After three years of intervention in Goldlink Insurance Plc, the Interim Management Board has recovered 1.2 billion bubble shares perpetrated by its former directors.
The interim management determined that there were abnormalities in the 2011 financial statement and attempts made to conceal the company’s financial position.
NAICOM on November 1, 2012 took over Goldlink when it became apparent that there were anomalies and misstatements in the audited financial statements of the company for the year ended December 31, 2011.
The commission sacked the board, which had Femi Okuniyi as its Managing Director and reconstituted a seven-man interim board headed by the Chairman, James Ayo, to oversee the affairs of the company.
The Commission also engaged KPMG to audit the company.
Unveiling the report of the forensic probe at the company’s Annual General Meeting (AGM), Ayo said the audit confirmed the observation of NAICOM that various abnormalities identified in the 2011 financial statement were attempts to conceal the company’s true financial position.
He said several irregularities were perpetuated by the former executives and staff of the company, adding that there was a breakdown of corporate governance.
He explained that the interim management board instituted a share capital audit, which revealed that about 2.5 billion shares were inappropriately issued to selected shareholders without considerations into the company.
He said “To support the creation of these bubble shares, the Head Office Building and other assets were revalued and inflated by about N1.5 billion. The revaluation surplus was used in part to create these shares against sound accounting standards and principles.
“Currently, the interim management board has recovered 1.2 billion shares through voluntary surrender and about 134 million shares by way of forfeiture.
“The interim board also found out that about 1.2 billion share unit have been disposed of by some of the beneficiaries, and that the interim management board has commenced the process of recovering the disposed shares and associated dividends of about N125 million,” he said.
Meanwhile, shareholders gave the Commission 90 days to reconstitute the board to reflect the shareholders of the company.
The Nigerian Council of Registered Insurance Brokers (NCRIB) has appealed to the National Insurance Commission (NAICOM) to revisit the case of some of the 108 delisted broking firms as some of them made errors that are deliberate.
Executive Secretary, Nigerian Council of Registered Insurance Brokers (NCRIB), Fatai Adegbenro, who made the appeal in an interview with The Nation, said the Council also approach the National Assembly to make presentations on their case.
According to him, about 1000 employees have lost their jobs as a result, thereby causing untold hardship to them and their family members.
He said the delisting of the 108 broking firms means pushing all those working with the firms into the employment market which will further create a terrible social problem for the industry and the country at large.
He stressed that for every employer, there are about eight employees whose children’s education would be distorted.
He said Glanvilles has about 80 employees.
He believes that the problem of unemployment should not be compounded but be solved.
Adegbenro stated that while they do not encourage their members to flout the laws, the regulator should bear in mind that the problem is not an industry problem but that of a country that has in the past jettisoned orderliness.
He said the Council met with the Commission three weeks ago after they were intimated of the decision to delist the brokers.
He said they sought to see the list before it was released to cross check the names they had with their own record.
He noted that the Commission went ahead to delist the brokers without informing them in the know.
He said they swung into action by checking their records and found out that of the 230 broking firms, only 108 had NCRIB certificates.
He said: “We looked at it as against what we were made to believe that the licenses affected were not renewed for two or more years. We also observed that about 30 members had issues this year like submitting late beyond the time stipulated by the regulator.
“If you look at the antecedent of where the entire country is coming from, you will find out that it is that of a country that has jettisoned orderliness. But people are beginning to shift ground because a new sheriff is in town. Some of the brokers made errors and omission but they are genuine. They have been adding value to the industry in the past. At the same time, there are some that have not renewed their licenses for about five to 10 years and these group can be seen as not being serious with their business.
“We don’t have any problem with the Commission delisting these set of brokers but our concern and worries is on those who had genuine cases for the errors or omissions that they may have made. They had issues and were unable to renew their license for just about a year or two. We are asking the Commission not to cut off a head from the body because it made some mistakes. There are other ways of sanctioning them and we are engaging the Commission to take a second look at the matter.”
The commission had on December 8, delisted 108 insurance brokers for failing to renew their licenses.
Names of Insurance Broking Companies delisted by the Commission in line with the provisions of insurance laws are Glanvill Ethoven & Co Insurance Brokers Nigeria Ltd, Glanvill Ethoven Life And Pension Consultants Insurance Brokers Ltd, Glanvill Ethoven Reinsurance Brokers Ltd, First Mutual Insurance Brokers, Accredited Insurance Brokers, Aci Insurance Brokers, Alpha Insurance Brokers, Apl Insurance Brokers, Atlantic Insurance Brokers Ltd, Ariel Insurance Brokers Ltd, Arimok Insurance Brokers, Aso Solid Insurance Brokers, Ayeson International Insurance Brokers Ltd And Backlay Insurance Brokers, Finbank Insurance Brokers Ltd.
