The Nation Newspaper

Category: Insurance

  • PFAs invest N3.6t in Fed Govt bonds

    PFAs invest N3.6t in Fed Govt bonds

    Nigeria’s pension fund has continued to grow as it hit N6.49 trillion in April 2017 from N6.41 trillion recorded in March 2017, The Nation has learnt.

    This was made known in a report entitled: Summary of Pension Fund Assets as at April 30, 2017 obtained by The Nation from the industry regulatory body, the National Pension Commission (PenCom).

    Out of the total fund, Pension Fund Administrators (PFAs) with the approval of the National Pension Commission invested a major chunk of the fund totaling N3.6 trillion in Federal Government Securities, representing 78.91 per cent of the fund.

    The PFAs also invested 15.66 per cent into Treasury Bills to the tune of N1.02 trillion. A further breakdown, according to the report, showed that while N480 billion was invested in Domestic Ordinary Shares, N92 billion was invested in Foreign Ordinary Shares representing 7.40 per cent and 1.41 per cent.

    Under Local Money Market Securities, the PFAs invested N409 billion with banks, and N44 billion in Commercial Papers representing 6.26 and 0.69 per cent. They also invested N126.1 billion into state government Securities while corporate debt securities had N311 billion.

    Meanwhile, Retirement Savings Account (RSA) Active Funds has risen to N4.4 trillion from N4.34 trillion representing 68 per cent of the total fund. RSA retirees had the second largest growth of 1.25 per cent from N484 billion in March to N490 billion in April. This is followed by Closed Pension Fund Administrators (CPFAs) with N902 billion representing 14 per cent of the total fund.

  • Lagos trains directors on new trends

    The Lagos State Government  is involved in continuous training of its workforce in all  parts of  the civil service.

    The government has just concluded  a four-day workshop  for its directors with the theme: Effective strategic management for repositioning and higher responsibilities, organised by the Ministry of Establishments, Training and Pensions in conjunction with Messrs Novo Consult Limited in Lagos.

    Governor Akinwunmi Ambode  said workers are being trained to align with new trends.

    Ambode, who was represented by the Commissioner, Ministry of Establishments, Training and Pensions, Dr. Akintola Benson, maintained that the state had flagged off various training, seminars and programmes aimed at making the state’s civil service more proactive to various needs of the citizens.

    He stated that the training became necessary due to the roles the directors play in the state. He said it is aimed at restrategising the workforce, stressing that the state seeks to ensure its workforce get the best of training in the country and compete globally.

    He said: “The workforce remains the real engine of growth of our economy. Presently, Lagos is the best in the whole of Nigeria. The governor has decided to ensure continuous and adequate exercise to enable the public service in the state, which is the real engine room  compete effectively with their counterparts not only in Nigeria but in the United Kingdom, United States and other developed economies.

    “We are not limiting our success to only Nigeria. We are thinking of how to make our public servants compete favourably in any condition they find themselves across the country, Africa and in the world. The enormous value that knowledge and skills training bring to bear on the attainment of the strategic objectives of the government and the public service of Lagos State cannot be overemphasised’’.

    He said officers  participating in the training would be the ambassadors and seed-propagating agents of the administration’s resolve to re-orientate the Lagos State Public Service, saying that at the end of the training, the directors would imbibe strategies that would make them discharge their duties more effectively.

    The commissioner said further:“It is always helpful to remember that an effective strategy provides a picture of the desired long-term future.  In order to make sound day-to-day decisions, all members of the organisation must be able to begin with the end in mind.  All steps must, ultimately, keep the state on course toward the long-term objective.

    “Effective strategy results from the varied inputs of a diverse group of thinkers and participants in strategic decision-making must be free  to state contrary opinions. It is my expectation that all participants would obtain a firm grasp of these steps and fully comprehend the demands they make on management before the end of this training. Furthermore, I hope the analysis above underscores the importance of this seminar for the Lagos State Public Service.”

    He urged the participants to ensure that their strategic team is ready to make effective decisions.

