’s length basis. Where these are eliminated on consolidation, they are
not disclosed in the consolidated financial statements.
Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Due to NEM Asset Management Company Limited - - 104,888 75,948

Due from Nem Asset Management Company Limited - - 21,690 150,000
Due From Nem Health Limited - - 53,576 -
NEM Insurance Plc

(c) Transactions with key management personnel

The Group’s key management personnel and persons connected with them are also considered to be related
parties for disclossure purposes. The definition of key management includes close members of family and entity
over which control can be exercised. The key management personnel have been identified as the executive
directors of the Group. Close members of family are those members who may be expected to influence or be
influenced by that individual in their dealings with Nem Insurance Plc.
Group Parent
2023 2022 2023 2022
(d) Short term Benefits (Board of Directors) N’000 N’000 N’000 N’000
Fees:
Chairman 7,500 7,500 7,500 7,500
Other Directors 54,000 36,000 54,000 36,000
61,500 43,500 61,500 43,500
Other Emoluments:
Other Directors 125,172 120,000 125,172 120,000
186,672 163,500 186,672 163,495
Short term Benefits (Management Team)

Salaries and Allowances: 317,183 145,267 270,820 145,267
Post Employment Benefits (Management Team)

Pension - 11,629 - 11,629
Total Benefits to Key Personnel 503,855 320,396 457,492 320,391
NEM Insurance Plc

41.1 Cash flow from Operating activities

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Operating profit before tax 18,877,855 5,498,089 19,178,721 5,495,795

Adjustment for non-operating items:
Depreciation - Property, plant & equipment 14 298,264 243,788 275,676 241,789
Interest charged during the year 36 362,809 23,800 348,772 23,800
Depreciation - Right-of-use Assets 14 152,254 49,840 152,254 49,840
Amortisation - Intangible assets 13 13,361 3,928 11,522 3,928
Gain on disposal of property and equipment 37 (13,657) 36,425 (13,657) 36,425
Fair value gain on investment properties 11 (4,807,948) (104,601) (4,807,948) (174,088)
Fair value gain on quoted investment 4.1(a) (4,281,170) (69,487) (4,281,170) (69,487)
Exchange gain on Bond Instruments 35a (5,733,096) - (5,733,096) -
Allowance for credit losses 36(c) 213,317 20,226 213,317 20,226
Staff loan written off 150,637 - 150,637 -
Impairment 66,425 - - -
Service & Interest income on retirement benefit 18 - 6,298 - 6,298
Investment Income 33 (3,336,613) (1,555,154) (3,335,556) (1,555,154)
Cash flow changes before changes in
1,962,439 4,153,152 2,159,473 4,079,372
working capital
Changes in operating assets and liabilities

Decrease/(increase) in Trade receivables 222,213 806,700 317,825 806,700
Increase in Reinsurance contract assets 39,661 (2,044,132) 39,661 (2,044,132)
(Increase)/decrease in Other receivables and
(1,852,495) (413,055) (1,641,610) (352,438)
prepayments
Increase in Insurance contract liabilities 10,611,558 3,116,524 10,423,681 3,116,524
Increase/(decrease) in Other Insurance Contract
369,853 76,799 296,374 76,799
liabilities
Increase in Other payables 517,749 44,193 444,962 71,456
Net cash inflow from operating activities 11,870,978 5,740,182 12,040,365 5,754,282
Benefits paid (Note 18) (40,960) (49,829) (40,960) (49,829)
Tax paid 19(c) (392,791) (339,857) (392,398) (335,498)
11,437,227 5,350,495 11,607,009 5,368,954
NEM Insurance Plc

41.2 Premium received from policy holders

Group Parent
2023 2022 2023 2022
N’000 N’000 N’000 N’000
Trade receivable at the beginning 5(a) 672,356 1,479,056 672,356 1,479,056

Cash received from policy holders 15.1 63,009,810 33,369,050 62,708,320 33,369,050
Trade receivable at the end 5(a) (450,143) (672,356) (354,531) (672,356)
Deposit premium at the beginning 16 (295,460) - (295,460) -
Deposit premium at the end 16 726,865 (295,460) 653,385 (295,460)
Cash received during the year 63,663,427 33,880,290 63,384,070 33,880,290
42 Capital Commitments
There were no material capital commitments at 31 December 2023 (2022: Nil).
43 Contingent liabilities
There were contingent liabilities in respect of legal actions against the Group, the monetary amount of which
cannot be quantified. No provision has been made in these financial statements in respect of the legal actions
as the directors, having taken legal advice, do not believe any material liability will eventually be borne by the
Group.
44 Comparative Figures
Where necessary, comparative figures have been adjusted to conform with changes in the presentation of the
current year financial statements.
45 Legal proceedings and regulations

(a) Legal Proceedings
The Parent operates in the insurance industry and is subject to legal proceeding in the normal course of
business. While it is not practicable to forecast or determine the final results of all pending or threatened legal
proceedings, management does not believe that such proceedings (including litigation) will have a material
effect on its results and financial position.
(b) Regulations
The Parent is also subject to insurance solvency regulations in all the territories where it operates and has
complied with all these solvency regulations. There are no contingencies associated with the Parent’s
compliance or lack of compliance with such regulations.
(c) The directors are of the opinion that the Parent will not incur any significant loss with respect to these claims
and accordingly, no provision has been made in these Consolidated Financial Statements.
46 Events after the reporting date

The directors are not aware of any events which occurred since 31 December 2023 which may have material
effect on the financial statements at that date or which may need to be mentioned in the financial statements
in order not to make them misleading as to the operations or financial position at 31 December 2023.

47 Segment reporting
For management purposes, the Company is organised into business units based on their products and services and reportable operating segments as follows:
(a) Segments Report – Insurance Service Result per product
General Oil & Enginee
Segment reporting (2023) Motor Marine Fire Accident Gas Agriculture ring Bond Parent Health Group
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance revenue 16,309,055 4,459,975 11,583,953 4,769,538 10,932,219 82,539 3,123,932 732,785 51,993,997 118,438 52,112,435
Insurance service expenses:
Incurred claims expenses (6,887,804) (1,287,194) (3,123,973) (1,746,150) (494,511) (18,554) (1,254,391) (119,021) (14,931,599) (97,559) (15,029,157)
Ammortization of acquisition expenses (5,291,188) (1,523,654) (4,526,295) (1,779,428) (4,384,366) (22,454) (1,190,754) (266,642) (18,984,780) (5,047) (18,989,827)
NEM Insurance Plc
Losses/(reversal of losses onerous contracts (199,989) - - - - - - - (199,989) - (199,989)

(12,378,981) (2,810,848) (7,650,268) (3,525,579) (4,878,877) (41,009) (2,445,145) (385,662) (34,116,368) (102,606) (34,218,974)
Net Expenses on reinsurance contracts
held
Reinsurance Premium (1,027) (1,616,739) (3,416,249) (1,587,320) (8,304,176) (27,674) (826,002) (70,252) (15,849,440) - (15,849,440)
Recoveries of incurred claims and other
(636,104) 1,085,832 1,245,993 586,597 62,411 12,441 621,179 42,602 3,020,951 - 3,020,951
attributable income
Recoveries/(reversal of recoveries) on
33,014 - - - - - - - 33,014 - 33,014
onerous contracts
(604,116) (530,907) (2,170,257) (1,000,723) (8,241,766) (15,233) (204,823) (27,650) (12,795,475) - (12,795,474)
Insurance service result 3,325,958 1,118,220 1,763,429 243,235 (2,188,424) 26,298 473,964 319,473 5,082,155 15,832 5,097,987
Insurance finance expenses from
(82,279) (28,657) (191,373) (37,966) (39,104) (74) (9,717) (57) (389,227) - (389,227)
insurance contracts issued
Insurance finance Income from
40,769 17,986 131,490 29,177 7,953 35 7,468 44 234,922 - 234,922
reinsurance contracts held
Total Financial result 3,284,448 1,107,549 1,703,546 234,447 (2,219,575) 26,259 471,715 319,460 4,927,850 15,832 4,943,682

Segment reporting (2022 Restated) Motor Marine Fire Accident Gas Agriculture ring Bond Parent Health Group
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance revenue 9,424,104 3,680,389 7,841,750 2,986,452 5,049,166 90,293 1,812,752 548,695 31,433,601 - 31,433,601
Insurance service expenses:
Incurred claims expenses (5,245,984) (1,286,370) (4,620,493) (924,443) (203,780) (2,270) (544,146) (10,131) (12,837,617) - (12,837,617)
Ammortization of acquisition expenses (2,326,676) (1,047,515) (2,938,084) (975,266) (1,623,451) (63,013) (669,707) (212,507) (9,856,218) - (9,856,218)
Losses/(reversal of losses onerous contracts - - - - - - - - - - -
(7,572,660) (2,333,885) (7,558,577) (1,899,709) (1,827,231) (65,283) (1,213,853) (222,638) (22,693,835) - (22,693,835)
Net Expenses on reinsurance
contracts held
Reinsurance Premium (99,485) (979,879) (2,531,532) (1,435,781) (2,296,870) (33,347) (334,824) (9,482) (7,721,201) - (7,721,201)
Recoveries of incurred claims and
40,338 817,958 2,983,545 835,943 51,891 11,812 489,383 9,657 5,240,526 - 5,240,526
other attributable income
Recoveries/(reversal of recoveries)
- - - - - - - - - - -
on onerous contracts
(59,147) (161,922) 452,013 (599,838) (2,244,980) (21,535) 154,558 175 (2,480,675) - (2,480,675)
Insurance Service result 1,792,297 1,184,583 735,186 486,905 976,956 3,475 753,458 326,233 6,259,091 - 6,259,091
Insurance finance expenses from
(4) (47,000) (102,172) (33,443) (34,488) - (7,729) (718) (225,554) - (225,554)
insurance contracts issued
Insurance finance Income from

2 28,000 64,879 22,813 15,520 - 5,272 490 136,976 - 136,976
201
Total Financial result 1,792,295 1,165,583 697,893 476,275 957,988 3,475 751,001 326,004 6,170,513 - 6,170,513
(b) Insurance Revenue
202
Motor Marine Fire Accident Gas Agriculture ring Bond Parent Health Group
2023 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contracts measured using PAA 16,309,055 4,459,975 11,583,954 4,769,538 10,932,219 82,539 3,123,932 732,785 51,993,998 118,436 52,112,434
Insurance contracts measured using GMM - - - - - - - - - - -
Insurance contracts measured using VFA - - - - - - - - - - -
16,309,055 4,459,975 11,583,954 4,769,538 10,932,219 82,539 3,123,932 732,785 51,993,998 118,436 52,112,434

2022 Restated N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contracts measured using PAA 9,424,104 3,680,389 7,841,750 2,986,452 5,049,166 90,293 1,812,752 548,695 31,433,601 - 31,433,601
Insurance contracts measured using GMM - - - - - - - - - - -
Insurance contracts measured using VFA - - - - - - - - - - -
9,424,104 3,680,389 7,841,750 2,986,452 5,049,166 90,293 1,812,752 548,695 31,433,601 - 31,433,601
(c) Insurance contract liabilities

2023 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Liability for remaining coverage 6,044,617 931,329 3,095,764 811,800 4,033,582 47,288 948,171 289,625 16,202,176 183,054 16,385,229
Liability for Incurred claim 2,052,713 890,875 3,408,619 1,108,033 599,502 7,862 772,878 55,189 8,895,671 4,825 8,900,496
8,097,330 1,822,204 6,504,383 1,919,833 4,633,085 55,150 1,721,048 344,814 25,097,847 187,878 25,285,725

31 December 2022 Restated N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Liability for remaining coverage 2,513,176 702,516 1,599,781 584,805 377,573 64,232 695,564 280,718 6,818,365 - 6,818,365
Liability for Incurred claim 1,687,217 884,972 3,214,670 1,200,425 558,285 1,178 307,248 1,804 7,855,800 - 7,855,800
4,200,393 1,587,488 4,814,451 1,785,230 935,858 65,410 1,002,812 282,522 14,674,165 - 14,674,165

1 January 2022 Restated N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Liability for remaining coverage 1,820,088 873,103 1,047,446 367,757 701,051 11,048 330,115 148,546 5,299,155 - 5,299,155
Liability for Incurred claim 1,300,233 642,658 2,527,327 1,050,102 469,472 3,450 242,689 22,556 6,258,487 - 6,258,487
3,120,321 1,515,761 3,574,773 1,417,860 1,170,523 14,498 572,804 171,102 11,557,642 - 11,557,642
NEM Insurance Plc
(d) Reinsurance contract Assets
2023 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Asset for remaining coverage 34,439 258,252 652,153 293,760 3,496,461 16,096 118,098 64,112 4,933,370 - 4,933,370
Ammount recoverrable from Incurred claim 416,091 538,696 2,201,107 801,401 199,304 4,156 307,513 31,401 4,499,670 - 4,499,670
450,530 796,948 2,853,260 1,095,161 3,695,766 20,252 425,611 95,514 9,433,041 - 9,433,041
NEM Insurance Plc

31 December 2022 Restated N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Asset for remaining coverage 279 188,257 647,225 445,643 431,358 23,764 103,924 2,943 1,843,393 - 1,843,393
Ammount recoverrable from Incurred claim 1,011,426 1,049,870 3,548,952 1,502,700 128,941 547 384,615 2,259 7,629,310 - 7,629,310
1,011,705 1,238,127 4,196,177 1,948,344 560,299 24,310 488,539 5,202 9,472,703 - 9,472,703

1 January 2022 Restated N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Asset for remaining coverage 548 229,498 398,280 138,361 231,485 7,447 204,144 12,004 1,221,767 - 1,221,767
Ammount recoverrable from Incurred claim 1,012,274 826,815 2,434,547 1,376,168 206,652 2,743 318,045 29,560 6,206,804 - 6,206,804
1,012,822 1,056,313 2,832,827 1,514,529 438,137 10,190 522,189 41,564 7,428,571 - 7,428,571
203
NEM Insurance Plc

(e) Reconciliation of Insurance contracts issued per product (Contracts measured under PAA)*
MOTOR
2023 2022 RESTATED
Liability for remaining Liability for Incurred Liability for remaining Liability for Incurred
coverage claims coverage claims
Non-loss Loss Incurred Risk Non-loss Loss Incurred Risk

Parent component component claims adjustment Total component component claims adjustment Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities 2,513,176 - 1,569,692 117,525 4,200,393 1,820,088 - 1,220,307 79,926 3,120,321
as at January 1
Insurance contract assets as
- - - - - - - - - -
of Janaury 1
Net Insurance Contracts as
2,513,176 - 1,569,692 117,525 4,200,393 1,820,088 - 1,220,307 79,926 3,120,321
of Janaury 1
Insurance Revenue (16,309,055) - - - - (9,424,104) - - - (9,424,104)
Insurance Service Expenses: - - - - -
Incurred claims - - 6,854,275 33,529 6,887,804 - - 5,208,385 37,599 5,245,984
Changes that relate to past
- - - - - - - - - -
service-adjustment to LIC
Ammortization of insurance
5,291,188 - - - 5,291,188 2,326,676 - - - 2,326,676
acquisition cashflows
Losses and reversals of loss-
- 199,989 - - 199,989 - - - - -
es on onerous contracts
Total Gross Insurance Ser-
(11,017,868) 199,989 6,854,275 33,529 12,378,981 (7,097,427) - 5,208,385 37,599 (1,851,444)
vice result
Insurance finance expenses - - 82,279 - 82,279 - - 4 - 4

Insurance finance (income)
expenses (Changes in - - - - - - - - - -
discount rates)
- - 82,279 - 82,279 - - 4 - 4
Cash flows in the period: -
Premiums received 20,117,645 - - - 20,117,645 10,215,056 - - - 10,215,056
Insurance acquisition cash
(5,768,325) - - - (5,768,325) (2,424,541) - - - (2,424,541)
flows paid
Claims paid - - (6,604,588) - (6,604,588) - - (4,859,003) - (4,859,003)
Net cash flow 14,349,320 - (6,604,588) - 7,744,732 7,790,515 - (4,859,003) - 2,931,512
Insurance contract liabilities,
5,844,628 199,989 1,901,659 151,054 24,406,385 2,513,176 - 1,569,692 117,525 4,200,393
as at December 31
- - - - - - - - - -
at December 31
5,844,628 199,989 1,901,659 151,054 24,406,385 2,513,176 - 1,569,692 117,525 4,200,393
at December 31
NEM Insurance Plc

MARINE
2023 2022 RESTATED

Parent component component claims adjustment Total component component claims adjustment Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities 702,516 - 834,040 50,932 1,587,488 873,103 - 604,141 38,517 1,515,761
as at January 1
Insurance contract assets
- - - - - - - - - -
as of Janaury 1
702,516 - 834,040 50,932 1,587,488 873,103 - 604,141 38,517 1,515,761
of Janaury 1
Insurance Revenue (4,459,975) - - - (4,459,975) (3,680,389) - - - (3,680,389)
Insurance Service Expens-
es:
Incurred claims - - 1,272,568 14,626 1,287,194 - - 1,273,955 12,415 1,286,370
- - - - - - - - - -
1,523,655 - - - 1,523,655 1,047,514 - - - 1,047,514
Losses and reversals of
- - - - - - - - - -
losses on onerous contracts
Total Gross Insurance
(2,936,320) - 1,272,568 14,626 (1,649,126) (2,632,875) - 1,273,955 12,415 (1,346,505)
Service result
Insurance finance expenses - - 28,657 - 28,657 - - 47,000 - 47,000

expenses (Changes in - - - - - - - - - -
discount rates)
- - 28,657 - 28,657 - - 47,000 - 47,000
(1,573,830) - - - (1,573,830) (1,001,379) - - - (1,001,379)
flows paid
Claims paid - - (1,309,948) - (1,309,948) - - (1,091,056) - (1,091,056)
Net cash flow 3,165,133 - (1,309,948) - 1,855,185 2,462,288 - (1,091,056) - 1,371,232
931,329 - 825,317 65,558 1,822,204 702,516 - 834,040 50,932 1,587,488
as at December 31
Insurance contract assets
- - - - - - - - - -
as at December 31
931,329 - 825,317 65,558 1,822,204 702,516 - 834,040 50,932 1,587,488
at December 31
NEM Insurance Plc

