The Nation Newspaper

Category: Insurance

  • AFN Brokers at 25 celebrates founder, Ogunbanjo at 92

    AFN Brokers at 25 celebrates founder, Ogunbanjo at 92

    It was double celebration at AFN Brokers Limited in Lagos on Thursday when the firm hit 25 years of doing robust insurance business in the country.

    The firm also celebrated its founder and business mogul Chief Chris Ogunbanjo who will be 93 this year with the institution of a yearly lecture in his honour.

    Chairman of the occasion Pastor Felix Ohiwerei described the event as auspicious, noting that it was to celebrate the greatness of Chief Ogunbanjo for his giant strides in business and numerous contributions to the growth and development of Nigeria.

    AFN Brokers Chairman Ogunbanjo said he started the firm in January 1991 with a a solid capital base, state-of -the-art equipment and qualified staff, noting that over the years, despite the turbulent business terrain, the firm has able to weather the storm and prove itself as a formidable broker in insurance.

    He noted that all those who founded the firm were alive. He thanked the stakeholders, staff and clients for their dedication, adding that without their support, the company would not have survived.

    Guest lecturer, Mr Oye Odukale debunked the view that insurance firms do not pay claims. He said: “Insurance firms are paying a lot of claims. It is a contract and you are bound to pay. We do pay even major claims – both in foreign and local currencies. But most people do not believe and those paid o not talk about it. If you do not pay claims, they are regulators are there, adding that they aggrieved client could report a defaulting firm.”

    Odukale, who is the Managing Director, LeadWay Assurance scored AFN Brokers high, describing the broker as a reliable ally in business.

    He also scored the sector high, noting that insurance is growing in Nigeria. He said insurance firms were  getting more creative and unveiling new products. “Soon, “ he declared, “ you will see the influx of new products, subject to NAICOM|s approval.“

    AFN Brokers Managing Director John Oladeji Alabi described his boss and celebrator as nice. He recalled that he joined the firm at inception after a rigorous interview an rose through the ranks over the years. He said the firm was built on trust and goodwill, assuring that the future was bright.

    At the event were captains of industry, including the directors of AFN Brokers –Dr Michael Omolayole; Ambassador Omotayo Ogunsunlire and Chief Frank Akinrele, (SAN). Others were Sir Remi Omotoso and former NTA Director-General Vincent Maduka.

  • Access Bank advocates insurance for economic growth

    Access Bank advocates insurance for economic growth

    • Insurers urged to recapitalise

    The Group Managing Director of Access Bank Plc, Mr. Herbert Wigwe, has said that Nigeria cannot grow without having a strong insurance industry as backbone. To achieve this, Access Bank, Wigwe said, is ready to partner with insurers to showcase insurance to Nigerians and espouse its relevance to national development.

    Wigwe, who spoke at an insurance forum organised by the bank for stakeholders in the insurance industry, noted that to achieve this, insurance firms would need to embrace merger and acquisitions as this will position them to recapitalise, thereby becoming stronger to take on mega businesses in the country.

    The forum with the theme: “Harnessing Economic Realities with Opportunities for Growth in the Insurance Industry” and sub theme: “Key Issues that affect the Nigerian Insurance Industry,” according to Wigwe,  was aimed at tinkering with the possibility of banks partnering with insurers to further grow the economy.

    “Insurance has a broader outlet but there are several issues hindering the growth of the industry. About 20 years ago, it used to have international players from America and Britain who had depth of skills. They set up reinsurance offshore and so the industry inherited these skills from them.

    “But the fact that people did not pay attention to insurance left a situation where those skills took the back stage. The world over, insurance companies owned banks, and not the other way round. There is need to build strong companies in Nigeria that can manage risk a lot better and provide long term money. This way sector like telecommunication, housing, etc and basically develop infrastructure.”

    Director-General, Nigeria Insurers Association (NIA), Sunday Thomas on his part said for insurers to thrive and excel in 2016, they will need to place customers at the centre of their business plans and strategies

    “They also need to review our products, policies and processes to ensure that they are relevant to customers’ needs. We must begin to build capacity in retail businesses. We must deliver on the promises through simplified claims processes that will leverage on the use of cutting edge technology.

