The Nation Newspaper

Category: Insurance

  • LASACO pays Lagos 85 deceased dependants N171m benefits

    Eighty-five dependants of deceased Lagos State Local Government and Primary School Teachers from the Lagos State Government State Universal Basic Education Board (SUBEB) staff have received N171 million insurance death benefits from LASACO Assurance Plc.

    Managing Director, LASACO Assurance, Segun Balogun, while presenting the cash to the beneficiaries at the Ministry of Local Government and Community Affairs, Alausa, Ikeja, Lagos, praised the government for instituting theGroup Life Insurance Scheme (GLIP) for its workers in 2009.

    He said 174 relations of the deceased staff benefited from the scheme between 2013 and last year.

    He said out of the 36 states in the country, only a few have implemented the scheme.

    He urged the beneficiaries to use the money judiciously, especially for the education of deceased children.

    The Permanent Secretary (PM), Ministry of Local Government & Community Affairs, Fola Padonu, added that the presentation of death benefits to 85 beneficiaries that consist of 50 local government and 35 SUBEB deceased staff is the third. The first and second presentations were in  2013 and last year to 174 beneficiaries.

  • African Alliance appoints Funmilayo Omo MD/CEO

    African Alliance Insurance Plc has appointed Mrs

    Funmilayo Omo as the Managing Director/Chief Executive Officer of the underwriting firm.

    In a statement, the firm’s Corporate Communication Manager, Stella Osanebi, said Omo’s appointment okayed by the Board of Directors, had been confirmed by the regulatory body, the National Insurance Commission (NAICOM).

    According to the statement, Omo was appointed Acting Managing Director of the 56-year-old life specialist firm last March 3, following the retirement of the erstwhile Managing Director, Alohons Okpo.

    Omo received B.Sc (Insurance) from the University of Lagos (UNILAG) in  1990. She trained as a Life Insurance Underwriter at Munich Re in South Africa and has over 26 years’experience in Life and Pension Business.

    In 1991, she joined African Alliance Insurance Plc (then a Limited Liability Company), as an Assistant Superintendent and later rose to the position of Controller (Technical Operations), Individual Business in 2004.

    In 2006, she became an Assistant General Manager from where she advanced to become the Executive Director and Head of Life operations of the company.

  • Govt, firms urged to adopt risk management

    The Managing Director of Intergrated Cash Management Services Limited, Leon Jacobs, has called on government and companies to embrace a robust   risk management strategy.

    Jacobs, who stated this in a paper he  delivered at this year’s Risk Management Conference and Awards  in Lagos, titled, ‘Risk Management and Changing Global Paradigms,’ said this was imperative given the challenging environment we now live in.

    “We are living in a challenging new reality for governments and companies of all sizes around the world. There are many emerging influences that are creating opportunity, but at the same time, creating risks that need to be managed. As the risk landscape for commerce evolves, businesses can no longer rely solely on traditional risk mitigation or risk transfer tactics. They must take a cross-functional approach to risk management and explore different ways to cope with these new complexities.”

    He  listed such risks to include cybercrime, business interuption, damage to reputation, regulatory and legislative changes, economic slowdown, political risks and uncertainties.

    Jacobs said we are living in a challenging new reality for governments and companies of all sizes around the world, stating that there are many emerging influences that are creating opportunities, which at the same time, create risks that need to be managed.

    Speaking on how government and companies can prepare themselves for the risk and opportunities inherent in these changes, he said continuous professional education in risk management should be made readily available for risk managers in Nigeria.

    He said: “We are a nation that is constantly exposed to a myriad of risks, which are becoming very sophisticated by the day. This will equally require sophisticated risk mitigation efforts. Given these complexities within a nation already plagued by lack of talent, the importance of a robust risk management discipline to enable sustainable business growth has never been more critical.

    People cannot manage what they do not know. For those who know, continuous professional education in risk management should be made readily available for risk managers in Nigeria.

    “The Center for Risk Management Development (CRMD), which is the educational arm of RIMSON, should pioneer the development of a corporate risk modeling tool to help corporates and even governments better understand the potential impact of extreme events such  as natural catastrophes, disease outbreaks and political unrest.

    “It is hoped that CRMD will take on this challenge and produce the first indigenous risk modeling solution for Nigeria, which should make it possible to identify which extreme and catastrophic events are most relevant for a given organisation in terms of impact and likelihood, which would assist management in risk mitigation decisions and provide a more quantitative approach to risk disclosure.”