FIRE
2023 2022 RESTATED

component component claims adjustment Total component component claims adjustment Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 1,599,781 - 3,055,325 159,345 4,814,451 1,047,446 - 2,400,152 127,175 3,574,773
at January 1
- - - - - - - - - -
of Janaury 1
Net Insurance Contracts as of
1,599,781 - 3,055,325 159,345 4,814,451 1,047,446 - 2,400,152 127,175 3,574,773
Janaury 1
Insurance Revenue (11,583,953) - - - (11,583,953) (7,841,750) (7,841,750)
Incurred claims - - 3,032,483 91,488 3,123,971 - - 4,588,323 32,170 4,620,493
- - - - - - - - - -
4,526,295 - - - 4,526,295 2,938,084 - - - 2,938,084
Losses and reversals of losses
- - - - - - - - - -
Total Gross Insurance Service
(7,057,659) - 3,032,483 91,488 (3,933,688) (4,903,666) - 4,588,323 32,170 (283,174)
result

expenses (Changes in discount - - - - - - - - - -
rates)
- - 191,373 - 191,373 - - 102,172 - 102,172
(4,910,504) - - - (4,910,504) (3,075,792) - - - (3,075,792)
flows paid
Claims paid - - (3,121,395) - (3,121,395) - - (4,035,322) - (4,035,322)
Net cash flow 8,553,641 - (3,121,395) - 5,432,246 5,456,002 - (4,035,322) - 1,420,680
Insurance contract liabilities, as
3,095,764 - 3,157,786 250,833 6,504,383 1,599,781 - 3,055,325 159,345 4,814,451
at December 31
Insurance contract assets as at
- - - - - - - - - -
December 31
Net Insurance Contracts as at
3,095,764 - 3,157,786 250,833 6,504,383 1,599,781 - 3,055,325 159,345 4,814,451
December 31
NEM Insurance Plc

GENERAL ACCIDENT
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 584,805 - 1,117,894 82,531 1,785,230 367,757 - 980,428 69,675 1,417,860
at January 1
- - - - - - - - - -
of Janaury 1
584,805 - 1,117,894 82,531 1,785,230 367,757 - 980,428 69,675 1,417,860
Janaury 1
Insurance Revenue (4,769,538) - - - (4,769,538) (2,986,452) - - - (2,986,452)
Incurred claims - - 1,747,144 (993) 1,746,150 - - 911,587 12,856 924,443
- - - - - - - - - -
1,779,428 - - - 1,779,428 975,266 - - - 975,266
- - - - - - - - - -
(2,990,109) - 1,747,144 (993) (1,243,959) (2,011,186) - 911,587 12,856 (1,086,743)
result

expenses (Changes in dis- - - - - - - - - - -
count rates)
- - 37,966 - 37,966 - - 33,443 - 33,443
Cash flows in the period: - -
(1,835,905) - - - (1,835,905) (1,030,542) - - - (1,030,542)
flows paid
Claims paid - - (1,876,508) - - - (807,564) - (807,564)

(1,876,508)
Net cash flow 3,217,104 - (1,876,508) - 1,340,596 2,228,234 - (807,564) - 1,420,670
811,800 - 1,026,495 81,538 1,919,833 584,805 - 1,117,894 82,531 1,785,230
as at December 31
- - - - - - - - - -
at December 31
811,800 - 1,026,495 81,538 1,919,833 584,805 - 1,117,894 82,531 1,785,230
December 31
NEM Insurance Plc

OIL & GAS

2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 377,573 - 513,888 44,397 935,858 701,051 - 432,036 37,436 1,170,523
at January 1
- - - - - - - - - -
of Janaury 1
377,573 - 513,888 44,397 935,858 701,051 - 432,036 37,436 1,170,523
Janaury 1
Insurance Revenue (10,932,219) - - - (5,049,166) - - - (5,049,166)

(10,932,219)
Incurred claims - - 494,792 (281) 494,511 - - 196,819 6,961 203,780
- - - - - - - - - -
4,384,366 - - - 4,384,366 1,623,451 - - - 1,623,451
Losses and reversals of losses
- - - - - - - - - -
(6,547,853) - 494,792 (281) (6,053,341) (3,425,716) - 196,819 6,961 (3,221,935)
result

expenses (Changes in discount - - - - - - - - - -
rates)
- - 39,104 - 39,104 - - 34,488 - 34,488

(4,851,069) - - - (4,851,069) (1,663,036) - - - (1,663,036)
flows paid
Claims paid - - (492,398) - (492,398) - - (149,455) - (149,455)
Net cash flow 10,203,863 - (492,398) - 9,711,464 3,102,237 - (149,455) - 2,952,782
Insurance contract liabilities, as
4,033,582 - 555,386 44,116 4,633,085 377,573 - 513,888 44,397 935,858
at December 31
Insurance contract assets as at
- - - - - - - - - -
December 31
4,033,582 - 555,386 44,116 4,633,085 377,573 - 513,888 44,397 935,858
December 31
NEM Insurance Plc

AGRICULTURE
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 64,232 - 1,093 85 65,410 11,048 - 3,226 224 14,498
at January 1
- - - - - - - - - -
of Janaury 1
64,232 - 1,093 85 65,410 11,048 - 3,226 224 14,498
Janaury 1
Insurance Revenue (82,539) - - - (82,539) (90,293) - - - (90,293)
Incurred claims - - 18,061 494 18,554 - - 2,409 (139) 2,270
- - - - - - - - - -
22,454 - - - 22,454 63,013 - - - 63,013
- - - - - - - - - -
(60,085) - 18,061 494 (41,531) (27,280) - 2,409 (139) (25,010)
result
Insurance finance expenses - - 74 - 74 - - - - -

count rates)
- - 74 - 74 - - - - -
Premiums received 62,913 - - - 62,913 152,756 - - - 152,756
(19,772) - - - (19,772) (72,292) - (4,542) - (76,834)
flows paid
Claims paid - - (11,944) - (11,944) - - - - -
Net cash flow 43,141 - (11,944) - 31,198 80,464 - (4,542) - 75,922
47,288 - 7,284 579 55,150 64,232 - 1,093 85 65,410
as at December 31
- - - - - - - - - -
at December 31
47,288 - 7,284 579 55,150 64,232 - 1,093 85 65,410
December 31
NEM Insurance Plc

ENGINEERING
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 695,564 - 286,124 21,124 1,002,812 330,115 226,586 16,103 572,804
at January 1
- - - - - - - - - -
of Janaury 1
695,564 - 286,124 21,124 1,002,812 330,115 - 226,586 16,103 572,804
Janaury 1
Insurance Revenue (3,123,932) - - - (1,812,752) - - - (1,812,752)

(3,123,932)
Insurance Service Expenses: - -
Incurred claims - - 1,218,640 35,751 1,254,391 - - 539,125 5,021 544,146
- - - - - - - - - -
1,190,754 - - - 1,190,754 669,707 - - - 669,707
- - - - - - - - - -
(1,933,178) - 1,218,640 35,751 (678,787) (1,143,045) - 539,125 5,021 (598,899)
result

count rates)
- - 9,717 - 9,717 - - 7,729 - 7,729
(1,287,009) - (798,478) - (759,324) - - - (759,324)
flows paid (2,085,488)
Claims paid - - - - - - - (487,316) - (487,316)
Net cash flow 2,185,785 - (798,478) - 1,387,306 1,508,494 - (487,316) - 1,021,178
948,171 - 716,003 56,874 1,721,048 695,564 - 286,124 21,124 1,002,812
as at December 31
- - - - - - - - - -
at December 31
948,171 - 716,003 56,874 1,721,048 695,564 - 286,124 21,124 1,002,812
December 31
NEM Insurance Plc

BOND
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as 280,718 - 1,680 124 282,522 148,546 21,060 1,497 171,102
at January 1
- - - - - - - - - -
of Janaury 1
280,718 - 1,680 124 282,522 148,546 - 21,060 1,497 171,102
Janaury 1
Insurance Revenue (732,785) - - - (732,785) (548,695) - - - (548,695)
Incurred claims - - 115,083 3,937 119,021 - - 11,503 (1,373) 10,131
- - - - - - - - - -
266,642 - - - 266,642 212,507 - - - 212,507
- - - - - - - - - -
(466,144) - 115,083 3,937 (347,123) (336,188) - 11,503 (1,373) (326,057)
result
Insurance finance expenses - - 57 - 57 - - 718 - 718

count rates)
- - 57 - 57 - - 718 - 718
Premiums received 743,919 - - - 743,919 713,909 - - - 713,909
(268,868) - - - (268,868) (245,550) - - - (245,550)
flows paid
Claims paid - - (65,693) - (65,693) - - (31,601) - (31,601)
Net cash flow 475,051 - (65,693) - 409,357 468,360 - (31,601) - 436,759
289,625 - 51,128 4,061 344,814 280,718 - 1,680 124 282,522
as at December 31
- - - - - - - - - -
at December 31
289,625 - 51,128 4,061 344,814 280,718 - 1,680 124 282,522
December 31
NEM Insurance Plc

Health
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Insurance contract liabilities as - - - - - - - - -

at January 1
- - - - - - - - - -
of Janaury 1
- - - - - - - - - -
Janaury 1
Insurance Revenue (118,436) - - - (118,436) - - - - -
Incurred claims - - 97,559 - 97,559 - - - - -
- - - - - - - - - -
5,047 - - - 5,047 - - - - -
- - - - - - - - - -
(113,389) - 97,559 - (15,830) - - - - -
result
Insurance finance expenses - - - - - - - - - -

count rates)
- - - - - - - - - -
Premiums received 301,490 - - - 301,490 - - - - -
(5,047) - - - (5,047) - - - - -
flows paid
Claims paid - - (92,734) - (92,734) - - - - -
Net cash flow 296,442 - (92,734) - 203,708 - - - - -
183,054 - 4,825 - 187,878 - - - - -
as at December 31
- - - - - - - - - -
at December 31
183,054 - 4,825 - 187,878 - - - - -
December 31
*
All the Group’s insurance contracts issued are measured using the Premium Allocation approach
NEM Insurance Plc

(f) Reconciliation of Reinsurance contracts held per product (Contracts measured under PAA)*
MOTOR
2023 2022 RESTATED
Assets for remaining Ammount Recoverable Assets for remaining Ammount Recoverable
coverage on Incurred claims coverage on Incurred claims

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 279 - 963,692 47,734 1,011,705 548 - 971,663 40,612 1,012,822
as of January 1
Reinsurance contract liabilities
- - - - - - - - - -
as of January 1,
Net Reinsurance contracts as
279 - 963,692 47,734 1,011,705 548 - 971,663 40,612 1,012,822
of January 1,
Reinsurance expenses (1,027) - - - (1,027) (99,485) - - - (99,485)
- - - - - - - - - -
Effect of changes in the risk of
- - - - - - - - - -
reinsurance non-performance
Ammounts recoverred from
reinsurance:
Recoveries of incurred claims
- - (618,989) (17,114) (636,104) - - 33,216 7,122 40,338
and other attributable income
Recoveries and reversals
of recoveries on onerous - 33,014 - - 33,014 - - - - -
contracts
(1,027) 33,014 (618,989) (17,114) (604,116) (99,485) - 33,216 7,122 (59,147)
Insurance Finance Income - - 40,769 - 40,769 - - 2 - 2

Insurance finance reserve
- - - - - - - - - -
(changes in discount rate)
- - 40,769 - 40,769 - - 2 - 2
Reinsurance premiums paid
2,172 - - - 2,172 99,216 - - - 99,216
net of commission received
Ammounts received under
- - - - - - - (41,188) - (41,188)
Net cash flow 2,172 - - - 2,172 99,216 - (41,188) - 58,028
Reinsurance contracts assets
1,424 33,014 385,472 30,619 450,530 279 - 963,692 47,734 1,011,705
as of December 31,
- - - - - - - - -
as of December 31,
1,424 33,014 385,472 30,619 450,530 279 - 963,692 47,734 1,011,705
NEM Insurance Plc

MARINE
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 188,257 - 1,017,790 32,080 1,238,127 229,498 - 804,002 22,813 1,056,313
as of January 1
- - - - - - - - - -
as of January 1,
188,257 - 1,017,790 32,080 1,238,127 229,498 - 804,002 22,813 1,056,313
of January 1,
Reinsurance expenses (1,616,739) (979,879) - - - (979,879)

(1,616,739)
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 1,078,271 7,561 1,085,832 - - 808,690 9,268 817,958
of recoveries on onerous - - - - - - - - - -
contracts
(1,616,739) - 1,078,271 7,561 (530,907) (979,879) - 808,690 9,268 (161,921)
Insurance Finance Income - - 17,986 - 17,986 - - 28,000 - 28,000

- - - - - - - - - -
- - 17,986 - 17,986 - - 28,000 - 28,000
1,686,734 - - - 1,686,734 938,638 - - - 938,638
- - (1,614,992) - - - (622,902) - (622,902)
reinsurance contracts held (1,614,992)
Net cash flow 1,686,734 - (1,614,992) - 71,742 938,638 - (622,902) - 315,736
258,252 - 499,054 39,642 796,948 188,257 - 1,017,790 32,080 1,238,127
as of December 31,
- - - - - - - - - -
as of December 31,
258,252 - 499,054 39,642 796,948 188,257 - 1,017,790 32,080 1,238,127
NEM Insurance Plc

FIRE
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 647,225 - 3,409,974 138,978 4,196,177 398,280 - 2,338,630 95,918 2,832,827
as of January 1
- - - - - - - - - -
as of January 1,
647,225 - 3,409,974 138,978 4,196,177 398,280 - 2,338,630 95,918 2,832,827
of January 1,
Reinsurance expenses (3,416,249) - - - (3,416,249) (2,531,532) - - - (2,531,532)
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 1,222,996 22,997 1,245,993 - - 2,940,485 43,060 2,983,545
contracts
(3,416,249) - 1,222,996 22,997 (2,170,257) (2,531,532) - 2,940,485 43,060 452,013

- - - - - - - - - -
- - 131,490 - 131,490 - - 64,879 - 64,879
3,421,177 - - - 3,421,177 2,780,477 - - - 2,780,477
- - (2,725,328) - (2,725,328) - - (1,934,020) - (1,934,020)
Net cash flow 3,421,177 - (2,725,328) - 695,850 2,780,477 - (1,934,020) - 846,457
652,153 - 2,039,132 161,975 2,853,260 647,225 - 3,409,974 138,978 4,196,177
as of December 31,
- - - - - - - - - -
as of December 31,
652,153 - 2,039,132 161,975 2,853,260 647,225 - 3,409,974 138,978 4,196,177
NEM Insurance Plc

GENERAL ACCIDENT
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets

445,643 - 1,450,321 52,379 1,948,344 138,361 - 1,334,078 42,089 1,514,529
as of January 1
- - - - - - - - - -
as of January 1,
445,643 - 1,450,321 52,379 1,948,344 138,361 - 1,334,078 42,089 1,514,529
of January 1,
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 580,003 6,594 586,597 - - 825,653 10,290 835,943
contracts
(1,587,320) - 580,003 6,594 (1,000,723) (1,435,781) - 825,653 10,290 (599,838)

- - - - - - - - - -
- - 29,177 - 29,177 - - 22,813 - 22,813
1,435,437 - - - 1,435,437 1,743,063 - - - 1,743,063
- - (1,317,074) - (1,317,074) - - (732,223) - (732,223)
Net cash flow 1,435,437 - (1,317,074) - 118,363 1,743,063 - (732,223) - 1,010,840
293,760 - 742,427 58,973 1,095,161 445,643 - 1,450,321 52,379 1,948,344
as of December 31,
- - - - - - - - - -
as of December 31,
293,760 - 742,427 58,973 1,095,161 445,643 - 1,450,321 52,379 1,948,344
NEM Insurance Plc

OIL & GAS

2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 431,358 - 121,856 7,085 560,299 231,485 - 194,416 12,235 438,137
as of January 1
- - - - - - - - - -
as of January 1,
431,358 - 121,856 7,085 560,299 231,485 - 194,416 12,235 438,137
of January 1,
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 54,829 7,581 62,411 - - 57,041 (5,150) 51,891
contracts
(8,304,177) - 54,829 7,581 (8,241,766) (2,296,870) - 57,041 (5,150) (2,244,979)

- - - - - - - - -
- - 7,953 - 7,953 - - 15,520 - 15,520
11,369,280 - - - 2,496,743 - - - 2,496,743
net of commission received 11,369,280
- - - - - - - (145,122) - (145,122)
Net cash flow 11,369,280 - - - 11,369,280 2,496,743 - (145,122) - 2,351,621
3,496,461 - 184,638 14,666 3,695,766 431,358 - 121,856 7,085 560,299
as of December 31,
- - - - - - - - - -
as of December 31,
3,496,461 - 184,638 14,666 3,695,766 431,358 - 121,856 7,085 560,299
NEM Insurance Plc

AGRICULTURE
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 23,764 - 516 31 24,310 7,447 - 2,581 162 10,190
as of January 1
- - - - - - - - - -
as of January 1,
23,764 - 516 31 24,310 7,447 - 2,581 162 10,190
of January 1,
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 12,166 275 12,441 - - 11,943 (131) 11,812
contracts
(27,674) - 12,166 275 (15,232) (33,347) - 11,943 (131) (21,535)
Insurance Finance Income - - 35 - 35 - - - - -

- - - - - - - - - -
- - 35 - 35 - - - - -
20,006 20,006 49,664 - - - 49,664
(8,866) (8,866) - - (14,008) - (14,008)
Net cash flow 20,006 - (8,866) - 11,139 49,664 - (14,008) - 35,656
16,096 - 3,850 306 20,252 23,764 - 516 31 24,310
as of December 31,
- - - - - - - - - -
as of December 31,
16,096 - 3,850 306 20,252 23,764 - 516 31 24,310
NEM Insurance Plc

ENGINEERING
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 103,924 - 371,208 13,406 488,539 204,144 - 308,318 9,727 522,189
as of January 1
- - - - - - - - - -
as of January 1,
103,924 - 371,208 13,406 488,539 204,144 - 308,318 9,727 522,189
of January 1,
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 611,956 9,223 621,179 - - 485,704 3,679 489,383
contracts
(826,002) - 611,956 9,223 (204,823) (334,824) - 485,704 3,679 154,558

- - - - - - - - - -
- - 7,468 - 7,468 - - 5,272 - 5,272
840,176 - - - 840,176 234,605 - - - 234,605
- - (705,749) - (705,749) - - (428,086) - (428,086)
Net cash flow 840,176 - (705,749) - 134,427 234,605 - (428,086) - (193,480)
118,098 - 284,884 22,629 425,611 103,924 - 371,208 13,406 488,539
as of December 31,
- - - - - - - - - -
as of December 31,
118,098 - 284,884 22,629 425,611 103,924 - 371,208 13,406 488,539
NEM Insurance Plc

BOND
2023 2022 RESTATED

N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Reinsurance contract assets 2,943 - 2,180 79 5,202 12,004 - 28,656 904 41,564
as of January 1
- - - - - - - - - -
as of January 1,
2,943 - 2,180 79 5,202 12,004 - 28,656 904 41,564
of January 1,
- - - - - - - - - -
- - - - - - - - - -
reinsurance:
- - 40,370 2,232 42,602 - - 10,483 (825) 9,657
contracts
(70,252) - 40,370 2,232 (27,650) (9,482) - 10,483 (825) 175
Insurance Finance Income - - 44 - 44 - - 490 - 490

- - - - - - - - - -
- - 44 - 44 - - 490 - 490
131,421 - - - 131,421 421 - - - 421
- - (13,504) - (13,504) - - (37,449) - (37,449)
Net cash flow 131,421 - (13,504) - 117,918 421 - (37,449) - (37,028)
64,112 - 29,091 2,311 95,514 2,943 - 2,180 79 5,202
as of December 31,
- - - - - - - - - -
as of December 31,
64,112 - 29,091 2,311 95,514 2,943 - 2,180 79 5,202
All the Group’s insurance contracts issued are measured using the Premium Allocation approach
NEM Insurance Plc