There will be no future for the insurance industry if unprofessional and unethical practices continue to be the bedrock for insurance companies, brokers, agents, loss adjusters and the public, Managing Director, Consolidated Hallmark Insurance Plc, Eddie Efekoha has said.
He spoke at the graduation and awards of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.
He said it is the responsibility of practitioners to determine the future of the industry through professional and ethical practices.
He noted that the causes of unethical conduct in the insurance industry is greed and pursuit of personal gains, lack of transparency, peer pressure and societal influence, competition and inadequate monitoring and enforcement.
He listed some of the unethical practices to include unhealthy competition, rebates and illegal payments to intermediaries, refusal to pay claims, claims purchasing, poor representation of client, collusion with clients to exaggerate claim amount or claim for uninsured losses and leasing AIIN Certificate for fee.
Some effects of non-adherence to ethical standards, he said, are the fact that it hinders growth, creates bad public perception, career death; lead organisations to corporate graveyard and allows corruption of the entire system.
On the way forward, he said practitioners should imbibe the spirit of professionalism in the discharge of their duty to their employers.
He said: “Each and every one of us must constantly ask ourselves everyday if we have acted in our line of duty as professionals.
“Professionals must maintain the industry code of ethics by obeying all the laws, diligently performing assigned duties, promoting professional standards, establishing and maintaining worthy associations, upholding a well-defined communicated corporate culture, continually seeking knowledge, skill and competence.
Meanwhile, the institute inducted 159 graduands as Associates and admitted six Associates to the Society of Fellows.
The President, Lady Isioma Chukwuma, urged the associates and fellows to uphold the ethics of the profession, stressing that all certificates issued by the institute remain the institute’s property and could be withdrawn from the holders if the institute has good reasons to do so.
She noted that the institute reserves the right to withdraw its certificate from any holder if it discovers any breach of the examination process, adding that other reasons for such withdrawal of certificates could emanate from unethical conduct or any act that could bring the Institute and indeed the profession to disrepute.
She said professional best practices were being pursued by the institute to reposition uphold the profession.
The interest rate hike announced today by the Federal Reserve is a major milestone for retirees, who have been caught between a rock and hard place ever since the Great Recession, with zero interest rates and higher-than-average inflation.
The Fed’s quarter-point hike in the benchmark federal funds rate is the first in nearly a decade, and it could mark the start of something good for retirees, who rely on bonds, certificates of deposit and money market funds to generate income.
Rates on these instruments have been near zero – and often negative after inflation – throughout the post-recession era.
Low interest rates have gone hand-in-hand with low inflation. However, inflation is higher for seniors, due mainly to the disproportionate impact of ballooning healthcare costs.
From 1985 to 2014, an experimental inflation measure of senior inflation (known as the CPI-E) ran 5.1 per cent higher than what is reflected in the broad Consumer Price Index, according to research by J.P. Morgan Asset Management.
Today’s move will not ease the pain. The higher short-term rate already has been priced into the bond market and is not expected to boost interest rates on products like money market funds or certificates of deposit.
And the Fed signaled that it will be cautious about boosting rates further. If rates were, in fact, to rise in the neighborhood of 100 basis points over the next year, and if longer-term bond rates moved in lock step, seniors would get some relief.
“They’ve been earning zero on their cash, so seeing short-term rates move off of zero certainly is good news,” said Scott Thoma, investment strategist at Edward D. Jones & Co.
“No one is saying ‘all clear’ on a secular long-term rise – and rates can stay lower longer than most people think,” adds Tom Anderson, a wealth manager at Morgan Stanley and the author of “The Value of Debt in Retirement.”
There would be no future for the insurance industry if unprofessional and unethical practices continue to be the bedrock for insurance companies, brokers, agents, loss adjusters and the insuring public, Managing Director, Consolidated Hallmark Insurance Plc, Eddie Efekoha has said.
He made this statement while speaking at the 2015 Graduation of the Chartered Insurance Institute of Nigeria (CIIN) and awards ceremony held in Lagos.
He said it is the collective responsibility of insurance practitioners today to determine the future of the industry through professional and ethical practices.
He noted that the general causes of unethical conduct in the insurance industry is greed and pursuit of personal gains, lack of transparency, peer pressure and societal influence, competition and inadequate monitoring and enforcement.
Rate cutting.
He listed some of the unethical practices in the industry to include unhealthy competition, rebates and illegal payments to intermediaries, refusal to pay claims, claims purchasing, poor representation of client, collusion with clients to exaggerate claim amount or claim for uninsured losses and leasing AIIN Certificate for fee.
Some effects of non-adherence to ethical standards, he said, are the fact that it hinders growth, creates bad public perception, career death; lead organisations to corporate graveyard and allows corruption of the entire system.
Speaking on the way forward, he said practitioners need to imbibe the spirit of professionalism in the discharge of their duty to their employers.
He said: “Each and every one of us must constantly ask ourselves everyday if we have acted in our line of duty as professionals.