  • NCRIB to operators: canvass projects insurance in budget

    NCRIB to operators: canvass projects insurance in budget

    Following the signing of the N7.44 trillion 2017 budget and the promise to release N350 billion for capital projects, the Nigerian Council of Registered Insurance Brokers, (NCRIB) has urged insurance industry operators  to  canvass for assets insurance as obtainable in other climes.

    NCRIB President, Kayode Okunoren, gave the advice at the group’s monthly Members’ Evening in June, hosted by Saham Unitrust Insurance limited in Lagos.

    Speaking on budget implementation, Okunoren appealed to Federal Government to always consider the plight of common man  and make constant efforts at removing bottlenecks and bureaucratic restraints to  budget implementation.

    He said it is disheartening to note that a budget of 12 months calendar got the ascent of the Federal Government for implementation at half of the same year. “We like to join well-meaning Nigerians to commend the Federal Government on the recent signing of the N7.44 trillion budget for 2017, ending several months of speculations over the status of the document. With the signing of the budget, and the consequent promise of government to release N350 billion for capital projects, it is hoped that the nation would successfully get out of economic recession.

    “The fact that the funds would be substantially spent on capital projects needs to be applauded.  In the light of this, the NCRIB is advocating that the expenditure be closely monitored to ensure it is diligently executed.  It is our hope that the insurance industry would also take advantage of this expenditure to canvass for insurance of those assets as obtainable in other climes.

    “A time like this is quite apt to appeal to the Federal Government to always ensure early preparation of national budgets so as to forestall the mistakes of the past. It is disheartening to note that a budget of 12 months calendar got the ascent of the Federal Government for implementation at the half of the same year.

    “We appeal to our government to always put into consideration the plight of common man in the street and make constant efforts in removing all critical bottlenecks and bureaucratic restraints to prompt signing of budget into law.”

    The Managing Director of Saham Unitrust, John Ijerheme, said the new management is poised to reposition the company to play a leading role in the industry, adding that following the repositioning strategy of the company, premium income grew by 40 per cent in 2017.

    He added that the company has paid a total of N318 million as claims as at May this year against N315 million it paid at the same period last year.

    He further assured the brokers that the company will continue to put in its best to ensure that they deliver at all times.

  • FBNInsurance, Ojumah bag Sanlam awards

    FBNInsurance Limited, a member of the FBNHoldings Company, associated with Sanlam Group SA, has been adjudged the winner of the Sanlam Emerging Markets (SEM) Cup of Nations.

    In the same vein, its Managing Director/Chief Executive Officer, Val Ojumah, won the coveted Sanlam Group CEO Award.

    Marketing and Corporate Communications Manager, FBNInsurance, Elizabeth Agugoh, who made this known to reporters in Lagos, said the announcements were made at the 2017 Sanlam Group Chief Executive Award, which held at the firm’s Senior Leadership Conference in Cape Town, South Africa.

    “According to the competition rules, the SEM Cup of Nations is designed to motivate the staff of the various country operations to over achieve and exceed the set targets and budgets, and deliver sustainable growth over the previous year’s results. It is also to foster a spirit of competition between the various businesses in the Sanlam Emerging Markets (SEM) cluster.

    “In his congratulatory message to the winners of this year’s awards, Group CEO, Sanlam Emerging Markets, Ian Kirk,  praised Ojumah’s leadership, vision, commitment and sheer hard work that have been instrumental in taking FBNInsurance to great heights,” she said.

    He further reiterated the pride of place of FBNInsurance within the Sanlam family. “There are 200,000 policies on the books, making it the third biggest individual life book in SEM Africa after Namibia, 270,000 and Botswana 315,000.

    “The company now has more than 2000 agents with one of the highest productivity rates in SEM. Over and above all this, FBNInsurance also makes a significant contribution to SEM’s value of new business (VNB). Incorporated seven years ago, FBNInsurance has defied the odds to become one of the leading life insurers in Nigeria by consistently delivering on its strategic objectives and offering responsive insurance products to the Nigerian market. The Sanlam Group is one of the largest financial services conglomerates in Africa,” he added.