48 Claim Development Table

Extracts from EY Nigeria Limited Valuation Report
48.1 Data Reconciliation

As part of our verification process, we have reconciled the gross written premium and the claims paid in the
technical data, with the figures indicated in the financial accounts. We illustrate both set of figures below.
Gross Claims Paid Gross Claims Paid Gross Claims Paid
Data Data Data
(a) Claims Data N’000 N’000 N’000
Class of Business
Fire 3,910,233 3,910,233 0%
General Accident 2,060,446 2,060,446 0%
Engineering 813,530 813,530 0%
Bond 72,293 72,293 0%
Marine 1,346,001 1,346,001 0%
Motor 6,862,673 6,862,673 0%
Oil & gas 492,399 492,398 0%
Agriculture 11,944 11,944 0%
Total 15,569,519 15,569,519 0%
Gross Premium Gross Premium Precentage

Written Data Written Account Difference
(b) Premium Data N’000 N’000 N’000
Class of Business
Fire 13,464,145 13,464,145 0%
General Accident 5,053,009 5,053,009 0%
Engineering 3,472,794 3,472,794 0%
Bond 743,919 743,919 0%
Marine 4,738,962 4,738,962 0%
Motor 20,117,645 20,117,645 0%
Oil & gas 15,054,932 15,054,932 0%
Agriculture 62,913 62,913 0%
Total 62,708,320 62,708,320
(c) Comments on Claims Data

The claims data was divided into six risk groups - (Marine, Motor, Fire, General Accident, Engineering, Bond,
Agriculture and Oil & Gas) in accordance with the Nigerian Insurance Act 2003.
(d) Business Trend

We illustrate in the table below, the Gross Written Premium as at 31 December 2023 and 2022 respectively. All
lines of business experienced increases and there was an overall increase in GWP by 20%.
NEM Insurance Plc

Gross Premium Gross Premium Precentage

Written Data Written Account Difference
N’000 N’000 N’000
Class of Business
Fire 13,464,145 8,531,794 58%
General Accident 5,053,009 6,240,504 -19%
Engineering 3,472,794
Bond 743,919
Marine 4,738,962 3,463,667 37%
Motor 20,117,645 10,215,056 97%
Oil & gas 15,054,932 4,765,273 216%
Agriculture 62,913 152,756 -59%
Total 62,708,320 33,369,050 88%
48.2 Valuation Methodology

We describe in this section the methods used for calculating Premium and Claim Reserve.
(a) Liability for Remaining Coverage (LRC)
i Our reserves consist of Advance Premium (AP), Unexpired Risk Reserve (URR), Deferred Acquisition Cost
(DAC) and Additional Unexpired Risk Reserve(AURR), which are all described in section 2.
ii We adopted the 365th (time apportionment) method. Each policy’s unexpired insurance period (UP) was
calculated as the exact number of days of insurance cover available after the valuation date. The UPR is
calculated as the premium *(UP)/ full policy duration.
iii Each policy’s URR= AP* Assumed Loss Ratio. Typically, the Advanced Premium is expected to cover the
unexpired risk. Where the unexpired risk exceeds the advanced premium then the portfolio is considered
onerous, and a loss component is held as described in section 2.
(b) Claims Reserves

The claim reserves comprise of:
i Outstanding Claims Reported (OCR)
ii Incurred But Not Reported (IBNR)
Reserving method
We present the methodologies that were used in calculating for the IBNR reserves:
i Inflation AdjustedBasic Chain Ladder Method (IABCL)

ii Bornhuetter-Ferguson Approach
iii Loss Ratio
iv Frequency and Severity Method
NEM Insurance Plc

48.3 Valuation Results

(a) Inflation Adjusted Chain Ladder Method - Result table
Discounted Inflation Adjusted Basic Chain Ladder Method
LIC ARIC Net

N’000 N’000 N’000
Class of Business
General Accident 1,026,496 (801,401) 225,094
Fire 3,157,786 (2,201,107) 956,679
Marine 825,317 (538,696) 286,621
Motor 1,901,659 (416,091) 1,485,567
Agriculture 7,284 (4,156) 3,128
Oil and Gas* 555,386 (199,304) 356,082
Engineering 716,003 (307,513) 408,490
Bond 51,127 (31,401) 19,726
Total 8,241,058 (4,499,671) 3,741,388
Accounts (Outstanding Claims) 2,531,091 (1,562,998) 968,094
Difference 5,709,967 (2,936,673) 2,773,294
* Estimated using Expected loss ratio method and discounted
LIC(PVFCF) LIC(RA) LIC

(b) LIC Table N’000 N’000 N’000
Class of Business
General Accident 1,026,496 81,538 1,108,033
Fire 3,157,786 250,833 3,408,619
Marine 825,317 65,558 890,875
Motor 1,901,659 151,055 2,052,714
Agriculture 7,284 579 7,862
Oil and Gas 555,386 44,116 599,502
Engineering 716,003 56,874 772,878
Bond 51,127 4,061 55,189
Total 8,241,058 654,614 8,895,672
NEM Insurance Plc

ARIC(PVFCF) ARIC(RA) ARIC

(c) Amount Recoverable for incurred Claims Table N’000 N’000 N’000
Class of Business
General Accident 742,428 58,973 801,401
Fire 2,039,132 161,975 2,201,107
Marine 499,054 39,642 538,696
Motor 385,472 30,619 416,091
Agriculture 3,850 306 4,156
Oil and Gas 184,638 14,666 199,304
Engineering 284,884 22,629 307,513
Bond 29,091 2,311 31,401
Total 4,168,549 331,121 4,499,671
LRC ARC NET

(d) Liability for Remaining Coverage(Gross and N’000 N’000 N’000
Reinsurance LRC)-Result Table
Class of Business
General Accident 811,800 293,760 518,040
Fire 3,095,764 652,153 2,443,611
Marine 931,329 258,252 673,077
Motor 5,844,628 1,424 5,843,204
Agriculture 47,288 16,096 31,192
Oil and Gas 4,033,582 3,496,461 537,121
Engineering 948,171 118,098 830,073
Bond 289,625 64,112 225,513
Total 16,002,186 4,900,356 11,101,830
(e) Liability for Remaining Coverage-Loss component

We derived our expense ratio as the average of the management expense ratio for the current year using the
information provided by NEM Insurance Plc. The Claims Ratio was estimated as the average of the projected
ultimate loss ratio over a period of 4 years for each line of business. The computed Risk adjustment margin of
7.94% then added to the individual averages below.
Claims Ratio Combined Ratio LRC(LC)
Gross Table N’000
Class of Business
General Accident 42% 75% -
Fire 66% 97% -
Marine 36% 64% -
Motor 74% 103% 199,989
Agriculture 31% 51% -
Oil and Gas 17% 54% -
Engineering 45% 71% -
Bond 42% 84% -
199,989
NEM Insurance Plc

Recovery ratio ARC(LC)

Reinsurance Table N’000
Class of Business
General Accident 91% -
Fire 54% -
Marine 101% -
Motor 17% 33,014
Agriculture 79% -
Oil and Gas 39% -
Engineering 28% -
Bond 16% -
33,014
48.4 Conclusion
We are adopting the reserves from the Inflation Adjusted Discounted Chain Ladder method in this report. This
method as indicated earlier
i - anticipates that total claim payments may be exposed to future inflationary pressures
ii - recognises that reserves should represent the present value and timing of future claim payments
Technical Reserves
We are reporting Gross Reserves of N25.1 billion and Reinsurance Contract Assets of N9.4 billion as shown in
the table below. Our estimates meet the Liability Adequacy Test.
Reinsurance
Gross Contract Assets Net
Reserves N’000 N’000 N’000
Incurred Claims 8,895,672 (4,499,671) 4,396,002

Remaining Coverage(Excluding Loss
16,002,186 (4,900,356) 11,101,830
component)
Remaining Coverage(Loss component) 199,989 (33,014) 166,975
Total 25,097,848 (9,433,041) 15,664,807
48.5 Estimates of undiscounted gross cumulative claims
The table below illustrates how estimates of cumulative claims for the Group’s non life segment have developed over time on a gross and net
226
of reinsurance basis.
Each table shows how the Group’s estimates of total claims for each accident year have developed over time.

Gross of reinsurance
In thousands of Naira 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TOTAL
At end of Accident year 1,373,550 1,769,518 2,009,460 2,080,635 3,975,782 3,557,512 3,155,703 4,424,843 6,598,137 6,487,979 35,433,118
One year later 2,124,796 2,479,055 3,481,118 2,909,246 5,062,112 5,339,867 6,008,979 6,036,794 9,844,893 - 43,286,861
Two years Later 2,197,777 2,670,985 3,550,923 3,071,510 5,597,941 6,058,301 6,219,689 6,504,849 - - 35,871,974
Three years Later 2,281,952 2,702,216 3,600,656 3,509,909 5,936,533 6,172,561 6,346,003 - - - 30,549,830
Four years Later 2,294,853 2,710,514 3,656,276 3,706,584 5,956,338 6,209,330 - - - - 24,533,894
Five years Later 2,298,198 2,720,847 3,844,713 3,712,463 6,035,773 - - - - - 18,611,994
Six years Later 2,301,252 2,748,507 3,847,379 3,725,538 - - - - - - 12,622,676
Seven years Later 2,329,747 2,748,507 3,981,399 - - - - - - - 9,059,653
Eight years Later 2,329,785 2,751,585 - - - - - - - - 5,081,371

Nine years Later 2,329,785 - - - - - - - - - 2,329,785
Net of reinsurance
In thousands of Naira 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TOTAL
At end of Accident year 1,149,976 542,747 1,370,846 1,335,378 2,613,094 1,382,750 2,572,887 1,624,200 1,818,724 4,485,520 18,896,121
One year later 1,688,402 251,639 755,227 476,108 1,426,495 2,797,301 2,705,374 1,170,955 2,789,943 - 14,061,442
Two years Later 1,751,683 308,039 678,955 232,115 1,807,252 2,869,297 2,775,172 1,614,495 - - 12,037,008
Three years Later 1,834,058 296,508 688,877 637,150 1,537,744 2,975,076 2,339,285 - - - 10,308,697
Four years Later 1,846,959 283,200 744,497 380,830 1,538,631 3,008,663 - - - - 7,802,781
Five years Later 1,850,305 293,533 782,387 383,355 1,427,024 - - - - - 4,736,603
Six years Later 1,853,358 277,334 784,874 393,938 - - - - - - 3,309,504
Seven years Later 1,855,101 277,334 918,610 - - - - - - - 3,051,045
Eight years Later 1,853,184 280,413 - - - - - - - - 2,133,597
Nine years Later 627,239 - - - - - - - - - 627,239
NEM Insurance Plc
NEM Insurance Plc

49 Financial Risk Management Policy

Management of insurance and financial risk
NEM Insurance Plc issues contracts that transfer insurance risk or financial risk or both. This section summarizes
these risks and the way the Company manages them.
49.1 Insurance risk

The risk, under any insurance contract, is the possibility that the insured event occurs and the uncertainty of
the amount of the resulting claim. By the very nature of an insurance contract, this risk is random and therefore
unpredictable. The Company manages its insurance risk by means of established internal procedures that
include underwriting authority levels, pricing policy, approved reinsurers list and monitoring.
NEM is exposed to underwriting risk through the insurance contracts that are underwritten. The risks within
the underwriting risk category are associated with both the perils covered by the specific lines of insurance
including General Accident, Motor, Fire, Marine and Aviation, Oil and Gas and Miscellaneous insurance, as
well as the specific processes associated with the conduct of the insurance business. The various subsets of
underwriting risks are listed below;
i Underwriting Process Risk: risk from exposure to financial losses related to the selection and acceptance of
risks to be insured.
ii Mispricing Risk: risk that insurance premiums will be too low to cover the Company’s expenses related to
underwriting, claims, claims handling and administration.
iii Individual risk: This includes the identification of the risk inherent in an insured property (movable or unmovable),
we shall ensure surveys are performed and reviewed as at when due and that risks are adequately priced.
iv Claims Risk (for each peril): Risk that many more claims occur than expected or that some claims that occur
are much larger than expected claims resulting in unexpected losses to the Company. The underwriting risk
assessment shall also determine the likelihood of a claim arising from an insured risk by considering various
factors and probabilities, determined by information obtained from the insured party, historical information on
similar risks and available external data.
v Concentration risk (including geographical risk): This includes identification of the concentration of risks insured
by NEM. NEM utilizes data analysis, software and market knowledge to determine the concentration of its risks
by insurance class, geographic location, exposure to a client or business. The assessment of the concentration
risk is consistent with the overall risk appetite as established by the Company.
Underwriting Risk Appetite

•• The following statements amongst others shall underpin NEM’s underwriting risk appetite:
•• We do not underwrite risks which we do not understand;
•• We are cautious in underwriting unquantifiable risks;
•• We are extremely cautious in underwriting risk observed to poorly managed at proposal state e.g. those with
low safety standards, shoddy construction or businesses with excessively high risk profile;
•• We carefully evaluate businesses or opportunities that could create systemic risk exposures i.e. incidents of
multiple claims occurring from one event e.g. natural catastrophe risks, and risks dependent on the macro-
economic environment);
•• We consider all applicable regulatory guidelines while carrying out our underwriting activities;
NEM Insurance Plc

•• We established and adhere to internal standards for co-insurance, reinsurance transactions;

•• We exercise extreme caution when underwriting discrete (one-off) risks, particularly where we do not have the
requisite experience or know-how;
•• Where the broker has inadequate knowledge of the trade of the client or the class of business, we exercise
caution in taking on such risks into our books;
•• We exercise extreme prudence and caution when dealing with clients with financial difficulties or poor payment
records; and with transient clients who change insurers regularly; and
•• We ensure compliance with NAICOM’s guideline on KYC for consistency.
49.2 Underwriting Strategy

The Company has developed its insurance underwriting strategy to diversify the type of insurance risks accepted
and within each of these categories to achieve a sufficiently large population of risks to reduce the variability of
the expected outcome. Any risks exceeding the underwriting limits require Head Office approval. Factors that
aggravate insurance risk include lack of risk diversification in terms of type and amount of risk, geographical
location and type of industry covered. The Company manages these risks through its underwriting strategy,
adequate reinsurance arrangements and proactive claims handling. Underwriting limits are in place to enforce
appropriate risk selection criteria. For example, the Company has the right not to renew individual policies, it
can impose deductibles and it has the right to reject the payment of a fraudulent claim. Insurance contracts
also entitle the Company to pursue third parties for payment of some or all costs (for example, subrogation).
49.3 Products and Services

NEM Insurance Plc is presently operating as a non-life insurance company and we have a wide range of
insurance products and services that are tailored to meet the specific needs of the company’s clients.
Insurance contracts are issued on an annual contract either directly to the customer or through accredited
insurance brokers and agents. Premiums from brokers and agents are payable within 30 days, whereas from
direct customers immediately. The following is a broad spectrum of the products and services the company is
offering:
Fire/Extraneous Perils Policy

This type of policy will provide indemnity to the insured in the event of loss or damage to property covered under
it as a direct result of fire outbreak, lightning or explosion. Other extraneous perils such as social disturbances
like strike and riot, and natural disasters like storm damage, flood and earthquake can also be covered by an
extension of the standard scope of the cover. The items to be insured are usually made up of the following:
a) Buildings
b) Office Furniture, Electrical & Electronic Equipment
c) Plant and Machinery
d) Stock of Raw Materials and finished goods
e) Loss of Annual Rent for alternative accommodation.
The policy also contains various other extensions that are granted at no extra cost to the policyholder. The
replacement cost of the items to be insured will have to be supplied to us for assessment to facilitate quotation
of the premium payable.
Consequential Loss Policy

This type of policy, often referred to as “business interruption insurance” is designed to indemnify the insured
against loss of productive capacity or future earning power which may occur as a result of loss or damage to
the premises and property insured under the Fire/Extraneous Perils in 1 above. This policy is normally taken
out in conjunction with the Fire Policy so that when the latter pays for the material damage to property insured
NEM Insurance Plc

under it, this will pick up the intangible loss that will flow from the primary loss of the Fire perils. The items usually
covered under this policy are as follows:
a)Gross Profit
b)Salary and Wages
c)Auditor’s fees
The sum insured to be indicated against the items of Gross Profit should represent the difference in turnover
and the total of standing and variable charges. The sum insured on Salary and Wages will be that which is
required to maintain some key staff pending resumption of business while the sum insured on Auditor’s Fees
will represent charges that any firm of accountants will make in preparing papers for insurance claim.
Burglary/Housebreaking Policy
This type of policy is designed to indemnify the insured against loss or damage resulting from theft or attempted
theft which is accompanied by actual forcible or violent entry into or out of the premises or any attempt theft.
The items usually covered under this policy are similar to those under the Fire/Extraneous Perils policy above
with the exception of Buildings and Loss of Rent. The replacement cost of the relative items would have to be
supplied to enable us submit our quotation.
Fidelity Guarantee Policy

This is a form of policy that protects an organization against loss of money or valuable stock as a result of
dishonesty or fraudulent activity of employees. It is possible to grant cover on named basis, positions basis or
on a blanket basis. In any of these cases, the number of persons and the limit of guarantee any one loss would
be advised as well as aggregate amount of guarantee in a given year. Once we have this information, we would
be in a position to quote for premium payable.
Public Liability Policy

This policy also covers the insured against legal liability to third party for cost and expenses incurred in respect
of accidental death, bodily injury and accidental damage to property occurring within the insured’s premises or
at work-away premises. The vicarious liability of the insured’s employee can also be covered provided it arose
in the course of carrying out his official duties. The Company usually require the insured to indicate the limit of
cover required to enable her advise the premium payable.
Money Policy
This is another type of All Risks policy which is designed to cover any fortuitous event that could result in the
loss of cash while in the course of transit either to or from the bank. The cover will also operate while the money
is on the premises of the insured and while in a securely locked safe. The policy can also be extended to cover
cash in the personal custody of selected management staff.
Goods in Transit Policy

This is also an “All Risks” policy covering goods being carried from one location to another. Any loss not
specifically excluded under the policy is covered and the insurance is suitable for any organization that is
engaged in movement of goods either by road or rail and the cover will operate when the goods are being
conveyed by the insured’s owned or hired vehicles. Losses arising from Fire and Theft are covered under this
policy.
NEM Insurance Plc

Group Personal Accident Policy

This type of policy is designed to foster the welfare of employees as well as reduce the financial constrain that
an organization could undergo in the event of death or bodily injury to a member of staff arising as a result of any
injury sustained through accidental, violent, external and visible means. The policy provides a world-wide cover
on 24 hours basis and benefits payable in respect of Death and Permanent Disability are usually expressed as
multiple of salaries. Cover also extends to pay weekly benefit in the event of temporary total disability resulting
from bodily injury to the insured person as well as certain allowance for expenses incurred on medical treatment
as a result of accidental injury. Death or injuries from natural causes are however not covered.
Motor Insurance Policy

This class of insurance is made compulsory by Government through the legislation known as the Motor Vehicle
(Third Party) Insurance Act of 1945. Third Party Only cover which is the minimum type of insurance legislated
upon provides indemnity to policyholder against legal liability to Third Parties for death, bodily injury and property
damage.
The most popular type of cover under this policy is comprehensive insurance which, in addition to the cover
provided under the Third Party Only, will also indemnify the policyholder for loss or damage to the vehicle
resulting from road accident, fire and theft. The premium payable for the various forms of cover under this
policy is regulated by a statistical table of rate known as “tariff” which is approved by Government.
Marine Policies
CARGO: The policy issued here is to provide indemnity for loss or damage to imported goods being conveyed
by sea or air. The All Risks type of cover known as Clauses “”A”” provides indemnity to the insured in the event
of total or partial loss of the goods while the restricted cover known as Clauses “”C”” would provide indemnity
in the event of total loss only. To enable us determine the premium payable in this regard, we would require
information on the nature and value of goods being imported as well as the type of cover required.
HULL: This type of policy is issued on vessels and yachts to provide indemnity for any loss, damage or liability
that may arise from their use. The scope of cover provided is either an “all risks” or “total loss only” while the
policy usually carries a deductible of about 10% of the value of the vessel or yacht.
Aviation Policy
This policy provides comprehensive cover against loss or damage to insured aircraft while operating anywhere
in the world. Cover also extends to include the operator’s legal liability to Third Parties for death, bodily
injury and property damage. Liability to passengers is also covered up to a certain limit selected. In order to
ensure full protection for our clients, we reinsure as much as 90% of this type of risk in the London Aviation
Market through one of our overseas associates. The essence of this arrangement is to obviate the problem of
absorption in the Nigerian Market which has limited capacity for Aviation Insurance and also to afford our clients
the opportunity of having a dollar/sterling based insurance policy.
Machinery Breakdown Policy

This policy is designed to cover any damage to a plant or equipment while working or at rest, or being dismantled
for the purpose of cleaning, repairing or overhauling. In the same vein, boiler and pressure vessels can be
covered under a separate but similar policy.