  • CHI shareholders get N120m dividend

    Consolidated Hallmark Insurance Plc is paying N120 million as dividend, having received the nod of the shareholders at its 22nd Annual General Meeting (AGM) at the weekend in Lagos.

    The company generated a gross premium income of N5.83 billion against the N6.04 billion generated in 2015. The company’s net premium income rose to N3.51 billion from N3.19 billion during the corresponding period.

    The firm’s profit for the year was N195 million and profit before tax, N368.13 million.

    Claims and payments, however, rose significantly from N1.34 billion in 2015 to N1.73 billion, an increase of 29 per cent and the total assets moved from N7.02 billion in 2015 to N7.44 billion.

    Its Chairman, Obinna Ekezie, who revealed at the meeting that the dividend translates into two kobo per share, stressed that the gesture was to further demonstrate the company’s commitment  to reward its shareholders in spite of the tough business climate.

    He said the dividend is payable to members, whose names appear in the register by close of business on the date earlier publicised.

    The firm’s Managing Director,  Eddie Efekoha on his part, said the board and management will continue to work hard to provide good dividend, adding that the company is undergoing digital transformation exercise to enable it position itself strategically and align with its strategic objectives.

    He stressed that the efforts will help the company deliver exceptional returns to shareholders, be profitable and increase its market share, adding that it is part of a comprehensive five-year strategic plan being implemented.

  • Allianz records 122b euro revenue in 2016

    Allianz Global Corporate & Specialty, a global insurance company, has achieved a revenue growth of 122 billion euro in 2016, Chief Executive Officer, Thusang Mahlangu has said.

    He disclosed this known at a cocktail at the National Fire Prevention Awareness and Advocacy (NFPAWA) Conference sponsored by the firm in Lagos.

    According to Mahlangu, who said Allianz Global Corporate&  Specialty has been in Africa for over 100 years, the company achieved an operating profit of €10.8 billion in the same year. He further said the company has over 140,000 employees worldwide.

    “Allianz Group managed an investment portfolio of 653 billion euros. Additionally, our asset managers, AllianzGI and PIMCO, managed over 1.3 trillion euros of third-party assets. We are committed to the continent of Africa, and we will continue to look for eminent opportunities of growth in Africa. We have invested in  60 countries and recently bought Zuric in Morocco and now have a fully-fledged office in Morocco,” he said.

  • FBNInsurance assures support to policy holders

    FBNInsurance Limited, has reassured subscribers to its  Guaranteed Lifetime Retirement Income Plan (GLRIP), it remain true to them, especially in retirement.

    In a statement by its Head, Annuity/Actuarial Services, Adeola Adekunle, the firm expressed delight that the customers found the company a trusted ally in their annuity.

    He said: “Scores of annuitants, who subscribe to FBNInsurance’s Guaranteed Lifetime Retirement Income Plan, have expressed satisfaction with the services coming from the life insurance company.

    “In this era of harsh economic realities that have drastically reduced the earnings of the average Nigerian, finding a company that makes one’s investment worthwhile is enough cheer. For the retiree whose steady salary is everything, FBNInsurance is a fresh breath of air,”he said.

    An annuitant who did not want his name in print who retired from the Nigerian Customs Services, said what he loved about FBNInsurance, was the  good service rendered by its members of staff.

    “I introduced some of my friends to FBNInsurance annuity and we are all enjoying the service. As a pensioner, FBNInsurance gives me peace of mind with prompt annuity payment and they are always available to attend to us. I will continue to introduce more retirees,”he said.

    Another retiree said: “As a retiree, I am saying this with so much joy in my heart that their member of staff gave me V.I.P treatment. I will choose your company over any other company  any time.”

    Incorporated seven years ago, FBNInsurance Limited boasts a thriving annuity sales team operating out of the company’s Head Office in Marina.

  • ‘Poor perception, enforcement bane of insurance’