    “For the  sustainability of the industry, the market must continue to enhance the way it is valued by the consumers and other stakeholders. The industry must step up its consumer education and public awareness of the vital importance of insurance as a social and economic transformation mechanism.

    “Insurance industry will need to keep developing innovative solutions required by consumers to manage risks in an increasingly complex and uncertain environment, price based competition cannot drive growth and sustain the market and therefore must change. There must be high level deployment of technology which  will ensure efficiency needed to ensure sustainable growth while the availability of key talents is crucial to the survival and success of the insurance industry,” he said.

  • Leadway records N137.3b assets, reports 125% increase in profit

    Leadway Assurance Company has posted a 37 per cent growth in assets to the tune of N137.3 billion in its 2015 financial year results from N100.5 billion in 2014.

    A review of its results presented at its 44th Annual General Meeting showed that the company recorded 125 per cent growth in the company’s profit after tax to N6.3 billon from N2.8 billion in 2014.

    The company also paid claims in excess of N14.3 billion, a 13 per cent increase from the N 12.7 billion record of 2015.

    It, however, wrote a 20 per cent increase in gross premium from N39 billion in the prior year to N46.6 billion.

    With good performance on its investments, Leadway reported a record 125% growth in the company’s profit after tax to N6.3bn from N2.8bn in 2014.

    Speaking during the presentation of the results, the Acting Chairman, Mr. Jeremy Rowse, stated that with various guidelines aimed at reinforcing standards and encouraging confidence in the Nigerian insurance industry, the company remains poised to take advantage of emerging growth opportunities to compete effectively within its immediate market and the larger global markets.”

    He further stated that as the Nigerian polity itself becomes restructured to tackle the myriads of socio-political, economic and infrastructural challenges facing it, the opportunity for increase in insurance penetration and contribution to GDP should increase.

  • AIICO Insurance’s profit drops by 53.4%

    AIICO Insurance Plc has recorded a profit before tax of N1.4 billion in the financial year 2015 as against the N3.1 billion it recorded in 2014, down by N1. 6 billion or by 53.4 per cent.

    This was made known in the company’s 2015 full year audited financials posted on its website. The company held its 46th Annual General Meeting last week in Lagos.

    The company also witnessed a decline in its gross premium income as it records N9.94 billion in the year under review as against the N20.55 billion it recorded in 2014.

    The report showed that the book value of equity/shareholders’ funds was N9.4 billion, down by N2 billion or by 18 per cent in 2015.

    The report read: “This is largely as a result of a change in accounting policy – reclassifying ca. N60 billion of fixed income investments from a cost-based valuation to a market-based one thereby valuing at carrying values which are marked-to-market.

    “This was to eliminate the identified accounting mismatch and align the risks and management of the assets and liabilities for annuity.

    “Total assets as at December 31, 2015 is N80 billion, up by N22 billion, which grew significantly as the company reinvested policyholder’s funds and ensured adequate matching of assets to the duration of the liabilities, in particular guaranteed annuities, with estimated life expectancy of 20 years after retirement,” it stated.

  • Custodian makes N5.7b profit

    Custodian and Allied Insurance Plc has announced a Profit Before Tax increase of 11.8 per cent from N5.1 billion in 2014 financial to N5.7 in the 2015 financial year. The company would however pay a total dividend of 20 kobo per share in respect of the results of the year under review.

    In the same vein, the strength of the group was demonstrated in the structure of its assets which stood at N57 billion with cash, cash equivalents and financial assets component making up more than N38 billion, or approximately 66 per cent of the total assets.

    The underwriting firm’s gross revenue also increased by 19 per cent to N29.8 billion. Chairman, Custodian and Allied Plc, Chief Michael Ade Oio who made this known at the company’s 21st Annual General Meeting said despite the tumultuous business environment of 2015, it did not only survive but thrived respectably.

    He said: “The level of liquidity assures of our readiness to take advantage of whatever opportunities that may arise while, at the same time, provides the safety that our clients and shareholders require in this highly volatile environment.