Electronic Equipment Policy
This policy is designed to cover any loss or damage that could result while any computer and or equipment
insured is working or at rest. The cover under this policy also extends to include loss or damage to external data
NEM Insurance Plc

media such as diskettes and tapes containing processed information while such are kept within the premises.
The increase in cost of working, as a result of damage to the main computer equipment, is also covered and
indemnity is provided for alternative means of carrying on operation. With payment of an additional premium,
this policy can be extended to cover the risk of theft.
Energy Risks
The policies on offer in this area have been specifically developed to take advantage of the insurance
opportunities created by the Nigerian Content Policy. The Nigerian content policy is aimed at utilizing Nigerian
human and material resources in creating values in the country through all contracts awarded in the Oil and
Gas industry and the Power sector of the economy. NEM Insurance Plc has carved a niche as the Leader in
provision of Oil & Gas and Energy Insurance in Nigeria.
•• Our focus is on the following areas:

•• Upstream Risks which includes Construction/Erection All Risks, Operators Extra Expense Insurance,
Property Insurance and General Third Party Liability Insurance.
•• Downstream Risks which include the downstream properties (Refineries and Petrochemical plants, Onshore
pipelines, Oil tank farm, Gas processing plants, Pumping and Metering stations, Gas turbines and Boilers,
Damage to Asset and other related downstream sector risks.
•• Power, Solid Mineral and Other special products.
The above products have been packaged for marketing to the public sector as well as various manufacturing,
industrial and commercial concerns. Financial institutions such as banks, mortgage and stock broking firms
are also being offered these products. Our Company is innovative in approach and we specialize in packaging
policies in line with the needs of the various segments of the economy. NEM Insurance Plc also provides
comprehensive risk management services. The Company carries out various risk surveys and make appropriate
recommendations towards risk improvement and minimization of loss impacts.
Approach to Management of Underwriting Risks

The Company’s underwriting risk shall be managed by adhering to policies, principles and guidelines spelt out
in the Annual Underwriting Plan.
Where the broker has inadequate knowledge of the trade of the client or the class of business and the client
not willing to disclose such information, the Company shall exercise caution in taking on such risks.
The Company shall exercise extreme prudence and caution when dealing with clients with financial difficulties
or poor payment records; and with transient clients who change insurers regularly; and The Company shall
ensure compliance with the National Insurance Commission’s guidelines on “Know Your Customer” (KYC)
requirement to get enough information about the transaction.
The Company carries out timely pre-loss inspection/survey exercise of risks, preferably before commencement
of cover but not later than 48 hours after commencement of risks.
We limit acceptance of risks to a more convenient value/share while spreading excess through co-insurance or
facultative basis. We ensure application/introduction/review of policy terms and conditions including clauses/
warranties that will deal with areas of concern which will at the end of the day make the risk worthy of being in
the Company’s portfolio.
NEM Insurance Plc

Risk Acceptance Rules

The Company shall follow the provisions (terms and conditions) of the reinsurance treaties that were arranged
for the classes of insurance that any risk offered for insurance falls under in deciding whether to accept the
risk or not. This shall be the case on all cases where the sum insured of the risk is more than the Company’s
retention as contained and evidenced by the treaty cover notes.
For any risk that Reinsurance Treaty could not be arranged for, acceptance of such risks shall be limited to any
limit set by the Company for such risks at the beginning of each year and shown in the underwriting plan.
Marine Insurance Risks

No Marine insurance risk (Hull or Cargo), Marine Cargo or any other special risks of different nature but relating
to Marine Insurance e.g. Marine Cargo Insurance export, shall be accepted without clarification from the Heads
of Technical, Energy and Branch Operations Departments. The Company shall not accept Marine Cargo
business in respect of fish head risks whether as import or export. Where it must be covered for any reason,
cover shall be limited to ICC “C” and on rate of premium of a minimum of 0.20%.
Aviation Risks
No Aviation risk, Marine Hull risk, Marine Cargo export and any other special risks of different nature shall be
accepted without clarification from the Heads of Technical, Energy and Branch Operations Departments.
49.4 Approaches to Risk Mitigation

Generally, we shall apply any of the following four (4) approaches to risk mitigations:
a) Risk Termination (Avoidance)

Under the risk termination approach, we will take measures to avoid risks that are outside our risk appetite,
not aligned to our strategy or offer rewards that are unattractive when compared to the risk undertaken.
Specifically, we will discontinue activities that generate these risks, such as divesting from certain geographical
markets, product lines or businesses. Generally, we will utilise this approach for high-risk events that remain
unacceptably high even after we have applied controls.
b) Risk Treatment (Reduction)

Under the risk treatment approach, we would accept the risks inherent in our transactions, but shall take
measures, through our system of internal controls, to reduce the likelihood and/or impact of these risks. Generally,
we would utilise this approach for risks that occur frequently and have low impact. Some of the measures we
shall take under this approach may include formulating or enhancing policies, defining boundaries and authority
limits, assigning accountabilities and measuring performance, improving processes, strengthening existing
controls or implementing new controls and continuing education and training.
c) Risk Transfer (Sharing)

Under the risk transfer approach, we would accept the risks inherent in our transactions, but shall take measures
to transfer whole or portions of the risk to an independent counterparty. Specifically, we shall transfer our risks
to an independent counterparty such as co-insurance and reinsurance companies by utilising contracts and
arrangements. We will retain accountability for the outsourced risk and that outsourcing does not eliminate
risk but only changes our risk profile. The relevant business units shall be responsible for identifying and
incorporating the risks arising from such risk transfer arrangements in their risk registers. The business units
shall also be responsible for managing the resultant risks and reviewing the risk transfer arrangement to ensure
that it is still capable of mitigating the initial risk.
NEM Insurance Plc

d) Risk Tolerance (Acceptance)

Under the risk tolerance approach, we would accept the risks inherent in our transactions and would not take
any action to change the likelihood and/or impact of the risks. We shall adopt this approach where the risk is
low and the cost of further managing the risk exceeds the potential benefit should the risk crystallize.
e) Reinsurance Treaty Cover

We have arranged very adequate reinsurance treaties to enable us accommodate risks with high necessary
support in the event of large claims. Our treaties are arranged by UAIB RE and placed with a consortium of
reputable reinsurance companies.
The types of re-insurance on NEM Treaty are:

1) Quota share
2) Surplus
3) Excess of loss
1. Quota share
This is the simplest type of Re-insurance whereby a Reinsurer agrees to reinsure a fixed proportion of every risk
accepted by the ceding Company, sharing proportionately in all losses and receiving in the same proportion of
all direct net premium, less the agreed reinsurance commission.
2. Surplus
Under this arrangement the ceding Company can retain a risk up to the level of its agreed Retention amount.
The proportion of the risk which is beyond the Retention amount is then ceded into the Surplus treaty and
reinsurer receives a proportionate share of the premium, less reinsurance commission.
3. Excess of Loss
This arrangement protects the ceding Company against a loss where the ceding Company’s claims liability
exceeds its retention.
Concentration of insurance risk

The Company monitors concentrations of insurance risk by product and sector. An analysis of concentrations
of insurance risk at 31 December 2023 and 2022 for premium received is set out below:
(a) By product
2023 2022
N’000 N’000
Motor business 20,117,645 10,215,056

Fire & Property 13,464,145 8,531,794
Marine & Aviation 4,738,962 3,463,667
General Accident 5,053,009 3,258,776
Energy business 15,054,932 4,765,273
Agriculture 62,913 152,756
Engineering 3,472,794 2,267,819
Bond 743,919 713,909
62,708,320 33,369,050
NEM Insurance Plc

(b) By sector
2023 2022
N’000 N’000
Energy 22,091,618 4,949,598

Financial Services 14,155,142 9,806,417
IT/Telecoms & Other Corp. 10,663,613 7,500,775
Manufacturing 11,453,511 8,056,388
Retail 4,344,436 3,055,872
62,708,320 33,369,050
50 Financial risk management

NEM Insurance Plc operates in a highly complex and competitive environment driven by the need to meet all
claim obligations, maximize returns to shareholders and comply with all statutory and regulatory requirements.
The Company is in the business of managing risks for public and private entities as well as individuals. In the
ordinary course of its business activities, the Company is exposed to a variety of financial risks, including
currency risk, liquidity risk, credit risk, country risk and market risk as well as operational and compliance risks.
Risk is the level of exposure to opportunity, threat and uncertainty – that should be identified, understood,
measured and effectively managed, in the course of executing the Company’s business strategies. In terms
of opportunity, we see risk in relation to returns in that the greater the risk, the greater the potential return. We
therefore manage risk by using several methods to maximize the positive aspects within the constraints of our
risk appetite and business environment.
In terms of threat, we see risk as the potential for the occurrence of negative events such as financial loss,
fraud, damage to reputation or public image and loss of competitive advantage. We therefore manage risk in
this context by introducing risk management techniques to reduce the probability of these negative events
occurring without incurring excessive costs or stifling the initiative, innovation, and entrepreneurial flair of our
staff.
In terms of uncertainty, we see risk as the distribution of all possible outcomes both positive and negative. In
this context, we manage uncertainty by seeking to reduce the variance between anticipated outcomes and
actual results.
Our risk management philosophy and culture consist of our shared beliefs, values, attitudes and practices with
respect to how we consider risk in everything we do, from strategy development and implementation to every
aspect of our day-to-day activities.
We shall underwrite all profitable transactions that we consider prudent and meets our risk appetite and profile.
We shall take calculated and informed risk while seeking to maximize returns and shareholders’ value. We shall
continuously evaluate the risk and rewards inherent in our business transactions, from strategy development
and implementation to our day-to-day activities. We believe that to achieve this objective would require a good
understanding of the risks we are taking and the effective management of these risks both at the individual and
enterprise levels.
NEM Insurance Plc

We therefore manage and control risk by introducing new risk management techniques, enhancing existing risk
management practices and placing a greater emphasis on cooperation among departments to comprehensively
manage the Company’s full range of risks as a whole. The Company proactively formulates strategies and plans
that enable the identification and management of events/factors/occurrences that impact our ability to attain
our business and strategic objectives.
(a) Risk Management Strategy

The Company adopts the following strategy for managing risks:
i. Establish a clearly defined risk management process for identifying, measuring, controlling, monitoring and
reporting risks.
ii. Entrench and incorporate risk management principles in all functions across the Company.
iii. Comprehensive implementation and maintenance of our risk management framework.
iv. Ensure good corporate governance practices.
v. Board and senior management support to promote sound risk management.
vi. Zero tolerance for non-compliance with risk and control procedures.
vii. Avoid concentration of risk to any industry, market, sector or individual entity.
viii. Deploy a risk management systems to facilitate the effective management of risks.
(b) Market risk

The Group undertakes activities which give rise to a considerable level of market risks exposures (i.e. the risk
that the fair value of future cash flows of our trading and investment positions or other financial instrument, will
fluctuate because of changes in market prices). Market risks can arise from adverse changes in interest rates,
foreign exchange rates, equity prices, commodity prices and other relevant factors such as market volatilities.
The objective of market risk management activities is to continually manage and control market risk exposure
within acceptable parameters, while optimizing the return on risks taken.
Management of market risk

The Group has an independent Risk Management unit which assesses, monitors, manages and reports on
market risk taking activities across the group. We have continued to enhance our Risk Management Framework.
The Group’s market risk objectives, policies and processes are aimed at instituting a model that objectively
identifies, measures and manages market risks in the Group and ensure that:
1. The individuals who take or manage risk clearly understand it.

2. The Group’s risk exposure is within established limits.
3. Risk taking decisions are in line with business strategy and objectives set by the Board of Directors.
4. The expected payoffs compensate for the risks taken.
5. Sufficient capital, as a buffer, is available to take risk.
(i) Interest Rate Risk

The Group is exposed to a considerable level of interest rate risk-especially on the Investment contracts (
i.e. the risk that the future cash flows of a financial instrument will fluctuate because of changes in market
interest rates). Similar to the last financial year, interest rate was fairly volatile. These changes could have a
negative impact on the Net Interest Income, if not properly managed. The Group however, has all of its finacial
instruments in non-rate sensitive assets and liabilities. This greatly assists it in managing its exposure to interest
rate risks.
NEM Insurance Plc

Exposure to fixed and variable interest rate risk

Group Non-interest
Fixed Floating bearing Total
December 31 2023 N’000 N’000 N’000 N’000
Cash and cash equivalents 3,742,338 - 4,280,742 8,023,080

Financial assets
- At fair value through profit or loss - - 10,463,494 10,463,494
- - 75,219 75,219
Loans and other receivables 108,114 - - 108,114
Total 40,465,087 - 14,819,456 55,284,542
Group Non-interest
December 31 2022 (restated) N’000 N’000 N’000 N’000

Financial assets -
- - 53,731 53,731
Total 18,717,921 - 8,465,712 27,183,633
Parent Non-interest
December 31 2023 N’000 N’000 N’000 N’000

Financial assets
- - 75,219 75,219
- At amortised cost 36,614,636 36,614,636
Total 40,444,081 - 14,750,650 55,194,731
Parent Non-interest
December 31 2022 (restated) N’000 N’000 N’000 N’000

Financial assets
- - 53,731 53,731
Total 18,717,921 - 8,429,883 27,147,804
NEM Insurance Plc

Sensitivity analysis - interest-rate risk

The sensitivity analysis below is based on a change in one assumption while holding all other assumptions
constant. In practice this is unlikely to occur, and changes in some of the assumptions may be correlated - for
example, change in interest rate and change in market values.
Group Impact 100 Impact 100

basis point basis point
Carrying Floating increase in decrease in
amount Fixed rate rate interest rate interest rate
December 31 2023 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 3,742,338 3,742,338 - (3,742) 3,742
Amortized Cost Assets 36,614,636 36,614,636 - (36,615) 36,615
Loans and other receivables 108,114 108,114 - (108) 108
40,356,973 40,356,973 - (40,357) 40,357
Liabilities
Borrowings 1,557,737 1,557,737 - 1,558 (1,558)
1,557,737 1,557,737 - 1,558 (1,558)
Net increase/(Decrease) (38,799) 38,799
Group Impact 100 Impact 100

31 December 2022 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 6,273,297 6,273,297 - 6,273 (6,273)
Amortized Cost Assets 12,224,178 12,224,178 - 12,224 (12,224)
Loans and other receivables 220,446 220,446 - 220 (220)
18,717,921 18,717,921 - 18,718 (18,718)
Liabilities
Borrowings - - - - -
- - - - -
Net increase/(Decrease) 18,718 (18,718)
NEM Insurance Plc

Parent Impact 100 Impact 100

December 31 2023 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 3,721,332 3,721,332 - (3,721) 3,721
Amortized Cost Assets 36,614,636 36,614,636 - (36,615) 36,615
Loans and other receivables 108,114 108,114 - (108) 108
40,444,081 40,444,081 - (40,444) 40,444
Liabilities
Borrowings 1,557,737 1,557,737 - 1,558 (1,558)
1,557,737 1,557,737 - 1,558 (1,558)
Net increase/(Decrease) (38,886) 38,886
Parent Impact 100 Impact 100

31 December 2022 N’000 N’000 N’000 N’000 N’000
Assets
Cash and cash equivalents 5,004,299 5,004,299 - 5,004 (5,004)
Amortized Cost Assets 12,224,178 12,224,178 - 12,224 (12,224)
Loans and other receivables 220,446 220,446 - 220 (220)
17,448,923 17,448,923 - 17,449 (17,449)
Liabilities
Borrowings - -
- - - - -
Net increase/(Decrease) 17,449 (17,449)
The impact on the Company’s profit before tax if interest rates on financial instruments held at amortized cost or
at fair value had increased or decreased by 100 basis points, with all other variables held constant are considered
insignificant. This is due to the short term and fixed interest nature of the majority of the financial assets measured
at amortized cost.
(ii) Foreign exchange risk

Foreign exchange risk is the exposure of the Group’s financial condition to the changes in foreign exchange
rates. The Company is exposed to exchange rate risk as a result of cash balances denominated in currencies
other than Naira.
NEM Insurance Plc

The table below summaries the Group’s financial instruments at carrying amount, categorised by currency:
December 31 2023 Total Naira US Dollar Euro Pounds
Assets
Cash and cash equivalents 8,028,711 5,528,487 2,029,495 437,803 32,926
Financial assets
- At fair value through profit or loss 10,463,494 10,463,494 - - -
75,219 75,219 - - -
- At amortised cost 36,614,636 17,051,116 19,303,875 259,644 -
Loans and other receivables 108,114 108,114
Reinsurance contract assets 9,433,042 9,433,042 - - -
Statutory deposit 320,000 320,000 - - -
Total financial assets 65,043,215 42,979,471 21,333,370 697,447 32,926
Liabilities
Other payables (excluding non-
4,981,828 4,981,828 - - -
financial liabilities)
Total financial liabilities 4,981,828 4,981,828 - - -
Net financial assets/liabilities 60,061,387 37,997,643 21,333,370 697,447 32,926
Insurance contract liabilities 25,285,724 25,285,724 - - -