    Nigeria’s low insurance penetration rate of 0.4 per cent is due to poor public perception, monitoring and enforcement of mandatory policies, PriceWaterHouseCoopers (PwC), has said.
    PwC also said there is absence of innovative products and distribution channels, coupled with complex, lengthy policy and claims processes in the industry.
    Chief Economist and Strategist, PwC, Dr. Andrew Nevin, made this known at a Public Lecture organised by Consolidated Hallmark Insurance (CHI) at the Muson Centre, Lagos, to commemorate the 10th Anniversary of the company.
    Nevin stated that Nigeria’s insurance penetration rate of 0.4 per cent remained low compared to other countries with similar demographics.
    For instance, South Africa’s insurance penetration stood at 14.4 per cent, India’s is 3.3 per cent, Brazil 5.1 per cent, Namibia 7.4 per cent, Russia 3.1 per cent, Indonesia 1.4 per cent, Kenya 2.9 per cent.
    Nevin warned that except insurers begin to meet changing customer needs with new offerings, enhance interactions and build trusted relationship and form strategic alliances, the penetration level may drop from the 0.4 per cent where it stands currently.
    He outlined the strategies to increase insurance penetration rate in Nigeria to include customising insurance solutions, removing large, entrenched bureaucracies and offering seamless customer experience.
    Others are use of new technologies and services to increase access to information that can empower consumer decisions; partnerships between intermediaries, service providers and reinsurers. He said these are good ways to augment existing capabilities and establish symbiotic relationships.
    Earlier in his opening remarks, Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Mohammed Kari, congratulated the company’s management, board and other stakeholders for the 10-year anniversary celebration.
    He said: “What we are celebrating today is that of many businesses combining to become one, in this case Consolidated, Hallmark and General Insurance.
    “It is general knowledge that many businesses that started up new or through combinations have life span of three to five years.
    ‘’Consolidated Hallmark Insurance has not only passed through the injury periods, but is waxing stronger and better 10 years after. The board and management of the company need to be commended for the success and progress so far.”
    Kari, however, reminded the company that as it celebrates its success, it should be aware that getting bigger in size and performance comes with higher expectations, adherence to corporate governance, and sustainability of growth among others.
    The Commissioner therefore, advised the board to put in place strong corporate governance structure to guide the company’s future activities.
    He said this was imperative in view of the transition from compliance based to principle based (risk based) capital and supervision in the insurance industry.
    Kari regretted that many hitherto regarded major players in the industry had many corporate governance issues, leading to poor performance and regulatory concerns, which posed systematic risk to stakeholders.
    Chairman, Custodian and Allied Insurance, (CHI), Mr. Obinna Ekezie, said a lecture of this nature was absolutely necessary, especially against the backdrop of various challenges that have bedevilled the development of the local economy. He said the sector has a key role to play in offering practical solutions to the challenges.
    His words: “Insurance is a tool, which absorbs risks from individuals and corporates while at the same time helping to underpin stability and stimulate economic growth. Insurance is, therefore, more relevant today than ever before.”

  • Custodian pays 25k dividend

    Custodian pays 25k dividend

    Custodian and Allied Insurance Plc has sustained payment of dividend to shareholders by paying a total dividend of 25 kobo per share in respect of the results of the 2016 financial year.
    The underwriting firm also posted profit after tax of N5.33 billion in the year under review as against the NN4.2 billion recorded in 2015 year end.
    Its gross premium income grew to N28.3 billion from N23.6 billion while its total assets of N68 billion from the N57 billion it recorded the previous year.
    Presenting the annual accounts and reports for the financial year ended December 31, 2016 to shareholders, Chairperson Dr. (Mrs.} Omobola Johnson said the challenging environment in which the company in 2016 tested the resilience of the management and its ability to operate professionally and profitably in difficult times.
    She said: “All significant performance metrics for the year under review were better than prior year’s as year over year growths of 30 per cent, 29 per cent, and 33 per cent were recorded in gross revenue, profit before tax and total comprehensive income respectively.
    “In absolute terms, the total comprehensive income attributable to shareholders was N5.2 billion, that is, N1.3 billion better than prior year while net shareholders’ value, after adjusting for dividends paid, increased by N3. 9 billion.’’

    “Management continues to deploy the group’s assets professionally, prudently and profitably within the dictates of the evolving local and world economies to ensure the safety of our insurance / investment clients’ funds and not to erode shareholders’ value. The group’s cash and financial assets holding is a testament to financial stability to meet obligations as at when due and nimbleness to seize market opportunities as they arise.”
    Speaking on future outlook of the company, the Chairperson said she believes that the worst days are over for the national economy and she is further persuaded that the country will be out of recession by the second quarter of 201 7.
    “With judicious use of our national resources and ‘sound economic policies in a safe environment, the economy should be on an upward trajectory and GDP growth restored.
    “I am also convinced of our management’s ability to not only sustain their enviable performance but to further improve upon it and maximize returns to all stakeholders in the interesting times that I foresee are upon us. I re-echo the call on all of us to support them by patronizing Custodian group’s services and recommending them to our associates”, she added.