    “Although there was a drop in interest rates at the end of last year which negatively affected the present value of our life insurance company’s future obligations in respect of its annuity portfolio, it is hoped that recovery will ensue when interest rates rebound and the need for the provision reverses.

    “The revaluation of the portfolio required further financial provision which otherwise would have boosted our results for the year.

    Speaking on dividend, he said that following the commendable performance of the company and as it is their practice to regularly pay dividend to their shareholders, a total dividend of 20 kobo per share in respect of the results of the 2015 financial year.

    He further noted that the national economic outlook for 2016 is challenging considering the low crude oil price, dwindling external reserve and apathy of foreign direct and portfolio investors to Nigeria.

    He urged the management to continue to exhibit the professionalism and ability to wax stronger in the face of adversity.

    He urged shareholders to encourage and support them by patronising the company’s services and recommend them to their associates.

  • Ahmed retires as CIIN DG

    •Promises new syllabus

    The Chartered Insurance Institute of Nigeria (CIIN) has announced the retirement of its Director-General, Kola Ahmed effective from July 20.

    This is just as the institute disclosed that it has completed work on a new syllabus.

    The outgoing DG while speaking during the valedictory press conference held in Lagos, said the institute will soon release the new syllabus  to the public.

    Giving accounts of his stewardship, he said the institute successfully overcame the crisis of confidence that was strong and pervasive during his tenure.

    He said: “We regained the confidence and patronage of critical stakeholders for the institute’s programmes by way of endorsements and sponsorships, ensured full and successful implementation of each successive president’s programme and theme.

    “We instilled the culture of prudency, transparency and accountability in the management of the institute’s funds and resources, successful take-off of the College of Insurance and Financial Management, achieved a more purposeful, cohesive and organised insurance industry with the coming together of all arms of the industry under the aegis of the Insurance Industry Consultative Council (IICC), fostered closer ties with the industry’s regulator, the National Insurance Commission by playing a key role in the Board among others”.

  • Insurance veteran Yinka Lijadu dies at 82

    Insurance veteran Yinka Lijadu dies at 82

    The insurance industry has lost another veteran with the death of Mr Yinka Lijadu, former Managing Director of NICON Insurance and past president of the Chartered Insurance Institute of Nigeria (CIIN).

    He was also chairman of the Nigerian Insurers Association (NIA) and the Institute of Loss Adjusters Association of Nigeria (ILAN).

    A statement signed by Assistant Executive Secretary, Nigerian Council of Registered Insurance Brokers, Tope Adaramola, said the late Lijadu was sick for a while.

    According to him, NICON Insurance Corporation was the flagship of the Nigerian industry and a delightful place to work while Lijadu held sway.

    He said: “Under him, NICON built several octopus of business institutions such as the NICON Noga Hilton Hotel, Abuja which has now transfigured to Transcorp Hilton Hotel, as well as the defunct Nigerian Acceptances Limited (NAL) Merchant Bank.

    “On behalf of the Federal Government, Lijadu also pioneered National Properties Limited and the Nigerian Agricultural Insurance Agency, among others. Lijadu demonstrated through his leadership of NICON the belief that the insurance industry could really be the desired fountain for the conception and establishment of other business institutions as obtainable in other advanced economies.

    “It was reliably gathered that at retirement, he never had a house or any obvious material possession that befitted the life of a man who bestrode the nation’s then nascent economy, especially in a society like ours where warped value system has made such life style abnormal.”

    Born on April 2, 1934 at Abeokuta, Ogun State, Lijadu had his primary education at Christ Cathedral and Saints Peters Schools and his secondary education at CMS Grammar School and Kings College all in Lagos. He later won a scholarship in 1960 to study Insurance at the Holborn College of Law, Languages and Commerce, and bagged the Associateship of the Chartered Insurance Institute, London  with specialisation in fire insurance in 1963.

  • Contributory pension records 162,343 retirees

    Over 162, 343 had retired under the Contributory Pension Scheme (CPS) as at March 2016 and are currently receiving pensions as and when due, the Director-General, National Pension Commission (PenCom), Mrs. Chinelo Anohu-Amazu, has said.