Net policyholders' assets 34,775,662 12,711,919 21,333,370 697,447 32,926
December 31, 2022 (Restated) Total Naira US Dollar Euro Pounds

Assets
Financial assets
75,219 75,219 - - -
- At amortised cost
7,413,928 4,810,250 - -
12,224,178
Loans and other receivables 220,446 220,446
Reinsurance contract assets 9,472,703 9,472,703 - - -
Liabilities
2,099,247 2,099,247 - - -
Insurance contract liabilities 14,674,166 14,674,166 - - -

NEM Insurance Plc

The table below summaries the Parent’s financial instruments at carrying amount, categorised by currency:
December 31 2023 Total Naira US Dollar Euro Pounds
Assets
Financial assets
75,219 75,219 - - -
- At amortised cost 36,614,636 17,051,116 19,303,875 259,644 -
Loans and other receivables 108,114 108,114 - - -
Reinsurance assets 9,433,042 9,433,042 - - -
Liabilities
4,830,401 4,830,401 - - -
Insurance contract liabilities 25,097,847 25,097,847 - -

December 31, 2022 (Restated) Total Naira US Dollar Euro Pounds

Assets
Financial assets
75,219 75,219 - - -
- At amortised cost 12,224,178 7,413,928 4,810,250 - -
Loans and other receivables 220,446 220,446 - - -
Reinsurance assets 9,472,703 9,472,703 - - -
Liabilities
2,094,086 2,094,086 - - -
Insurance contract liabilities 14,674,166 14,674,166 - - 187,877

Net policyholders' assets 20,193,743 12,255,716 7,806,994 25,466 (82,311)
NEM Insurance Plc

(iii) Equity risk

The Group is exposed to equity price risk by holding investments quoted on the Stock Exchange. Equity
securities quoted on the Stock Exchange is exposed to movement based on the general movement of the all
share index and movement in prices of specific securities held by the Group.
Sensitivity analysis - equity risk

The sensitivity analysis for equity price risk illustrates how changes in the fair value of equity securities will
fluctuate because of changes in market prices, whether those changes are caused by factors specific to the
individual equity issuer, or factors affecting all similar equity securities traded in the market.
Management monitors movements of financial assets and equity price risk movements by assessing the
expected changes in the different portfolios due to parallel movements of a 10% increase or decrease in the
Nigeria All share index with all other variables held constant and all the Company’s equity instruments in that
particular index moving proportionally.
As at 31 December 2023, the market value of quoted securities held by the Group is N10.5 billion (2022: N5.8
billion). If the all share index of the NGX moves by 100 basis points at 31 December 2023, the effect on profit
or loss would have been N247 million ( 2022: N 54 million).
(c) Credit Risk

The Company’s assets are exposed to credit risk, which is the risk that a counterparty will be unable to pay
amounts in full when due. The Company’s maximum exposure to credit risk is reflected in the carrying amounts
of financial assets on the statement of financial position. The main sources of the Company’s incoming cash
flows are the amounts of receivables from brokers and reinsurers. The Company manages the credit risk arising
from such sources by aging and monitoring the receivables. The Company conducts the review of current
and non-current receivables on a monthly basis and monitors the progress in the process of collection of the
premiums in accordance with the procedure stated in the Company’s internal control policy. The non-current
receivables are checked and assessed for impairment.
The overdue premiums are considered by the Company on case by case basis. If an overdue premium is
recognized by the Company as uncollectible, a notification is sent to the broker and the insurance agreement
is cancelled from the date of notification. The premium related to the period from the beginning of insurance
cover until the date of cancellation of the insurance agreement is considered a bad debt, and further steps right
up to legal actions are planned with regard to that bad debt.
Other areas where the Company is exposed to credit risk are:

•• amounts due from reinsurers for the insurance risks ceded;
•• amounts due from insurance intermediaries.
•• amounts of deposits held in banks and correspondent accounts
NEM is exposed to the following categories of credit risk;

Direct Default Risk - risk that NEM will not receive the cash flows or assets to which it is entitled because
brokers, clients and other debtors which NEM has a bilateral contract default on their obligations.
Concentration Risk – is the exposure to losses due to excessive concentration of business activities to individual
counterparties, groups of individual counterparties or related entities, counterparties in specific geographical
locations, industry sectors, specific products, etc.
Counterparty Risk - the risk that a counterparty is not able or willing to meet its financial obligations to the
Company as they fall due.
NEM Insurance Plc

(i)
Credit Risk Principles
The following principles underpin the Company’s credit risk management policies:
•• Individuals who create the credit risk and those who manage the risk clearly understand the nature of the
risk;
•• The Company’s credit risk exposure is within the limits as approved by the Board;
•• Credit decisions are clear and explicit and in line with the business strategy and objectives as approved by
the Board;
•• Credit risk exposures shall be within the defined limits to ensure there is no excessive concentration and
that credit control procedures for managing large exposures and related counterparties are adhered to;
•• Appropriate classification of credit risk through periodic evaluation of the collectability of risk assets; and
•• Adequate loan loss provisioning to ensure that provisions or allowances are made to absorb anticipated
losses.
•• The expected payoffs more than compensate for the credit risks taken by the Company;
•• Credit risk taking decisions are explicit and clear;
•• There shall be clear delegated authorization limits for transactions;
•• Sufficient capital as a buffer is available to take credit risk;

The Company’s credit risk appetite shall be in line with its strategic objectives, available resources and the
provisions of NAICOM Operational Guidelines. In setting this appetite/tolerance limits, NEM takes into
consideration its corporate solvency level, risk capital and liquidity level , credit ratings, level of investments,
reinsurance and coinsurance arrangements, and nature and categories of its clients. The company’s credit risk
is subsequently analysed as follows.
Credit risk by class

Group
December 31 2023 December 31 2022(restated)
Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total

Financial assets Gross Gross Gross Gross Gross Gross
- at amortised cost amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
External rating Grade

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 1,414,513 - - 1,414,513 1,242,644 - - 1,242,644
B- 35,070,471 - 129,652 35,200,122 10,981,534 - - 10,981,534
Internal rating Grade

Grade 1 25,727,230 - 30,963 25,758,193 9,377,571 - - 9,377,571
Grade 2 10,757,754 - 98,689 10,856,443 2,846,607 - - 2,846,607
NEM Insurance Plc


Gross Gross Gross Gross Gross Gross
Financial assets at FVOCI amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ 47,219 - - 47,219 30,148 - - 30,148
B - - - - - - - -
B- 28,000 - - 28,000 23,583 - - 23,583

Grade 1 75,219 - - 75,219 53,731 - - 53,731
Grade 2 - - - - - - - -

Cash and cash Gross Gross Gross Gross Gross Gross
equivalents amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 8,007,445 - 21,266 8,028,711 8,884,655 - - 8,884,655

Grade 1 8,007,445 - 21,266 8,028,711 8,884,655 - - 8,884,655
Grade 2 - - - - - - - -

Reinsurance assets amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B to B- 9,433,042 - - 9,433,042 9,472,703 - - 9,472,703

Grade 1 9,433,042 - - 9,433,042 9,472,703 - - 9,472,703
Grade 2 - - - - - - - -
NEM Insurance Plc


Statutory deposit amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 320,000 - - 320,000 320,000 - - 320,000
B- - - - - - - - -

Grade 1 320,000 - - 320,000 320,000 - - 320,000
Grade 2 - - - - - - - -

Loans and receivables amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -

Grade 1 108,114 - - 108,114 220,446 - - 220,446
Grade 2 - - - - - - - -

Other receivables (ex-
cluding non-financial Gross Gross Gross Gross Gross Gross
assets) amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -

Grade 1 1,500,000 - - 1,500,000 122,496 - - 122,496
Grade 2 - - - - - - - -
NEM Insurance Plc

Credit risk by class

Parent

Financial assets - at Gross Gross Gross Gross Gross Gross
amortised cost amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 1,414,513 - - 1,414,513 1,242,644 - - 1,242,644
B- 35,070,471 - 129,652 35,200,122 10,981,534 - - 10,981,534

Grade 1 25,727,230 - 30,963 25,758,193 9,377,571 - - 9,377,571
Grade 2 10,757,754 - 98,689 10,856,443 2,846,607 - - 2,846,607

Financial assets at FVOCI amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ 47,219 - - 47,219 30,148 - - 30,148
B - - - - - - - -
B- 28,000 - - 28,000 23,583 - - 23,583

Grade 1 75,219 - - 75,219 53,731 - - 53,731
Grade 2 - - - - - - - -
NEM Insurance Plc


Cash and cash Gross Gross Gross Gross Gross Gross
equivalents amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 7,912,003 - 21,266 7,933,269 8,848,826 - - 8,848,826

Grade 1 7,912,003 - 21,266 7,933,269 8,848,826 - - 8,848,826
Grade 2 - - - - - - - -

Reinsurance assets amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B - - - - - - - -
B- 9,433,042 - - 9,433,042 9,472,703 - - 9,472,703

Grade 1 9,433,042 - - 9,433,042 9,472,703 - - 9,472,703
Grade 2 - - - - - - - -

Statutory deposit amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B 320,000 - - 320,000 320,000 - - 320,000
B- - - - - - - - -

Grade 1 320,000 - - 320,000 320,000 - - 320,000
Grade 2 - - - - - - - -
NEM Insurance Plc


Loans and receivables amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -

Grade 1 128,114 - - 128,114 220,446 - - 220,446
Grade 2 - - - - - - - -

Other receivables (ex-
cluding non-financial Gross Gross Gross Gross Gross Gross
assets) amount amount amount amount amount amount
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000

AAA - - - - - - - -
AA- AA+ - - - - - - - -
A- to A+ - - - - - - - -
B - - - - - - - -
B- - - - - - - - -

Grade 1 1,500,000 - - 1,500,000 122,496 - - 122,496
Grade 2 - - - - - - - -
NEM Insurance Plc

Amounts arising from ECL on financial assets

Group
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash 4,452 - 21,266 25,718 6,644 - - 6,644

equivalents
Financial assets -
- At fair value through
other comprehensive - - - - - - - -
income
- At amortised cost 129,750 - 129,652 259,402 65,158 - - 65,158
Reinsurance contract
- - - - - - - -
assets
Statutory deposit - - - - - - - -
Loans and receivables - - - - - - - -
Other receivables
(excluding non-financial - - - - - - - -
assets)
134,202 - 150,917 285,119 71,802 - - 71,802
Parent
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash 4,452 - 21,266 25,718 6,644 - - 6,644

equivalents
Financial assets
- At fair value through
other comprehensive - - - - - - - -
income
- At amortised cost 129,750 - 129,652 259,402 65,158 - - 65,158
Reinsurance contract
- - - - - - - -
assets
Statutory deposit - - - - - - - -
Loans and receivables - - - - - - - -
Other receivables
(excluding non-financial - - - - - - - -
assets)
134,202 - 150,917 285,119 71,802 - - 71,802
NEM Insurance Plc

Concentration of credit risk

This is the exposure to losses due to excessive concentration of business activities to individual counterparties,
groups of individual counterparties or related entities, counterparties in specific geographical locations, industry
sectors, specific products, etc.
An analysis of the carrying amounts of financial invetsments is shown below;
By sector
Group
December 31, 2023 Corporate Commercial Bank Retail Government Others Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 803,493 - 7,225,218 - - - 8,028,711

Financial assets -
- At fair value through profit
4,275,739 - 6,187,755 - - - 10,463,494
or loss
28,000 - - - 47,219 - 75,219
- At amortised cost 26,033,090 - 7,405,696 - 3,175,850 - 36,614,636
Loan and other receivables 1,500,000 - - - - 648,365 2,148,365
32,640,322 - 20,818,669 - 3,223,069 648,365 57,330,425
December 31, 2022 (restated) Corporate Commercial Bank Retail Government Others Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 1,268,998 - 7,615,657 - - - 8,884,655

Financial assets
3,280,707 - 2,519,916 - - - 5,800,623
or loss
23,583 - - - 30,148 - 53,731
Loan and other receivables - - - - - 723,429 723,429
10,190,523 - 15,139,872 - 1,632,792 723,429 27,686,616
Parent
December 31, 2023 Corporate Commercial Bank Retail Government Others Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 803,493 - 7,129,776 - - - 7,933,269

Financial assets
4,275,739 - 6,187,755 - - -
or loss 10,463,494
28,000 - - - 47,219 - 75,219
Loan and other receivables 1,500,000 - - - - 375,423 1,875,423
32,640,322 - 20,723,226 - 3,223,069 375,423 56,962,040
NEM Insurance Plc

December 31, 2022 (restated) Corporate Commercial Bank Retail Government Others Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 1,268,998 7,579,828 8,848,826

Financial assets
3,280,707 - 2,519,916 - - - 5,800,623
or loss
23,583 - - - 30,148 - 53,731
Loan and other receivables - - - - - 581,362 581,362
10,190,523 - 15,104,043 - 1,632,792 581,362 27,508,720
By Geography
Group
December 31, 2023 Nigeria Rest of Africa Europe Others Total

N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 8,007,445 - 21,266 - 8,028,711

Financial assets
- At fair value through profit or loss 10,463,494 - - - 10,463,494
75,219 - - - 75,219
- At amortised cost 25,758,193 98,689 10,757,754 - 36,614,636
44,304,351 98,689 10,779,020 - 55,182,060
December 31, 2022 (restated) Nigeria Rest of Africa Europe Others Total
N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 8,884,655 - - - 8,884,655

Financial assets
- At fair value through other com-
53,731 - - - 53,731
prehensive income
- At amortised cost 9,377,571 - 2,846,607 - 12,224,178
24,116,580 - 2,846,607 - 26,963,187
NEM Insurance Plc

By Geography
Parent
December 31, 2023 Nigeria Rest of Africa Europe Others Total

N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 7,912,003 - 21,266 - 7,933,269

Financial assets
75,219 - - - 75,219
- At amortised cost 25,758,193 98,689 10,757,754 - 36,614,636
44,208,909 98,689 10,779,020 - 55,086,617
December 31, 2022 (restated) Nigeria Rest of Africa Europe Others Total
N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents 8,848,826 - - - 8,848,826

Financial assets
53,731 - - - 53,731
prehensive income
- At amortised cost 9,377,571 - 2,846,607 - 12,224,178
24,080,751 - 2,846,607 - 26,927,358
Business Risk Management qualitatively as part of the annual risk & control self-
Business risk is managed by Management Underwriting assessment. The Group’s risk functions analyses the
& Investment Committee through consistent monitoring overall risk profile and regularly informs management
of product lines’ profitability, stakeholder engagement about the current profile and potential exposures
to ensure positive outcomes from external factors to the risk. Risk functions’ presentation of potential
beyond the Group’s control and prompt response to reputational risk guides management decisions in
changes in the external environment. executing business operations and strategies.
Reputational Risk Management The Group has laid great emphasis on effective
management of its exposure to credit risk especially
NEM Insurance Plc norms and values set a tone for premium related debts. The Group defines credit risk as
acceptable behaviors required for all staff members, the risk of counterparty’s failure to meet its contractual
and provide structure and guidance for non-quantifiable obligations. Credit risk arises from insurance cover
decision making, thereby assisting in the management granted to parties with payment instruments or
of the group’s reputation. payments plan issued by stating or implying the terms
of contractual agreement. Credit risk exposure to
The Group identifies, assesses and manages direct business is low as the Group requires debtors to
reputational risks predominately within its business provide payment plans before inception of insurance
processes. Management of reputational risks is based policies. The Group’s exposure to credit risk arising
on the Group’s risk governance framework. In addition, from brokerage business is relatively moderate and the
Company-wide risks are identified and assessed
NEM Insurance Plc

risk is managed by the Group’s internal rating model for grading in order to categorize risk exposures
brokers. Our credit risk internal rating model is guided according to the degree of financial loss and the
by several weighted parameters which determine level of priority expected from management.
the categorization of brokers the Group transacts
businesses with. d) Assessment of credit risk. All firsthand assessment
and review of credit exposures in excess of credit
The Group credit risk originates from reinsurance limits, prior to granting insurance cover are subject
recoverable transactions, retail clients, corporate to review process and approval given during
clients, brokers and agents. management meeting.
Management of credit risk due to outstanding e)

Continuous reviewing of compliance and
premium processes in order to maintain credit risk exposure
within acceptable parameters.
Credit Rating In measuring credit risk, the Group considers three
We constantly review brokers’ contribution to ensure models:
that adequate attention is paid to high premium
contributing brokers while others are explored for a) The Probability of Default(PD), the likelihood that
possible potentials. the insured will fail to make full and timely payment
of financial obligations
Receivables are reviewed and categorized into grade
A, B, C and D on the basis of: b) The Exposure at Default (EAD) is derived from
a) Previous year contribution the Group’s expected value of debt at the time of
b) Payment mode default
c) Outstanding as at December of the previous year c) The Loss Given Default (LGD) which states the
d) Future prospect amount of the loss if there is a default, expressed
e) Recommendation as a percentage of the (EAD).
The Group credit risk is constantly reviewed and Impairment Model

approved during the weekly Management Operations
Premium debtors, which technically falls under
meeting. The monthly Group management meeting is
receivables is recognized at a fair value and
responsible for the assessment and continual review
subsequently measured at amortized cost, less
of the Group premium debt and direct appropriate
provision for impaired receivables. Under IFRS, an
actions in respect of delinquent ones. It also ensured
asset is impaired if the carrying amount is greater than
that adequate provisions are taken in line with the
the recoverable amount. The Group adopts simplified
regulatory guidelines. Other credit risk management
provisional matrix for calculating expected losses on
includes:
premium receivables as a practical expedient in line
with IFRS 9. The provision matrix is based on the
a) Formulating credit policies with strategic business
Group’s historical default rates over the expected life
units, underwriters, brokers covering, brokers
of the trade receivables which is adjusted for forward-
grading, reporting, assessment, legal procedures
looking estimates.
and compliance with regulatory and statutory
bodies.
Credit quality
b) Identification of credit risk drivers within the Group The Group loan and receivables have no collateral
in order to coordinate and monitor the probability as security and other credit enhancements, thus the
of default that could have an unfortunate impact. Group has no loan or receivables that are past due but
not impaired. Insurance receivables are to be settled
c) Developing and monitoring credit limits. The Group on demand and the carrying amount is not significantly
is responsible for setting credit limits through different from the fair value.
NEM Insurance Plc

The Group further manages its exposure to credit measures of actual risks in the business and support
risk through deduction of transactions at source and functions, such as error rates and control breaks.
investment in blue-chip companies quoted on Stock Summary indicators, related escalation criteria,
Exchange. The exposure to credit risk associated with explanations of any excesses, and identified trends are
other receivables is low. all important aspects that are tracked. Many indicators
are specific to each business unit or process, but
Operational Risk Management some may be common and reported in a consolidated
A summary of the analytical tools that the Group fashion. Threshold is set by management for each key
employed in operational risk management are risk indicators and escalation of indicators above such
discussed below: levels triggers a mitigation response.
Loss events report: The ERM team developed a