  • NAICOM approves STI 2016 accounts

    Sovereign Trust Insurance (STI) Plc has got the nod of the National Insurance Commission (NAICOM) for its 2016 audited financial statements.

    This was contained in a statement by its Head of Corporate Communications & Brand Management, Segun Bankole, who noted that a lot of corporate organisations and financial Institutions in Nigeria confirmed that 2016 was a difficult one for business owners and operators alike with attendant challenges, and amidst a recessed economy that is yet to abate.

    According to him, despite the harsh operating environment during the year, the underwriting firm grew its balance sheet size from N9.2 billion in 2015 to N9.5 billion in 2016. Although there was a downward shift in the Gross Premium Written when compared to the same period ended December 31, 2015. The company ended the year 2016 with a Gross Premium Income of N6.3billion as against N7.1billion in 2015 reflecting revenue shortfall of about N732 million.

    The company, according to him, showed considerable signs of resilience in some aspects of its operations, which to many in the Industry, portend a promising future for the firm as its investment income grew from N214million in 2015, to N281million in 2016.

    As a result of the company’s effective claims administration, claims payment in 2016 reduced from N1.5billion in 2015, to N1.4billion in the year under review. The total comprehensive income for the year net of tax, rose from N19million in 2015 to N186million in 2016. Its profit after tax, however, reduced from N557million in 2015, to N23million in the year under review.

    He said shareholders of the company can begin to look forward to a brighter future ahead as the murky economic situation that pervaded operations of most corporate organisations in the country is beginning to clear.

  • Osinbajo, others for 2017 insurance confab

    The insurance industry is set to hold its 2017 Conference from July 9 to 11 at the the Transcorp Hilton, Abuja.

    The Conference with the theme: “Nigerian open for Business”. will be declared open by the Acting President, Professor Yemi Osinbajo (SAN) while the Minister of Finance, Mrs. Kemi Adeosun will give the goodwill message with Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Mohammed Kari as the Chief Host

    The Planning Committee Chairman  for this year’s conference, Shola Tinubu, made this known at a media briefing in Lagos, meant to apprise the public with activities preparatory to the conference.

    According to him, the conference is the third in the series since its conception by the Insurance Industry Consultative Council (IICC), which is the amalgamation of all the constituent arms of the insurance industry, including the Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB), Institute of Loss Adjusters of Nigeria, Chartered Insurance Institute of Nigeria (CIIN) and the National Insurance Commission (NAICOM), which serves as the co-ordinating arm.

    He said the conference is one of the programmes of the IICC aimed at fostering intellectual and professional development of insurance practitioners and further creating a platform for networking and exchange of ideas between industry operators and critical stakeholders in the nation’s economy.

    He said: “The 2017 conference is being organised to further underscore the aim of the industry to continually upscale the knowledge of insurance operators and other professionals in the financial services sector as well as other stakeholders about contemporary dynamics in the economic development of the country and the globe generally. The conference would also highlight the catalytic roles, which the industry in achieving financial inclusion and by so doing, accelerating its contributions to Nigeria’s Gross Domestic Product (GDP).

    “It is instructive to state that the theme of this year’s conference is quite apt in view of the policy direction of the government towards the Ease of Doing Business Initiatives, being spearheaded by the Presidential Enabling Business Environment Council (PEBEC) under the Chairmanship of the Acting President, Professor Yemi Osinbajo, SAN, and the Minister of Industry Trade and Investment, Mr. Okechukwu Enelamah as the Vice Chairman. PEBEC’s ultimate thrust is to dismantle all inhibitions militating against doing business in Nigeria has been doing well in trying to make the country more attractive for foreign investment,” he said.

    He noted that the planning committee will parade an array of highly resourceful speakers to do justice to the subject of discourse at the event. Chairman, Tony Elumelu Foundation, Mr. Tony Elumelu,  will discuss the theme  paper, while Finance  Minister, Mrs. Kemi Adeosun, is expected to chair the session. A team of seasoned discussants, notably Dr. Joseph Nnanna; Deputy Governor of Central Bank of Nigeria; Alhaji Kyari Abba Bukar, former Chairman of the Nigerian Economic Summit Group and Mrs. Yewande Sadiku, Executive Secretary of Nigeria Investment Promotion Commission, among others will be discussants.