  • Lagos commissioner bags ‘Labour Friendly’ award

    The Lagos State branch of the Association of Senior Civil Servants of Nigeria has presented an award to the Commissioner for Establishments, Training and Pension, Dr. Akintola Benson.
    The branch Chairman, Mr Olaide Bamidele, presented the award titled: “Labour Friendly Award in Good Service and Leadership” to the commissioner at a special award dinner organised by the Association on May Day in Lagos.
    Bamidele stated that the award was, among others, for relative peace and industrial harmony in the Lagos State Civil Service under the commissioner’s watch.
    While expressing gratitude to the association, Dr. Benson said promised will redouble his efforts in doing those things that qualified him for the award.
    He said the administration would continue its fidelity to its obligations on regular payments of salaries, allowances and pension obligations.
    The event, according to him, was on a day that held a special significance for organised labour and for employer-employee relationships.
    Benson said: “Earlier today, Lagos State Governor Akinwunmi Ambode restated his dedication and commitment to the training, welfare and partnership with officers of the public service.
    “It is on this note that I call for greater and deeper cooperation between the association and the state government. More than ever before, now is the time for you all to show even greater dedication to your all-important duties as senior civil servants.”
    The commissioner said that the state civil service is now needed to complement the administration’s efforts as it seeks to fundamentally transform infrastructure and re-position the state as a competitive global city.

  • ‘Why West African insurers may not achieve economic integration ’

    ‘Why West African insurers may not achieve economic integration ’

    THE insurance industry in the Economic Community of West African States (ECOWAS) sub-region may not achieve economic and political integration by 2020, the Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari, has said.
    He made this known at the Annual Conference of the West African Insurance Companies Association (WAICA) in Banjul, Gambia.
    Delivering a paper titled: “Achieving regional integration in the insurance industry in West Africa through uniform regional compliance”, he said this despite that Africa’s strategy for economic transformation for regional integration had been ongoing since the 1960s.
    He stated that the only achievement under the economic plan that comes near to the original ideals of the ECOWAS founding fathers would be the ECOWAS Brown Card.
    He said elimination of barriers to cross-border investments and differential treatment of foreign investors within the region which extends to harmonisation of legislations, policies and institutions would be required for the region to achieve regional integration.
    The Commissioner stressed that a major lesson from the global financial crisis of 2007 and 2008 and the challenge it posed on territorial regulatory authorities of the financial architecture brought the need for deeper connectivity and collaboration among financial systems and markets across borders.
    According to him, supervisors need to put in place adequate coordination arrangement with other supervisors on cross-border issues to facilitate the comprehensive oversight of entities within their regulatory purview.
    Thus, he said, a symbiotic collaborative integration was achievable through an efficient platform for information sharing, comparison of supervisory methodologies and coordinated decision and action where appropriate.
    He said: “The issue of regional integration has remained in the front burner of virtually all WAICA conferences. While I commend the persistence of WAICA on this subject, we need to accept that we cannot achieve much by ourselves as an industry. We need to engage the ECOWAS political structure to recognise the need to rethink beyond the historical colonial partitions and integrate the CIMAs and WAICAs of the sub-region to achieve real integration.
    “There are questions as to whether we can justify our dream of the integration of the “part” when the “whole” is fragmented? The whole I mean here is our sub region. While it is not a sin to dream, I am a little sceptical in the rude awaken that awaits us when we wake up. This is not to say that we should not desire integration of our countries and services. The reasons are both political and economic.”
    Chairman, Nigeria Insurers Association (NIA) and Managing Director, Consolidated Hallmark Insurance PLC Eddie Efekoha said harmonisation of regulatory standards in the sub region, which are desirable and achievable, would require patience, determination and sustained effort by all.
    In his presentation titled, “Uniform regional compliance in the insurance industry to what end? The pros and cons of current insurance regulatory framework in West Africa – Perspective of the direct underwriters, he stated that before the region thought of uniform regulatory frame work and compliance for the West African sub region, there was the need to consider strengthening the individual countries’regulatory structure through total autonomy.
    He said there was also the need to ensure financial independence of the regulatory system in each of the countries within the subregion while each countries’regulatory institution should build the needed human capacity for effective market surveillance.
    “There must be deliberate efforts to foster relationship within the subregion financial sector, trade associations must be strengthened to play a collaborative role in the harmonisation process, an in-depth understanding of the unique business process of each member states; technical capacity requirement among member-states must be standardised; a phased approach to harmonisation, desirable; build on the ECOWAS Brown Card System; borrow a leave from the francophone countries, already have an harmonised regulatory framework; and build African market for Africans.’’