Issue tracking report/action plan report:
database for loss event collation named Loss Event
Issues can surface from the internal self-assessment Register. This register allows staff to report actual and
process, an audit, or regulators requirements. A key near-miss (an unplanned event that did not result in
result of the self-assessment process is an action plan injury, illness, or damage – but had the potential to do
with assigned responsibilities. This report contains a so) loss events. Summary statistics from the loss event
reap of major issues, the status of the action plan, and database are used to show trends of total losses and
an aging of overdue tasks. mean average loss, with analysis by type of loss and
business line.
Risk control and self-assessment (RCSA): The business
areas perform self-assessments semi- annually and Business continuity plan: A critical tool in managing our
results are aggregated to provide a qualitative and operational risk is the Business Continuity Plan (BCP)
quantitative profile of risk across the organization and that documents the procedures to be executed by
related action items. Severity of the risks identified relevant teams in the event of a disaster.
is compared with previous RCSA risk severity and a
trend is ascertained. The register summarizes findings Liquidity Risk Management
into list of risks facing the institution. These summary
results are accompanied by descriptions of the Liquidity risk is the risk that cash may not be available
significant gaps and trends, suggested mitigants, and to pay obligations when due at a reasonable cost.
process owners and timeline for each risk. The Group mitigates this risk by monitoring cash
activities and expected outflows. The Group’s current
The profile of risks across the organization is an integral liabilities arise as claims are made and clients request
input for the Group’s internal audit whilst preparing for termination of their investment-linked products.
audit plans. Areas with high-risk exposures are The Group has no material commitments for capital
thoroughly audited and performance of recommended expenditures and there is no need for such expenditures
controls tested by the Group’s internal control function in the normal course of business. Claims payments
to ascertain that risks are properly managed. are funded by current operating cash flows including
investment income. The Group has no tolerance for
Risk Maps: Risk maps typically are graphs on which liquidity risk and is committed to meeting all liabilities
impact of each risk is plotted against probability of as they fall due.
occurrence. Risk maps are designed either to show
inherent or residual risk categories by line of business. Expected Credit Loss Impairment Model for finan-
Risks in the upper right are very severe and need to cial assets
be monitored closely to reduce the Group’s exposure. The Group’s allowance for credit losses calculations
High-frequency/low-severity risks create the basis are outputs of models with a number of underlying
for expected losses and are often subject to detailed assumptions regarding the choice of variable inputs
analysis focused on reducing the level of losses. and their interdependencies. The expected credit
loss impairment model reflects the present value of all
Key risk indicators dashboard: These are numerous cash shortfalls related to default events either over the
NEM Insurance Plc

following twelve months or over the expected life of a Measurement of Expected credit losses
financial instrument depending on credit deterioration The probability of default (PD), exposure at default
from inception. The allowance for credit losses reflects (EAD), and loss given default (LGD) inputs used to
an unbiased, probability-weighted outcome which estimate expected credit losses are modelled based
considers multiple scenarios based on reasonable and on macroeconomic variables that are most closely
supportable forecasts. related with credit losses in the relevant portfolio.
The Group adopts a three-stage approach for The Group employs the usage of international rating
impairment assessment based on changes in credit agencies PD factors which was modified by factors
quality since initial recognition. specific to the Nigerian Economy such as inflation rate,
unemployment rate, GDP and so on.
•• tage 1 – Where there has not been a significant
S
increase in credit risk (SICR) since initial recogni- Using the probabilities of default (PD) as provided by
tion of a financial instrument, an amount equal to Standard & Poor’s, our model employs Nigeria-centric
12 months expected credit loss is recorded. The forward-looking macro-economic factors which
expected credit loss is computed using a proba- have been determined to be statistically significant,
bility of default occurring over the next 12 months. to adjust the PDs. Country-specific factors are also
For those instruments with a remaining maturity of applied to the LGD factors which originate from
less than 12 months, a probability of default cor- Basel recommendations and are thereby adjusted
responding to remaining term to maturity is used. to our specific circumstances. Base, optimistic and
pessimistic scenarios are employed and projected
•• tage 2 – When a financial instrument experi-
S cash flows are discounted to present value at using
ences a SICR subsequent to origination but is the effective rates of interest. The resulting ECL
not considered to be in default, it is included in computations are therefore appropriately probability-
Stage 2. This requires the computation of expect- weighted and consider relevant forward-looking
ed credit loss based on the probability of default information as well as the time value of money.
over the remaining estimated life of the financial
Details of these statistical parameters/inputs are as
instrument.
follows:
•• PD – The probability of default is an estimate of
•• tage 3 – Financial instruments that are consid-
S
the likelihood of default over a given time horizon.
ered to be in default are included in this stage.
A default may only happen at a certain time over
Similar to Stage 2, the allowance for credit losses
the remaining estimated life, if the facility has not
captures the lifetime expected credit losses.
been previously derecognized and is still in the
The guiding principle for ECL model is to reflect the portfolio.
general pattern of deterioration or improvement in
the credit quality of financial instruments since initial 1. 1
2-month PDs – This is the estimated probability of
recognition. The ECL allowance is based on credit default occurring within the next 12 months (or over)
losses expected to arise over the life of the asset (life the remaining life of the financial instrument if that
time expected credit loss), unless there has been no is less than 12 months). This is used to calculate
significant increase in credit risk since origination. 12-month ECLs.
Examples of financial assets with low credit risk (no
significant increase in credit risk) include: Risk free 2. Lifetime PDs – This is the estimated probability
and gilt edged debt investment securities that are of default occurring over the remaining life of the
determined to have low credit risk at the reporting financial instrument. This is used to calculate
date; and Other financial instruments (other than lease lifetime ECLs for ‘stage 2’ and ‘stage 3’ exposures.
receivables) on which credit risk has not increased PDs are limited to the maximum period of exposure
significantly since their initial recognition. required by IFRS 9.
NEM Insurance Plc

•• AD – The exposure at default is an estimate of

E Multiple forward-looking scenarios
the exposure at a future default date, taking into The Group determines allowance for credit losses
account expected changes in the exposure after using probability-weighted forward looking scenarios.
the reporting date, including repayments of prin-
cipal and interest, whether scheduled by contract The Group considers both internal and external
or otherwise, expected drawdowns on committed sources of information in order to achieve an unbiased
facilities, and accrued interest from missed pay- measure of the scenarios used. The Group prepares
ments. the scenarios using forecasts generated by credible
sources such as Business Monitor International (BMI),
•• GD – The loss given default is an estimate of the
L International Monetary Fund (IMF), Nigeria Bureau of
loss arising in the case where a default occurs Statistics (NBS), World Bank, Central Bank of Nigeria
at a given time. Basically, It is based on the dif- (CBN), Financial Markets Dealers Quotation (FMDQ)
ference between the contractual cash flows due and Trading Economics.
and those that the lender would expect to receive,
including from the realization of any collateral. It The Group estimates three scenarios for each risk
is usually expressed as a percentage of the EAD. parameter (LGD, EAD, CCF and PD) – Normal,
However, the Group make use of the combination Upturn and Downturn, which in turn are used in the
of the following in establishing its LGD: estimation of the multiple scenario ECLs. The normal
case represents the most likely outcome and is aligned
1) Fixed LGD ratios prescribed by the Bank for with information used by the Group for other purposes
International Settlements (BIS) under the foundation such as strategic planning and budgeting. The
approach other scenarios represent more optimistic and more
pessimistic outcomes. The Group has identified and
2) Recovery rates on insolvencies in Nigeria as documented key drivers of credit risk and credit losses
published by the World bank for each portfolio of financial instruments and, using an
analysis of historical data, has estimated relationships
between macro-economic variables, credit risk and
Forward-looking information
credit losses.
The measurement of expected credit losses for each
stage and the assessment of significant increases in Assessment of significant increase in credit risk
credit risk considers information about past events
(SICR)
and current conditions as well as reasonable and
supportable forecasts of future events and economic At each reporting date, the Group assesses whether
conditions. The estimation and application of forward- there has been a significant increase in credit risk for
looking information requires significant judgement. exposures since initial recognition by comparing the
risk of default occurring over the remaining expected
Macroeconomic factors life from the reporting date and the date of initial
recognition. The assessment considers specific
The Group relies on a broad range of forward looking quantitative and qualitative information about the issuer
information as economic inputs, such as: GDP growth, without consideration of collateral, and the impact of
unemployment rates, central bank base rates, crude forward-looking macroeconomic factors. The common
oil prices, inflation rates and foreign exchange rates. assessments for SICR on retail and non-retail portfolios
The inputs and models used for calculating expected include macroeconomic outlook, management
credit losses may not always capture all characteristics judgement, and delinquency and monitoring. Forward
of the market at the date of the financial statements. looking macroeconomic factors are a key component
To reflect this, qualitative adjustments or overlays may of the macroeconomic outlook. The importance and
be made as temporary adjustments using expert credit relevance of each specific macroeconomic factor
judgement. depend on the type of product, characteristics of
the financial instruments and the issuer and the
geographical region.
NEM Insurance Plc

The Group adopts a multi factor approach in assessing credit risk has not increased significantly since
changes in credit risk. This approach considers: initial recognition.
Quantitative (primary), Qualitative (secondary) and Definition of Default and Credit Impaired Fi-
Back stop indicators which are critical in allocating nancial Assets
financial assets into stages.
At each reporting date, the Group assesses
whether financial assets carried at amortized cost
i Quantitative elements
and debt financial assets carried at FVOCI are
The quantitative element is the primary indicator
credit-impaired. A financial asset is ‘credit impaired’
of significant increases in credit risk, with the
when one or more events that have a detrimental
qualitative element playing a secondary role. The
impact on the estimated future cashflows of the
quantitative element is calculated based on the
financial asset have occurred.
change in lifetime PDs by comparing:
Evidence that a financial asset is credit-impaired
•• the remaining lifetime PD as at the reporting
includes the following observable data:
date; with
(i) Significant financial difficulty of the borrower or
•• the remaining lifetime PD for this point in issuer;
time that was estimated based on facts and (ii) A breach of contract such as a default or past
circumstances at the time of initial recognition due event;
of the exposure (adjusted where relevant for (iii) It is becoming probable that the issuer will enter
changes in prepayment expectations) bankruptcy or other financial reorganization;
or
ii Qualitative elements (iv) The disappearance of an active market for a
In general, qualitative factors that are indicative security because of financial difficulties.
of an increase in credit risk are reflected in PD (v) The purchase or origination of a financial asset
models on a timely basis and thus are included at a deep discount that reflects the incurred
in the quantitative assessment and not in a credit loss
separate qualitative assessment. However, if it
is not possible to include all current information An asset that has been renegotiated due to a
about such qualitative factors in the quantitative deterioration in the issuer’s condition is usually
assessment, they are considered separately in a considered to be credit-impaired unless there is
qualitative assessment as to whether there has evidence that the risk of not receiving contractual
been a significant increase in credit risk. If there are cash flows has reduced significantly and there are
qualitative factors that indicate an increase in credit no other indicators of impairment.
risk that have not been included in the calculation
of PDs used in the quantitative assessment, the In making an assessment of whether an investment
Group recalibrates the PD or otherwise adjusts its in sovereign debt is credit-impaired, the Group
estimate when calculating ECLs. considers the following factors:
iii Backstop indicators •• T

he market’s assessment of creditworthiness
as reflected in the bond yields.
Instruments which are more than 30 days past due
••
The rating agencies’ assessments of
or have been granted forbearance are generally
creditworthiness.
regarded as having significantly increased in
••
The Country’s ability to access the capital
credit risk and may be credit-impaired. There is
markets for new debt issuance.
a rebuttable presumption that the credit risk has
••
The probability of debt being restructured,
increased significantly if contractual payments are
resulting in holders suffering losses through
more than 30 days past due; this presumption
voluntary or mandatory debt forgiveness.
is applied unless the Group has reasonable and
•• The international support mechanisms in place
supportable information demonstrating that the
NEM Insurance Plc

to provide the necessary support as ‘lender of last increase in credit risk has occurred for an exposure by
resort’ using days past due and assessing other information
obtained externally.Whenever available, the Group
to that Country, as well as the intention, reflected in monitors changes in credit risk by tracking published
public statements, of governments and agencies external credit ratings. To determine whether published
to use those mechanisms. This includes an ratings remain up to date and to assess whether
assessment of the depth of those mechanisms there has been a significant increase in credit risk at
and, irrespective of the political intent, whether the reporting date that has not been reflected in the
there is the capacity to fulfil the required criteria. published rating, the Group also reviews changes in
Bond yields together with available press and regulatory
information about issuers.
Presentation of allowance for ECL in the state- Where external credit ratings are not available, the
ment of financial position Group allocates each exposure to a credit risk grade
based on data that is determined to predictive of
The Company assesses the possible default events
the risk of default(including but not limited to the
within 12 months for the calculation of the 12month
audited financial statements, management accounts
ECL and lifetime for the calculation of Life Time ECL.
and cash flows projections, available regulatory and
Given the investment policy, the probability of default
press information about the borrowers and apply
for new instruments acquired is generally determined
experienced credit judgement. Credit risk grades are
to be minimal and the expected loss given default
defined by using qualitative and quantitative factors
ratio varies for different instruments. In cases where a
that are indicative of the risk of default and are aligned
lifetime ECL is required to be calculated, the probability
with the external credit rating definition from Moody’s
of default is estimated based on economic scenarios.
and Standards and Poor.
Loan allowances for ECL are presented in the statement
The Group has assumed that the credit risk of a
of financial position as follows:
financial asset has not increased significantly since the
•• Financial assets measured at amortised cost: as a initial recognition if the financial asset has low credit
deduction from the gross carrying amount of the risk at reporting date. The Group considers a financial
assets: asset to have low credit risk when its credit risk rating
•• Financial assets measured at FVOCI: loss allow- is equivalent to the globally understood definition of
ance shall be recognized in the statement of fi- “investment grade”. The Group considers this to be
nancial position because the carrying amount of Baa3 or higher based on the Moody rating.
these assets shall be their fair value. However, the
loss allowance shall be disclosed and recognized As a back stop, the Group considers that a significant
in the fair value reserve. increase in credit risk occurs no later than when the
asset is more than 30 days past due. Days past due
Inputs, assumptions and techniques used for esti- are determined by counting the numbers of days
mating impairment since the earliest elapsed due date in respect of which
When determining whether the credit risk(i.e. Risk full payments has not been received. Due dates are
of default) on a financial instrument has increased determined without considering any grace period that
significantly since initial recognition, the Company might be available to the borrower.
considers reasonable and supportable information
that is relevant and available without undue cost of The Group monitors the effectiveness of the criteria
effort, This includes both qualitative and quantitative used to identify significant increase in credit risk by
information analysis based on the Group’s experience, regular reviews to confirm that:
expert credit assessment and forward looking
information. •• he criteria are capable of identifying significant
T
increase in credit risk before an exposure is in de-
The Group primarily identifies whether a significant fault;
NEM Insurance Plc

•• he criteria do not align with the point in time

T to be released at short notice when and if required.
when the asset becomes 30 days past due; The possible payments of significant insurance claims
•• The average time between the identification of a signifi- are secured by the reinsurance contracts’ clause that
cant increase in credit risk and default appears reason- allows a cash call from the reinsurers for the losses
able exceeding a certain amount based on line of business.
•• Exposures are not generally transferred from 12-
month ECL measurement to credit impaired and Sources of Liquidity Risk
•• There is no unwarranted volatility in loss allowance
Our liquidity risk exposure depends on the occurrence
from transfers between 12-month ECL and Life-
of other risks. Some of the factors that could lead to
time ECL measurement.
liquidity risks are:

Modified financial assets •• eputational loss or rating downgrade, leading to
R
The contractual terms of a financial asset may be inability to generate funds;
modified for a number of reasons, including changing •• Failure of insurance brokers and clients to meet
market conditions and other factors not related to a their premium payment obligation as and when
current or potential credit deterioration of the borrower. due;
An existing financial asset whose terms have been •• Lack of timely communication between Finance
modified may be derecognized and the renegotiated &Investment Division and Claims Department re-
asset recognized as a new financial asset at fair value sulting in mismatch of funds;
in accordance with the accounting policies. When •• Investment in volatile securities; and
the terms of a financial asset are modified and the •• Frequency and severity of major and catastrophic
modification does not result in derecognition, the claims.
determination of whether the asset’s credit risk has
increased significantly reflects a comparison of: Liquidity Risk Management Strategy
The Group’s strategy for managing liquidity risks are
•• Its risk of default occuring at the reporting date
as follows:
based on the modified term; with
•• Maintain a good and optimum balance between
•• The risk of default occuring estimated based on
having sufficient stock of liquid assets, profitability
Data on initial recognition and the original contrac-
and investment needs;
tual terms.
•• Ensure strict credit control and an effective man-
agement of account receivables;
Liquidity Risk •• Ensure unrestricted access to financial markets to
Liquidity risk is the inability of a Group to meet raise funds;
obligations on a timely basis. It is also the inability of a •• Develop and continuously update the contingency
Group to take advantage of business opportunities and funding plan;
sustain the growth target in its business strategy due to •• Adhere to the liquidity risk control limits; and
liquidity constraints or difficulty in obtaining funding at a •• Communicate to all relevant staff on the liquidity
reasonable cost. Our liquidity risk exposure is strongly risk management objectives and control limits.
related to our credit and investment risk profile. The
Group is exposed to daily calls on its available cash Liquidity Risk Appetite/Tolerance
resources from claims to be paid.
Our liquidity risk appetite is defined using the following
parameters:
At 31 December 2023, management does not believe
•• Liquidity gap limits;
the current maturity profile of the Group lends itself to
•• Scenario and Sensitivity Analysis
any material liquidity risk, taking into account the level
•• Liquidity Ratios such as:
of cash and deposits and the nature of its securities
•• Claims ratio
portfolio at year end, as well as the reinsurance
•• Cash ratio
structure of the Group’s insurance portfolio. The
•• Quick ratio
Group’s bank deposits and trading securities are able
NEM Insurance Plc

•• Receivable to capital ratio

•• Technical provision to capital ratio
•• Maximum exposure for single risk to capital ratio
•• Maximum exposure for a single event to capital ratio
•• Retention rate
•• Re-insurance receipts to ceded premium ratio
•• Solvency margin

Short-term insurance contracts
For short-term insurance contracts, the Company funds the insurance liabilities with a portfolio of equity and debt
securities exposed to liquidity risk. The following tables indicate the contractual timing of cash flows arising from
assets and liabilities included in the Company’s ALM framework for management of short-term insurance contracts.
The table below sets out the classification of each class of financial assets and liabilities, and their maturity profiles:
Carrying 1-3 3-6 6 - 12 Above 12

Group Note amount months months months months Total
At 31 December 2023 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Financial assets
Cash & cash equivalent 3 8,002,993 8,028,711 - - - 8,028,711
Financial assets -
- At fair value through profit or loss 4.1 10,463,494 - - - 10,463,494 10,463,494
4.2 75,219 - - - 75,219 75,219
- At amortised cost 4.3 36,355,234 533,063 11,461,910 7,162,790 17,456,873 36,614,636
Loans and receivables 8 108,114 - - 108,114 - 108,114
Other Receivables (5)(8) 2,490,394 869,193 36,347 84,855 1,500,000 2,490,394
57,495,448 9,430,967 11,498,256 7,355,758 29,495,586 57,780,568
Accruals and other payables