  • ‘Cross River’ll insure its assets, investments’

    ‘Cross River’ll insure its assets, investments’

    •Partners brokers

    CROSS  River State Governor Benedict Ayade has promised to insure the state’s investments and assets.

    Ayade made the pledge while declaring open the Chief Executive Officers Retreat of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Calabar at the weekend.

    The governor, who was represented by the Secretary to the State Government (SSG), Tina Agbor, assured the NCRIB of the  government’s patronage in insuring its numerous assets and investments.

    The governor said the state   would partner the brokers to ensure the attainment of their asociation’s objectives.

    He said: “We fully understand the critical importance of insurance to all of our developmental goals and while creating the enabling environment for businesses and other forms of investment to thrive, we shall key in appropriately by taking up insurance policies to cover our investments across the state.

    “As decision makers and managers of critical sector of our national economy, I charge the Council to come up with strategies that will enhance policy consistency and sustainability in the insurance sub- sector as this is key to multi-sectoral development.”

    The governor urged the Council to come up with more proactive measures that would tackle the problems of insurance in the country.

    Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Mohammed Kari, enjoined the Council to use the opportunity provided by the retreat to brainstorm on modalities to tackle the poor acceptance of insurance products among the Nigerians.

    According to him, NAICOM and NCRIB are partners in ensuring insurance penetration. He decried the attitude of Nigerians to insurance products, especially the six compulsory ones.

    The Commissioner, represented by the Deputy Commissioner for Insurance, Technical, Sunday Thomas, urged insurance brokers to improve on service delivery to reduce the gap by creating more intermediaries.

    “The Commission would partner the Cross River State Government and other state governments to ensure the enforcement of compulsory insurances. NAICOM would also appreciate contributions on how to move the industry forward,” he said.

    President of the Council, Kayode Okunoren, said the choice of the retreat’s theme, ‘Possibilities, possibilities, possibilities’ was apt in view of the challenges facing the nation and its economy.

    Okunoren noted that the indices available revealed that the  economy was gradually coming out of recession.

    However, he stressed that the  state of the economy had been described as the most terrible in the last 25 years.

    ‘’The significant improvement in foreign exchange liquidity is an indication of serious commitment to national economic growth. Our take, therefore, is that the country must see the recent experience as a learning curve in our national economic management,’’ he added.

  • Wapic gets shareholders’ nod to raise N10b

    Shareholders of Wapic Insurance Plc’s have given their approval for the firm to raise additional capital in the sum of N10 billion or its equivalent in any foreign currency.

    The approval was given at the company 58th Annual General Meeting (AGM) in Lagos. Members of the various shareholders associations, who spoke, said they were behind the company for the anticipated increase in capital in line with the insurance industry’s requirement.

    This came on the heels of the shareholders’ appraisal of the company’s ongoing transformation initiative, which they adjudged to be successful and encouraging.

    The company’s Chairman, Aigboje Aig-Imoukhuede, said the company intended to raise the capital by way of rights issue, public offering, placing, book building process or other methods or a combination of methods by issuance of ordinary shares, preference shares, convertible loans, stocks, medium term notes, bonds or other securities in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods and on such terms and conditions as the directors may deem fit or determine.

    He stressed that raising additional capital was a proactive step to get the company ready for a much-anticipated regulatory increase in the minimum capital of insurance companies.

    He said: “This is, particularly, instructive in view of the recent adoption of the Risk-Based Supervision model by the National Insurance Commission (NAICOM) and the directive to insurance companies to implement the Solvency II Capital Allocation model by 2018.

    ‘’When a similar regulatory capital increase was imposed on the banking industry during the consolidation era wherein only the banks that were proactive in raising the required capital emerged as winners.’’