    The PenCom boss, who was represented by PenCom’s Head, Research and Strategy Management, Dr. Farouk Umar, made this known at a round table on retirement and pension to commemorate the workers day 2016, organised by Daily Trust Newspaper in Abuja.

    Reeling out the scorecard of the scheme, she stated that the total pension fund assets had grown to N5.39 trillion as at March,  with the monthly average contributions at about N25 billion.

    According to her, the number of registered contributors stood at 7.01 million as at March, representing about 7.45 per cent of total labour force in Nigeria and 3.95 per cent of total population.

    She added that about 200,000 private sector employers of labour are implementing the CPS.

    She said: “The Commission initially licensed 26 Pension Fund Administrators (PFAs), seven Closed Pension Fund Administrators (CPFAs) and five Pension Fund Custodians (PFCs) but they have presently reduced to 21 PFAs, seven CPFAs and four PFCs due to mergers and acquisitions.

    “Presently, 26 states of the Federation had adopted the scheme and are at different stages of implementation while the remaining 10 states are at bill stage.

    “The assets were equivalent to about 7.72 per cent of the Nigerian rebased gross domestic product (GDP), and about 60 per cent of the total pension fund assets belong to the private sector.”

    On micro pension, she said the plan was introduced to extend coverage to the persons working in the informal sector and the self-employed.

    “The Micro Pension Department has been established to drive implementation of the plan. multi-channel platform will be used in providing customer services to those who will be covered under the plan and discussions are ongoing with relevant service providers and regulators to provide the required technology.

    “Sensitisation is being undertaken through the print and the electronic media including the various social media platforms while we have started discussions with the Central Bank of Nigeria (CBN) and other relevant government agencies on extending coverage to the Small and Medium Scale Enterprises,’’she said.

     

     

  • Africa, other continents for AIO confab

    In less than seven days, insurance operators around the world, especially from the African Continent, will gather in Morocco for the 43rd African Insurance Organisation (AIO) conference & General Assembly to discuss current and emerging challenges in the insurance industry.

    The event will hold between May 8 and 11 in Marrakech, Morocco and the theme of this year’s conference is “African insurance amid current and emerging challenges.”

    A.M. Best Managing Director, Market Development; Nick Charteris-Black, in a tweet said a delegation from the international rating agency will attend the 43rd African Insurance Organisation (AIO) Conference & General Assembly.

    A.M. Best delegation includes Associate Director, Market Development & Communications, Dr. Edem Kuenyehia; and Associate Director, Analytics, Deniese Imoukhuede.

    The group provides financial strength, and issues ratings for insurers worldwide including ratings on a number of national and regional (re)insurers in the African insurance market.

    A.M. Best is the world’s oldest and most authoritative insurance rating and information source.

  • IGI chief Fashola is WAICA president

    IGI chief Fashola is WAICA president

    Managing Director, Industrial and General Insurance Plc (IGI),Rotimi Fashola has been elected the president of the umbrella body of insurance practitioners in the sub-region, the West African Insurance Companies Association (WAICA),

    Fashola, who succeeds Ivan Ayereyireh, a Ghanaian, was elected at the association’s 38th annual general meeting (AGM) and education conference  in Lagos. It  attracted delegates from the various member-countries in the sub-region.

    In his acceptance speech, Fashola promised to pursue WAICA’s primary responsibility of protecting the interest of its members and grow the business of insurance in the sub-region.

    He said: “The executive under my leadership, with the support and cooperation of all members, shall embark on an intensive membership drive as part of effort to engender the relevance of our industry to the growth of our various nations,” he said.

    “Efforts will be geared towards establishing local associations in member-countries, encouraging more French-speaking countries and other industry players, including reinsurance companies, loss adjusters to join WAICA, and initiating the process of erecting an office complex to be called ‘WAICA House.’

    The dignitaries that attended the conference include representative of the Minister of Finance, Mrs. Kemi Adeosun, founding father of WAICA, Prof. J. O. Irukwu, the Commissioner for Insurance, Alhaji Mohammed Kari, with his counterparts from other member countries, among others.