(17)(28) 3,651,207 3,651,207 - - - 3,651,207
(excluding non-financial liablities)
3,651,207 3,651,207 - - - 3,651,207
Liquidity Gap 53,844,242 5,779,760 11,498,256 7,355,758 29,495,586 54,129,361
Cumulative liquidity gap 5,779,760 17,278,016 24,633,775 54,129,361
NEM Insurance Plc


Group Note amount months months months months Total
At 31 December 2022 (Restated) N’000 N’000 N’000 N’000 N’000 N’000 N’000
Financial assets
Financial assets -
4.2 53,731 - - - 53,731 53,731
prehensive income
Loans and receivables 8 220,446 - 220,446 - 220,446
Other Receivables (5)(8) 1,175,339 1,028,222 51,532 69,045 26,540 1,175,339
28,287,170 10,272,877 2,387,670 2,865,858 12,832,567 28,358,972
Accruals and other payables (ex- (17)

1,575,721 1,575,721 - - - 1,575,721
cluding non-financial liablities) (28)
1,575,721 1,575,721 - - - 1,575,721
Liquidity Gap 26,711,449 8,697,156 2,387,670 2,865,858 12,832,567 26,783,251

Parent Note amount months months months months Total
At 31 December 2023 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Financial assets
Financial assets -
4.2 75,219 - - - 75,219 75,219
Loans and receivables 8 108,114 108,114 - - - 108,114
Other Receivables (5)(8) 2,229,953 399,269 - 192,709 1,637,976 2,229,953
57,139,565 8,973,714 11,461,910 7,355,498 29,633,562 57,424,684

(17)(28) 3,573,259 3,573,259 - - - 3,573,259
3,573,259 3,573,259 - - - 3,573,259
Liquidity Gap 53,566,306 5,400,455 11,461,910 7,355,498 29,633,562 53,851,425
NEM Insurance Plc


Parent Note amount months months months months Total
At 31 December 2022 (Restated) N’000 N’000 N’000 N’000 N’000 N’000 N’000
Financial assets
Financial assets
- At fair value through profit or
4.1 5,800,623 - - - 5,800,623 5,800,623
loss
4.2 53,731 - - - 53,731 53,731
Loans and receivables 8 220,446 - - 220,446 - 220,446
Other Receivables (5)(8) 1,033,272 803,656 120,576 - 109,040 1,033,272
28,109,274 10,012,482 2,456,714 2,796,813 12,915,067 28,181,076

(17)(28) 1,570,560 1,570,560 - - - 1,570,560
1,570,560 1,570,560 - - - 1,570,560
Liquidity Gap 26,538,714 8,441,922 2,456,714 2,796,813 12,915,067 26,610,516
(b) Financial instruments measured at fair value

IFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques
are observable or unobservable. Observable input reflects market data obtained from independent sources;
unobservable inputs reflect the Group’s market assumptions. These two types of inputs have created the
following fair value hierarchy:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs)
This hierarchy requires the use of observable market data when available. The Group considers relevant and
observable market prices in its valuations where possible.
(c) Fair valuation methods and assumptions
(i) Cash and bank balances

Cash and bank balances represent cash held with other banks. The fair value of these balances is their carrying
amounts.
NEM Insurance Plc

(ii) Equity securities

The fair values of quoted equity securities are determined by reference to quoted prices (unadjusted) in active
markets for identical assets. The fair value of the unquoted equity securities was determined on a net asset
value basis.
(iii) Debt securities

Treasury bills represent short term instruments issued by the Central bank of the jurisdiction where the Group
operates. The fair value of treasury bills and bonds at fair value are determined with reference to quoted
prices (unadjusted) in active markets for identical assets. The estimated fair value of bonds (asset or liability)
at amortised cost represents the discounted amount of estimated future cash flows expected to be received.
Expected cash flows are discounted at current market rates to determine fair value.
(iv) Other assets

Other assets represent monetary assets which usually have a short recycle period and as such the fair values
of these balances approximate their carrying amount.
NEM Insurance Plc

Fair value measurement

Accounting classification measurement basis and fair values
The table below sets out the classification of each class of financial assets and liabilities, and their fair values.
Financial Financial
Financial assets Financial liabilities
assets des- measured at assets measured at Total
ignated as amortized measured at amortised carrying
Group FVTPL cost FVOCI cost amount Fair value
At 31 December 2023 N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents - 8,028,711 - - 8,028,711 8,028,711

Financial assets
- At fair value through profit or loss 10,463,494 - - - 10,463,494 10,463,494
- - 75,219 - 75,219 75,219
- At amortised cost - 36,614,636 - - 36,614,636 36,614,636
Loans and receivables - 108,114 - - 108,114 108,114
Total Financial assets 10,463,494 44,751,460 75,219 - 55,290,173 55,290,173
Borrowings - - - 1,557,737 1,557,737 1,557,737

Other payables - - - 1,620,229 1,620,229 1,620,229
Lease liabilities - - - 473,241 473,241 473,241
Total Financial liabilities - - - 3,651,207 3,651,207 3,651,207
Financial Financial
Group FVTPL cost FVOCI cost amount Fair value
December 31, 2022 (restated) N’000 N’000 N’000 N’000 N’000 N’000
Cash and cash equivalents - - - 8,884,655 8,884,655 8,884,655

Financial assets
- - 53,731 - 53,731 53,731
Total Financial assets 5,800,623 12,444,624 53,731 8,884,655 27,183,633 27,183,633
Borrowings - - - - - -
Other payables - - - 1,539,722 1,539,722 1,539,722
NEM Insurance Plc

Financial Financial
Parent FVTPL cost FVOCI cost amount Fair value
At 31 December 2023 N’000 N’000 N’000 N’000 N’000 N’000

Financial assets
- - 75,219 - 75,219 75,219
prehensive income
Borrowings - - - 1,557,737 1,557,737 1,557,737

Other payables - - - 591,043 591,043 591,043
Financial Financial
Parent FVTPL cost FVOCI cost amount Fair value
December 31, 2022 (restated) N’000 N’000 N’000 N’000 N’000 N’000

Financial assets
- - 53,731 - 53,731 53,731
prehensive income
Borrowings - - - - - -
Other payables - - - 1,534,561 1,534,561 1,534,561
NEM Insurance Plc

51 Capital management Policy

NEM has over the years been deploying capital from earnings and additional equity funds to support growth
in business volumes while striving to meet dividend commitments to shareholders. To be able to continue to
generate and deploy capital both to grow core businesses and reward shareholders, there is need for the
Group to execute the right strategy, the right growth dynamics, the right cost structure and risk discipline as
well as the right capital management.
NEM’s capital management strategy focuses on the creation of shareholders’ value whilst meeting the crucial
and equally important objective of providing an appropriate level of capital to protect stakeholders’ interests
and satisfy regulators.
The Group’s objectives when managing capital are as follows:

•• To ensure that capital is, and will continue to be, adequate for the safety, soundness and stability of the
Group;
•• To generate sufficient capital to support the Group’s overall business strategy;
•• To ensure that the Group meets all regulatory capital ratios and the prudent buffer required by the Board;
•• To ensure that the average return on capital over a 3 -5 years performance cycle is sufficient to satisfy the
expectations of investors;
•• To maintain a strong risk rating;
•• To ensure that capital allocation decisions are optimal, considering the return on economic and regulatory
capital;
•• To determine the capital required to support each business activity based on returns generated on capital
to facilitate growth/expansion of existing businesses (i.e. capital allocation);
•• To establish the efficiency of capital utilization.
(a) Minimum Capital Requirement

The Parent complied with the minimum capital requirement of N3billion for non-life operations. This is shown
under Shareholders’ Fund in the Statement of Financial Position.
(b) Solvency Status

The Parent met the criteria for solvency margin as stated in section 24(1) of the Insurance Act, CAP I17, LFN
2004, the solvency margin maintained is N23,713,851,281.
(c) Capital Adequacy Test

Based on the capital adequacy claculation below, NEM Insurance Plc has a surplus of N38.2 billion (2022:
N26.6 billion).
2023 2022 Restated
N’000 N’000
Shareholders' fund as per Statement of Financial Position 38,695,671 26,983,131

Less:
Intangible Assets (42,161) (15,721)
Deferred tax asset - (253,568)
Due from related parties (488,577) (176,540)
(530,737) (445,829)
Capital base 38,164,934 26,537,302
Management uses regulatory capital ratios to monitor its capital base. Based on the capital base computed
above, the Parent capital base is above the minimum capital requirement of N3billion specified by NAICOM.
NEM Insurance Plc

(D) Determination Of Solvency Margin

2022
2023 Restated
Admissible Inadmissible N’000 N’000
Assets
Cash and cash equivalents 7,082,792 824,759 7,907,551 7,573,184
Financial assets
-FVTPL 10,463,494 - 10,463,494 5,800,623
-Amortised Cost 25,498,791 10,856,443 36,355,234 9,312,413
-FVOCI 75,219 - 75,219 53,731
Trade receivables 354,531 - 354,531 672,356
Reinsurance contract assets 9,433,042 - 9,433,042 9,472,703
Investment in Subsidiary 435,000 - 435,000 -
Staff loans and advances 108,114 108,114 220,446
Other receivables and prepayments - 1,767,309 1,767,309 581,362
Investment Properties 2,353,946 - 2,353,946 -
Property, plant and equipment 1,353,117 2,706,233 4,059,350 1,332,433
Right-of-use Assets - 609,015 609,015 -
Intangible assets 42,161 - 42,161 15,721
Statutory deposit 320,000 320,000 320,000
Admissible assets 57,520,206 16,763,759 74,283,965 35,354,972
Liabilities
Insurance contract liabilities 25,097,847 25,097,847 14,674,166
Other Insurance contracts liabilities 783,901 783,901 487,527
Borrowings 1,557,737 1,557,737 -
Provisions and other payables 2,015,522 2,015,522 1,570,560
Lease liabilities 473,241 473,241 35,999
Retirement benefits obligations - - 29,497
Current income tax liabilities 1,154,348 1,154,348 378,179
Deferred tax payable - 4,505,697 4,505,697 3,687
Admissible liabilities 31,082,597 4,505,697 35,588,294 17,179,615
Solvency margin 26,437,610 18,175,357

A. Minimum share capital 3,000,000 3,000,000
B. 15% of Net premium 6,570,287 3,322,524
C. Higher of A and B 6,570,287 3,322,524
Surplus in solvency margin 19,867,323 14,852,833
Percentage of solvency 75% 82%
The Company’s capital requirement ratio and Solvency margin are above the requirements of the Insurance Act
CAP I17, LFN 2004.
NEM Insurance Plc

Asset and Liability Management

The Group is exposed to a range of financial risks through its financial assets, financial liabilities, reinsurance
assets and insurance liabilities.
Asset and Liability management (ALM) attempts to address financial risks the group is exposed to which
include interest rate risks, foreign currency risks, equity price risks and credit risks. The major financial risk is
that in the long term its investment proceeds are not sufficient to fund the obligations arising from its insurance
and investment contracts. ALM ensures that specific assets of the group is allocated to cover reinsurance and
liabilities of the Group.
The Group manages these positions within an ALM framework that has been developed to achieve long-term
investment returns in excess of its obligations under insurance contracts. The notes below show how the
Group has managed its financial risks.
Company Hypothetication Table as at 31 December 2023
Policyholders funds Shareholders’ funds Total
N’000 N’000 N’000
Assets
Cash and cash equivalents 7,082,792 824,759 7,907,551
Financial assets
-FVTPL 10,463,494 - 10,463,494
-FVOCI - 75,219 75,219
- At amortised cost 7,405,696 28,949,538 36,355,234
Trade receivables - 354,531 354,531
Reinsurance contract assets 9,433,042 9,433,042
Other receivables and prepayment - 1,875,423 1,875,423
Investment in Subsidiaries - 435,000 435,000
Investment properties - 2,353,946 2,353,946
Statutory deposit - 320,000 320,000
Intangible assets - 42,161 42,161
Property, plant and equipment - 4,059,350 4,059,350
Right-of-use Assets - 609,015 609,015
Deferred tax assets - - -
Total assets 34,385,024 39,898,941 74,283,965
Liabilities:
Insurance contract liabilities 25,097,847 - 25,097,847
Other Insurance contract liabilities - 783,901 783,901
Borrowings 1,557,737 1,557,737
Other payables - 2,015,522 2,015,522
Lease liabilities - 473,241 473,241
Retirement benefit obligations - - -
Income tax liability - 1,154,348 1,154,348
Deferred tax liabilities - 4,505,697 4,505,697
Total liabilities 25,097,847 10,490,447 35,588,294
Gap 9,287,177 29,408,495 38,695,672
NEM Insurance Plc

Company Hypothetication Table as at 31 December 2022 (Restated)

Policyholders Shareholders’
funds funds Total
N’000 N’000 N’000
Assets
Cash and cash equivalents 7,573,184 1,268,998 8,842,182
Financial assets
-FVTPL 5,800,623 - 5,800,623
-FVOCI - 53,731 53,731
- At amortised cost - 12,159,020 12,159,020
Trade receivables - 672,356 672,356
Reinsurance contract assets 9,472,703 - 9,472,703
Other receivables and prepayment - 581,362 581,362
Investment in Subsidiaries - 150,000 150,000
Investment properties - 1,813,768 1,813,768
Statutory deposit - 320,000 320,000
Intangible assets - 15,721 15,721
Property, plant and equipment - 3,878,192 3,878,192
Right-of-use Assets - 149,520 149,520
Deferred tax assets - 253,568 253,568
Total assets 22,846,510 21,316,236 44,162,746
Liabilities:
Insurance contract liabilities 14,674,166 - 14,674,166
Other Insurance contract liabilities - 487,527 487,527
Borrowings - - -
Other payables - 1,570,560 1,570,560
Lease liabilities - 35,999 35,999
Retirement benefit obligations - 29,497 29,497
Income tax liability - 378,179 378,179
Deferred tax liabilities - 3,687 3,687
Total liabilities 14,674,166 2,505,449 17,179,615
Gap 8,172,344 18,810,787 26,983,131
The main objectives of the Parent when managing capital are:

to ensure that the Minimum Capital Requirement of N3 billion as required by the Insurance Act CAP I17, LFN
2004, is maintained at all times.
This is a risk based capital method of measuring the minimum amount appropriate for an insurance company
to support its overall business operations in consideration of its size and risk profile. The calculation is based on
applying capital factors to amongst others, the Parent’s assets, outstanding claims, unearned premium reserve
and assets above a certain concentration limit.
NEM Insurance Plc
Other
National
Disclosure
Other National Disclosure 269
Statement Of Value Added - Group 270
Statement Of Value Added - Parent 271
Five Year Financial Summary - Group 272
Five Year Financial Summary - Parent 274
NEM Insurance Plc
Other National Disclosure

Statement Of Value Added - Group
2023 2022 Restated

N’000 % N’000 %
Insurance revenue
Local 52,112,435 31,433,600
Foreign - -
Other Income:
Local 20,024,374 3,244,601
Foreign - -
72,136,809 34,678,201
Bought in Services:
Local (46,328,950) (24,801,763)
Foreign - -
Value Added 25,807,859 100 9,876,438 100
Applied as follows:
Employees
Salaries and other employees benefits 2,310,268 9 1,889,357 19
Provider of Capital
Dividend to Shareholders 1,504,943 6 1,103,625 11
Government
Taxation 5,929,070 23 96,667 1
Retention and Expansion

Depreciation and Amortisation Charges 463,879 2 297,556 3
Contingency reserves 2,650,915 10 1,087,811 11
Retained profit for the year 12,948,785 50 5,401,422 55
Value Added 25,807,859 100 9,876,438 100
Value added represents the additional wealth the Group has been able to create on its own and its employees’
efforts. This statement shows the allocation of the wealth between employees, shareholders, government and
that retained for the future creation of more wealth.
NEM Insurance Plc

Statement Of Value Added - Parent
2023 2022 Restated

N’000 % N’000 %
Insurance Revenue:
Local 51,993,997 31,433,600
Foreign - -
Other Income:
Local 19,960,824 3,191,110
Foreign - -
71,954,821 34,624,710
Bought in Services:
Local (46,080,861) (24,764,539)
Foreign - -
Value Added 25,873,960 100 9,860,171 100
Applied as follows:
Employees
Salaries and other employees benefits 2,099,928 8 1,877,383 19
Provider of Capital
Dividend to Shareholders 1,504,943 6 1,103,625 11
Government
Taxation 5,924,145 23 94,941 1
Retention and Expansion

Depreciation and Amortisation Charges 439,452 2 295,557 3
Contingency reserves 2,650,915 10 1,087,811 11
Retained profit for the year 13,254,576 51 5,400,854 55
Value Added 25,873,960 100 9,860,171 100
Value added represents the additional wealth the Company has been able to create by its own and its employees’
efforts. This statement shows the allocation of the wealth between employees, shareholders, government and
that retained for the future creation of more wealth.
NEM Insurance Plc

Five Year Financial Summary - Group
2022 2021 2020 2019
2023 Restated Restated Restated Restated
N’000 N’000 N’000 N’000 N’000
Assets
Cash and Cash Equivalents 8,002,993 8,878,011 7,895,469 7,352,189 8,101,885
Financial assets
- At fair value through profit or loss 10,463,494 5,800,623 5,354,017 4,479,121 2,485,564
75,219 53,731 84,884 81,318 70,028
- At amortised cost 36,355,234 12,159,020 8,143,491 6,105,529 2,130,855
Insurance Contract assets - -
Trade Receivable 450,143 672,356 1,479,056 228,140 207,484
Reinsurance Contract Assets 9,433,042 9,472,703 7,428,571 4,703,036 5,248,767
Investment in Associate - - - 412,741 435,165
Investment Properties 2,353,946 1,813,768 1,706,167 1,617,609 1,589,278
Intangible Assets 54,110 15,721 10 10 1,225
Property, plant and equipment 4,202,175 3,886,188 3,794,957 2,922,422 3,031,838
Right-of-use Assets 609,015 149,520 209,920 - -
Other Receivables and Prepayment 2,148,365 723,429 414,712 470,727 683,375
Statutory Deposit 320,000 320,000 320,000 320,000 320,000
Deferred tax asset - 256,411 257,505 263,035 291,203
Total Assets 74,467,735 44,201,481 37,088,759 28,955,877 24,596,667
Liabilities
Insurance Contract Liabilities 25,285,724 14,674,166 11,557,642 7,939,241 8,190,768
Other Insurance contract liabilities 857,381 487,527 410,728 585,327 298,046
Borrowings 1,557,737 -
Other Payables 2,093,470 1,575,721 1,531,528 1,267,300 1,109,555
Lease Liabilities 473,241 35,999 139,623 47,963 -
Income Tax Liabilities 1,155,152 379,224 623,508 675,783 462,419
Deferred Tax Liability 4,507,627 3,687 10,387 - 356,500
Retirement Benefit Obligations - 29,497 52,414 78,960 81,635
Total liabilities 35,930,332 17,185,821 14,325,830 10,594,574 10,498,923
Net Assets 38,537,404 27,015,659 22,762,929 18,361,303 14,097,744
Equity
Share Capital 5,016,477 5,016,477 5,016,477 5,016,477 2,640,251
Share Premium - - - - 272,551
Other Reserves-gratuity - 58,581 72,495 71,147 111,455
FVOCI reserve (46,277) (67,765) (36,612) (40,178) (51,468)
Asset revaluation reserve 2,107,964 2,107,964 2,107,964 1,094,475 1,094,475
Contingency Reserve 9,837,510 7,186,595 6,098,784 5,213,927 4,198,848
Retained Earnings 21,578,802 12,713,807 9,503,821 7,005,455 5,831,632
Non controlling interests 42,927
Shareholders' Fund 38,537,403 27,015,659 22,762,929 18,361,303 14,097,744
NEM Insurance Plc