  • ‘N167b annuity transfer order is a blessing to insurers’

    Lagos State Pension Commission (LASPEC) former Director-General,Rotimi Hussain, has urged life insurers in the country to accept the mandate given to them by the National pension Commission (PenCom) to transfer N167.84 billion annuity fund belonging to about 34,312 annuitants to Pension Fund Custodians (PFCs), describing the transfer as a blessing to the insurance industry.

    He made this call at the fourth edition of BusinessToday Insurance & Pension Awards in Lagos. It had as  theme, The current annuity fund arrangement – a threat or blessing to insurers.

    He charged the insurers to engage more with the National Pension Commission (PenCom) on development of rules and management of pension funds through their group, the Nigeria Insurers Association (NIA) and the National Insurance Commission (NAICOM).

    He urged insurers to accept that the arrangement would correct the public perception that insurers have full autonomy over annuity. He observed that the other blessing in the arrangement was that it would build public confidence and attract more people into buying annuity and growing the fund.

    He stressed that the domiciling of the annuity fund with Pension Fund Custodians would also stem the demarketing of annuity as it would provide a level-playing field for insurers and Pension Fund Administrators (PFAs), stressing that the arrangement would lead to safety of pension funds.

    He said: “The confidence to be achieved through the new arrangement, will help attract the private sector to annuity business, hence, enhancing the insurance market share.

    “Insurers need to leverage the opportunities to be created by the new arrangement by being aggressive and innovative in the pursuit of their business.”

    Group Managing Director, Royal Exchange Plc, Auwalu Muktari, said one critical success factor in the interplay between PenCom and NAICOM was the umbrella body of insurance firms in Nigeria, the NIA.

    He pointed out that it was important that the industry spoke with one voice and presents a unified front in the campaign to ensure the annuity funds remain with the life companies.

    He stressed that under the new guidelines issued by PenCom and NAICOM, the annuity funds from all insurance companies who issue annuity policies will be transferred to PFCs of their choice, adding that this amounts to over 34,312 annuitants having their funds, N167.84 billion, leaving the insurance industry and moving to the designated PFCs.

    Muktari asked how do the insurance companies would compensate for the drop in profit. “The new guidelines issued by NAICOM and PenCom make no mention of insurance agents and brokers. Who will pay the insurance broker or agent their commissions and from which premium, since the funds have been transferred to the PFCs? Let us all remember that brokers and agents play key roles in the sale and distribution of insurance products in Nigeria.

    The Commissioner for Establishment, Training and Pensions, Dr. Benson Oke, commenting on the theme, noted that Section 7 of the Lagos State Contributory Pension Scheme Law of 2007 recognises annuities as one of the investment options to which retirement savings account can be put.

    “From a social welfare governance perspective, annuities represent a responsible and effective tool that ensures the availability of funds to pensioners in a regular and prudent manner.

    “I call on all stakeholders in the insurance and pension industry to embrace and utilise all tools that promote effective management of the funds available for pension purposes,” he said.

     

  • AIICO partners AutoGenius on ‘Taxify Cover’

    AutoGenius, one of Nigeria’s first digital insurance platforms, has unveiled an insurance policy tagged ‘Taxify Cover’ designed to increase driver and rider safety as well as improve the confidence of their user base.

    Taxify Cover, launched with AIICO Insurance Plc, is a comprehensive motor insurance. It is a special motor insurance product (bundled products) that is customised to provide all the benefits of a comprehensive motor insurance with extended passengers’ liability, loss of personal effects and personal accident covers with a single premium.

    General Manager, Non-Life Business, AIICO, Adewale Kadiri, said the policy is a special Comprehensive Motor Insurance product customised to provide all the benefits of a comprehensive motor insurance with extended passengers’ liability, loss of personal effects and personal accident covers with a single premium.

    He explained that AIICO would provide the underwriting service while AutoGenius will provide the channel and technological platform for the distribution of the product.

    ‘’We are indeed optimistic that this initiative will further expand the insurance market in Nigeria and increase market penetration.

    He said: “The features of this product, among others, are the provision of compensation for accidental damage, third party bodily injury/property damage, theft and fire damage to the vehicle, death/disability/assault to the driver and rider, passengers’ liability and loss of personal effects for the driver and the rider’.’