Five Year Financial Summary - Group
2022 2021 2020 2019
N’000 N’000 N’000 N’000 N’000
Income Statement
Insurance revenue 52,112,435 31,433,600 26,545,254 21,682,189 19,259,541
Insurance Service exp (34,218,973) (22,693,835) (18,947,902) (13,377,938) (12,835,699)
Net expenses on Reinsurance
(12,795,475) (2,480,675) (747,957) (2,324,108) (2,075,145)
contracts
Insurance Service Result 5,097,987 6,259,090 6,849,395 5,980,143 4,348,697
Other Revenue 19,789,453 3,071,200 1,785,351 2,490,666 1,143,774
Other Expenses (6,009,585) (3,832,201) (4,207,514) (3,289,820) (3,553,738)
Profit Before Tax 18,877,855 5,498,089 4,427,232 5,180,989 1,938,733
Income tax (5,929,070) (96,667) (141,043) (96,337) 456,633
Profit For the Year 12,948,785 5,401,422 4,286,189 5,084,652 2,395,366
Other Comprehensive (loss)/income
for the year 10,025 (45,067) 1,018,403 (29,018) (35,712)
Total Comprehensive Income 12,958,810 5,356,355 5,304,592 5,055,634 2,359,654
for the year
Basic EPS (Kobo) 260 108 85 96 45
Diluted Basic EPS (Kobo) 260 108 85 96 45
NEM Insurance Plc

Five Year Financial Summary - Parent
2022 2021 2020 2019
N’000 N’000 N’000 N’000 N’000
Assets
Cash and Cash Equivalents 7,907,551 8,842,182 7,841,181 7,326,758 8,095,230
Financial Assets
- At fair value through profit or loss 10,463,494 5,800,623 5,354,017 4,479,121 2,485,564
75,219 53,731 84,884 81,318 70,028
- At amortised cost 36,355,234 12,159,020 8,143,491 6,105,529 2,130,855
Insurance contract assets - - - - -
Trade Receivable 354,531 672,356 1,479,056 228,140 207,484
Reinsurance Contract Assets 9,433,042 9,472,703 7,428,571 4,703,036 5,248,767
Investment in Associate - - - 412,741 435,165
Investment in Subsidiary- NEM
435,000 150,000 150,000 100,000 50,000
Asset Management Limited
Investment Properties 2,353,946 1,813,768 1,706,167 1,617,609 1,589,278
Intangible Assets 42,161 15,721 10 10 1,225
Property, plant and equipment 4,059,350 3,878,192 3,784,962 2,922,422 3,030,737
Right-of-use Assets 609,015 149,520 209,920 - -
Other Receivables and
1,875,423 581,362 263,776 374,862 627,253
Prepayments
Statutory Deposit 320,000 320,000 320,000 320,000 320,000
Deferred tax asset - 253,568 253,568 253,568 281,736
Total Assets 74,283,965 44,162,746 37,019,603 28,925,114 24,573,322
Liabilities
Insurance Contract Liabilities 25,097,847 14,674,166 11,557,642 7,939,241 8,190,768
Other insurance contract liabilities 783,901 487,527 410,728 585,327 298,046
Borrowings 1,557,737 - -
Other Payables 2,015,522 1,570,560 1,499,104 1,266,000 1,105,351
Lease liabilities 473,241 35,999 139,623 47,963 -
Income Tax Liabilities 1,154,348 378,179 618,736 670,286 457,987
Deferred Tax Liability 4,505,697 3,687 10,387 - 356,500
Retirement Benefit Obligations - 29,497 52,414 78,960 81,635
Total liabilities 35,588,294 17,179,615 14,288,634 10,587,777 10,490,287
Net Assets 38,695,672 26,983,131 22,730,969 18,337,337 14,083,035
Equity
Share Capital 5,016,477 5,016,477 5,016,477 5,016,477 2,640,251
Share Premium - - - - 272,551
Other Reserves-gratuity - 58,581 72,495 71,147 111,455
FVOCI reserve (46,277) (67,765) (36,612) (40,178) (51,468)
Asset revaluation reserve 2,107,964 2,107,964 2,107,964 1,094,475 1,094,475
Contingency Reserve 9,837,510 7,186,595 6,098,784 5,213,927 4,198,848
Retained Earnings 21,779,997 12,681,279 9,471,861 6,981,489 5,816,923
Shareholders' Fund 38,695,671 26,983,131 22,730,969 18,337,337 14,083,035
NEM Insurance Plc

Five Year Financial Summary - Parent
2022 2021 2020 2019
N’000 N’000 N’000 N’000 N’000
Income Statement
Insurance revenue 51,993,997 31,433,600 26,545,254 21,682,189 19,259,541
Insurance Service exp (34,116,367) (22,693,835) (18,947,902) (13,377,938) (12,835,699)
Net expenses on Reinsurance
(12,795,475) (2,480,675) (747,957) (2,324,108) (2,075,145)
contracts
Insurance Service Result 5,082,155 6,259,090 6,849,395 5,980,143 4,348,697
Other Revenue 19,725,902 3,054,134 1,743,972 2,449,659 1,099,009
Other Expenses (5,629,337) (3,817,429) (4,181,855) (3,260,991) (3,530,785)
Profit Before Tax 19,178,721 5,495,795 4,411,512 5,168,811 1,916,921
Income tax (5,924,145) (94,941) (133,317) (93,416) 461,133
Profit For the Year 13,254,576 5,400,854 4,278,195 5,075,395 2,378,054
Other Comprehensive (loss)/income
for the year 10,025 (45,067) 1,018,403 (29,018) (35,712)
Total Comprehensive Income 13,264,601 5,355,787 5,296,598 5,046,377 2,342,342
for the year
Basic EPS (Kobo) 264 108 85 96 45
Diluted Basic EPS (Kobo) 264 108 85 96 45
Shareholders
Information
Proxy Form 277
Shareholder’s Information Update 279
E- Dividend Mandate Activation Form 281
NEM Insurance Plc
Proxy Form
NUMBER OF SHARES HELD: FOR AGAINST
1.0 ORDINARY BUSINESS
To receive the account and the Reports thereon
To declare a dividend
To re-elect Mr. Papa Ndiaye as a Director
To re-elect Mr. Kelechi Okoro as a Director
To ratify the appointment of Mr. Tope Smart as Chairman of the Company
To ratify the appointment of Mr. Andrew Ikekhua as Managing Director of the
Company
To ratify the appointment of Mr. Idowu Semowo as Executive Director of the
Company
To ratify the appointment of Chief Anthony Aletor as a Non – Executive Director of
the Company
To ratify the appointment of Mrs. Abisola Giwa - Osagie as a Non – Executive
Director of the Company
To ratify the appointment of Dr. Daphne Oterie Dafinone as a Non- Executive
Director of the Company
To ratify the appointment of the External Auditors
To authorize the Directors to fix the remuneration of the External Auditors
To elect members of the Audit committee
To disclose the Remuneration of Managers of the company in line with Section 257
of the Companies and Allied Matters Act, 2020
2.0 SPECIAL BUSINESS
To approve the remuneration of Non-Executive Directors.
To consider and if thought fit, pass the resolution as an ordinary resolution of the
Company: “That the general mandate given to the company to enter into recurrent
transactions with related parties for the company’s day-to-day operations, including
amongst others the procurement of goods and services, on normal commercial
terms be and is hereby renewed.
Indicate with “X” in the appropriate box how you wish your vote to be cast on the resolutions set out above.
Unless otherwise instructed, the Proxy will vote or abstain from voting at his / her discretion. Before posting
the above form, please tear off this part and retain it for admission to the meeting.
ADMISSION FORM
NEM INSURANCE PLC 54th ANNUAL GENERAL MEETING
Please admit the shareholder named on this form or his duly appointed proxy to the Annual General Meeting to be held at:
The Shell Hall, Muson Centre,

8/9, Marina, Onikan, Lagos.
On Tuesday 2nd July 2024 at 9.00am
Name of Shareholder(s):
……………………..……………………………………………………………………………….………………………….………..
Note: You are requested to sign this form at the entrance in the presence of the Registrar on the day of AGM………………
……………………………………………………………………………….………………………………………………………….
NEM Insurance Plc
Proxy Form Cont’d

I/We……………………………………………………………………………………………………………………………………..
being a Shareholder/Shareholders of NEM Insurance Plc, hereby appoint any of the underlisted persons as my/our Proxy to
act and vote for me/us on my/our behalf at the 54th Annual General Meeting to be held on Tuesday, 2nd July 2024 and at any
adjournment thereof.
1. Mr. Tope Smart Chairman
2. Mr. Andrew Ikekhua Managing Director
3. Mr. Idowu Semowo Executive Director
3. Mrs. Ifunanya Iwuagwu Company Secretary
4. Mr. Taiwo Oderinde Shareholder
5. Mr. Samuel Mpamaugo Shareholder
6. Mr. Christopher Ogba Shareholder
Dated this ……………………………. Day of …………………………………………….. 2024
Signature: ………………………………………………………………………………………………….………………….………..
NOTE:
1. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a Proxy in his stead. All
proxies must reach the Registrars, Apel Capital Registrars Limited 8, Alhaji Bashorun Street off Norman Williams
Crescent South-West Ikoyi, Lagos or emailed to registrars@apel.com.ng not less than 48 hours before the time of
holding the meeting. A proxy need not to be a member of the company.
2. In the case of joint shareholders any one of such may complete the form, but the names of all joint shareholders
must be stated.
3. It is a requirement of the law under the Stamp Duties Act. Cap S8 Laws of Federation of Nigeria 2004 that
any instrument of proxy to be used for the purpose of voting by any person entitled to vote at any meeting of the
shareholders must bear a Stamp Duty. This shall be at the company’s expense.
4. If the shareholder is a corporation this form must be under its common seal or under the hand of any officer or
attorney duly authorized in that behalf.
IMPORTANT
Please insert your name in BLOCK CAPITALS on both proxy and admission forms.
NEM Insurance Plc
Apel Capital
Registrars Limited
PASSPORT
Shareholder’s information
PHOTOGRAPH HERE
SHAREHOLDER’S INFORMATION UPDATE
The Registrar,
Tick Name of Company Shareholder’s Acct NO.
ADAS PROGRAMME
Apel Capital Registrars Limited LIMITED
8, Alhaji Bashorun Street AIICO BALANCED FUND
Off Norman Williams Crescent S.W. Ikoyi ANINO INT’L PLC

Lagos State.
ARBICO PLC
CALIPHATE SUKUK
SPV LIMITED
Kindly update my information with the following details below: CHAPEL HILL DENHAM
MONEY MARKET FUND
CITITRUST FINANCIAL
FULL NAME SERVICES PLC
EUNISELL
INTERLINKED PLC
FSL ASSET MANAGEMENT

MUTUAL FUND
CONTACT ADDRESS INTERNATIONAL

BREWERIES PLC
JEWEL SUKUK SPV LIMITED
JINLAS NIGERIA PLC
KSIP FUNDING SPV

EMAIL ADDRESS LIMITED SERIES 1
KSIP FUNDING SPV
LIMITED SERIES 2
LAGOS COMMODITIES
& FUTURES EXCHANGE
LASACO
MOBILE NUMBER
ASSURANCE PLC
LEAD UNIT TRUST SCHEME
LINKAGE ASSURANCE PLC
MANZ SPV LIMITED
REMARK MASS TELECOM

INNOVATION PLC
METAL SECURITY
PRODUCTS LTD
MUTUAL BENEFITS
ASSURANCE PLC
MUTUAL TRUST
MICROFINANCE BANK LTD
NCR NIGERIA PLC
NEM INSURANCE PLC
Thank you, OGC FOODS &

BEVERAGES LIMITED
PARAMOUNT EQUITY
Yours faithfully FUND
PHARMA DEKO PLC

Signature(s) Company seal (if applicable)
RED STAR EXPRESS PLC
RICHGREEN MASTER
INVESTMENT LIMITED
SKYWAY AVIATION
HANDLING CO. PLC
Joint/Company’s Signatories TAJ SUKUK ISSUANCE
PROGRAMME SPV PLC
THE INITIATES PLC

THE NIGERIA FOOTBALL
FUND
VITAL PRODUCTS LIMITED
Address: 8, Alhaji Bashorun Street, Off Norman Williams Crescent, S.W. Ikoyi Lagos
Email: registrars@apel.ng | Tel: 07046126698
NEM Insurance Plc
SECOND FOLD HERE

Please Affix
Postage Stamp
FIRST FOLD HERE

APEL Capital Registrars Limited
8, Alhaji Bashorun Street
Off Norman Williams
Crescent South West Ikoyi
Lagos
THIRD FOLD HERE
280
Apel Capital
Registrars Limited
PASSPORT
PHOTOGRAPH HERE
E-DIVIDEND MANDATE ACTIVATION FORM
Please complete all section of this form to make it eligible for

processing and return to the address below Tick Name of Company Shareholder’s Acct NO.
ADAS PROGRAMME
LIMITED
The Registrar,
Apel Capital Registrars Limited. AIICO BALANCED FUND

ANINO INT’L PLC
Off Norman Williams Str, S.W Ikoyi Lagos.
ARBICO PLC
I/We hereby request that henceforth, all my/our Dividend Payment(s) CALIPHATE SUKUK
due to me/us from my/our holdings in all the companies ticked at the SPV LIMITED
right hand column be credited directly to my/our bank detailed below: CHAPEL HILL DENHAM
MONEY MARKET FUND
CITITRUST FINANCIAL
BVN SERVICES PLC
EUNISELL
BANK NAME
INTERLINKED PLC
FSL ASSET MANAGEMENT

MUTUAL FUND
ACCOUNT NUMBER INTERNATIONAL
BREWERIES PLC
ACCOUNT OPENING DATE JEWEL SUKUK SPV LIMITED
JINLAS NIGERIA PLC

SHAREHOLDER’S ACCOUNT INFORMATION
KSIP FUNDING SPV
LIMITED SERIES 1
Surname/Company name First Name Other Name KSIP FUNDING SPV
LIMITED SERIES 2
LAGOS COMMODITIES
& FUTURES EXCHANGE
Address LASACO
ASSURANCE PLC
LEAD UNIT TRUST SCHEME
City State Country

LINKAGE ASSURANCE PLC
MANZ SPV LIMITED
Previous Address(if any) MASS TELECOM

INNOVATION PLC
METAL SECURITY
PRODUCTS LTD
CHN (if any) MUTUAL BENEFITS
ASSURANCE PLC
MUTUAL TRUST
MICROFINANCE BANK LTD
Mobile telephone 1 Mobile telephone 2
NCR NIGERIA PLC
NEM INSURANCE PLC

Email address OGC FOODS &
BEVERAGES LIMITED
PARAMOUNT EQUITY
FUND
Signature(s) Company seal (if applicable) PHARMA DEKO PLC
RED STAR EXPRESS PLC
RICHGREEN MASTER
INVESTMENT LIMITED
Joint/Company’s Signatories SKYWAY AVIATION

HANDLING CO. PLC
TAJ SUKUK ISSUANCE
PROGRAMME SPV PLC
THE INITIATES PLC

THE NIGERIA FOOTBALL
Note: This service cost N150. FUND
VITAL PRODUCTS LIMITED
Address: 8, Alhaji Bashorun Street, Off Norman Williams Crescent, S.W. Ikoyi Lagos
Email: registrars@apel.ng | Tel: 07046126698
NEM Insurance Plc
SECOND FOLD HERE

Please Affix
Postage Stamp
FIRST FOLD HERE

APEL Capital Registrars Limited
Off Norman Williams
Crescent South West Ikoyi
Lagos
THIRD FOLD HERE
282

Nem Annual Report Revised Final

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VALUE

NEM Insurance Plc

Mr. Tope Smart

Brief history about

It became a Nigerian branch in Nigeria, was into Life and

Multi Perils Crop Policy

BONDS MARINE AGRICULTURE ENGINEERING

Notice of 54th Annual

3. To re-elect the following Non-Executive Directors that are retiring by rotation.

4. To ratify the appointments of the following Directors:

6. To elect members of the Audit Committee.

7. To disclose the Remuneration of Managers of the Company.

8. To approve the remuneration of Non-Executive Directors.

Notice of 54th Annual

II. CLOSURE OF THE REGISTER OF MEMBERS

III. UNCLAIMED DIVIDEND

IV. DIVIDEND PAYMENT

Notice of 54th Annual

VI. STATUTORY AUDIT COMMITTEE

VII. LIVE STREAMING OF THE AGM

VIII. RE-ELECTION OF DIRECTORS

X NO VOTING BY INTERESTED PARTIES

Notice of 54th Annual

XII E-ANNUAL REPORT

BY ORDER OF THE BOARD

Company Secretary Registrars

Corporate Head Office Auditors

Corporate Information Cont’d

Corporate Information Cont’d

Abuja - Garki Ibadan Kaduna

Insurance contract liabilities 25,285,724 14,674,166 10,611,558 72

Results at a Glance Cont’d

Insurance contract liabilities 25,097,847 14,674,166 10,423,681 71

Chairman’s Statement Cont’d

This trend of excellent performance

In real terms, the non-oil sector contributed Insurance Revenue

Non-oil sources remained the focal point

Chairman’s Statement Cont’d

Investment Income from regulatory authorities and adopted The Parent

Chairman’s Statement Cont’d

Human Capital Development Prospects

MD/CEO Report Cont’d

MD/CEO Report Cont’d

2. PRINCIPAL ACTIVITIES AND CORPORATE DEVELOPMENT

SUMMARY OF THE RESULT Group Parent

Insurance Revenue 52,112,435 31,433,600 51,993,997 31,433,600

Profit before tax 18,877,855 5,498,089 19,178,721 5,495,795

REPORT OF DIRECTORS Cont’d

The Chief Executive Officer

Annual Board Appraisal

(A) ACTIVITIES OF THE BOARD

REPORT OF DIRECTORS Cont’d

Mrs. Abisola Non – Executive Director

REPORT OF DIRECTORS Cont’d

(B) BOARD COMMITTEES

1. Mrs. Olayinka Aletor Chairman till 16th August 2023    –

Enterprise and Risk Management Committee.

REPORT OF DIRECTORS Cont’d

1. Chief Ede Dafinone Chairman till 16th August 2023  Resigned