“Professionals must maintain the industry code of ethics by obeying all the laws, diligently performing assigned duties, promoting professional standards, establishing and maintaining worthy associations, upholding a well-defined communicated corporate culture, continually seeking knowledge, skill and competence.
Meanwhile, the institute inducted 159 graduands as Associates and admitted six Associates to the Society of Fellows.
The President, Lady Isioma Chukwuma at the event urged the associates and fellows to uphold the tenets of the profession, stressing that all certificates issued by the Institute remain the Institute’s property and could be withdrawn from the holders if the Institute has good reasons to do so.
She noted that the Institute reserves the right to withdraw its certificate from any holder if it discovers any breach of the examination process, adding that other reasons for such withdrawal of certificates could emanate from unethical conduct or any act(s) that could bring the Institute and indeed the profession to disrepute.
She said the ideal of an ethical and professional best practice is being pursued by the Institute to reposition and reinforce the integrity of the profession.
Following the revocation of 108 insurance brokers, about 1000 employees have lost their jobs, causing untold harship to them and their family members.
This is coming at a time Nigeria’s unemployment rate is about 35 per cent and harsh economic outlook persists.
The National Injsurance Commission (NAICOM) had on December 8, delisted 108 insurance brokers for failing to renew their licenses.
In a publication by NAICOM to Ministries, Departments and Agencies (MDAs), the Commission stated that in line with the provisions of extant insurance laws, the operating licences of the under-listed 108 insurance brokers have lapsed and thus now invalid for the purpose of transacting insurance business in Nigeria.
The publication said: “Members of the public are therefore advised to refrain from patronizing the brokers for purposes of their insurance consumption henceforth.
“Names of insurance broking companies delisted by the Commission in line with the provisions of extant insurance laws are Glanvill Ethoven & Co Insurance Brokers Nigeria Ltd, Glanvill Ethoven Life And Pension Consultants Insurance Brokers Ltd, Glanvill Ethoven Reinsurance Brokers Ltd, First Mutual Insurance Brokers, Accredited Insurance Brokers, Aci Insurance Brokers, Alpha Insurance Brokers, Apl Insurance Brokers, Atlantic Insurance Brokers Ltd, Ariel Insurance Brokers Ltd, Arimok Insurance Brokers, Aso Solid Insurance Brokers, Ayeson International Insurance Brokers Ltd And Backlay Insurance Brokers, Finbank Insurance Brokers Ltd.
“Others are First Cover Insurance Brokers Ltd, First Cover Masters Insurance Brokers Ltd, First Eco (Wa) Insurance Brokers Ltd, Flagship Insurance Brokers Ltd, Gaywood Insurance Brokers Ltd, Global Heritage Insurance Brokers, Goodgate Insurance Brokers, Grace Church Insurance Brokers, Greenfield Insurance Brokers, High Gate Insurance Brokers Ltd, Ifa Insurance Brokers, Indent Insurance Brokers, Intergrity Trust Insurance Brokers, International Chartered Insurance Brokers Ltd, International Insurance Brokers Ltd,Intra Niger Insurance Brokers Ltd,Irving Insurance Brokers,Jayford Insurance Brokers,Kal & Kay Insurance Brokers, Kardinal Insurance Brokers Ltd among others
•NCRIB President, Kayode Okuneren
Executive Secretary, Nigerian Council of Registered Insurance Brokers (NCRIB), Fatai Adegbenro in an interview with The Nation on the development described the incident as sad.
He said the Council was at the National Assembly on Tuesday to make presentation on the issue.
He said delisting 108 broking firms’ means pushing all the people working with the firms into the employment market and this will further create a terrible social effect on the insurance industry and the country at large.
He stressed that for every employer, there are five to eight employees whose children’s education will be distorted as a result.
He said Glanvilles, for instance, has about 80 employees.
He believes that the problem of unemployment should not be compounded but be solved.
Adegbenro stated that while they do not encourage their members to flout the laws, the regulator should bear in mind that the problem is not an industry problem but that of a country that has in the past jettisoned orderliness.
He said the Council had met with the Commission three weeks ago after they were intimated of the decision to delist the brokers.
He said they had sought to see the list before it was released in other to cross check the names they had with their own record.
He noted that unfortunately, the Commission went ahead to delist the brokers without putting them in the know.
He said they immediately swung into action by checking their record and found out that about 230 broking firms out of the 108 had current NCRIB certificate.
He said: “We looked at it as against what we were made to believe that the licenses affected were not renewed for two or more years. We also observed that about 30 members had issues this year like submitting late beyond the time stipulated by the regulator.
“If you look at the antecedent of where the entire country is coming from, you will find out that it is that of a country that has jettisoned orderliness. But people are beginning to shift ground because a new sheriff is in town. Some of the brokers made errors and omission but they are genuine. They have been adding value to the industry in the past. At the same time there are some that have not renewed their licenses for about five to 10 years and these group can be seen as not being serious with their business.
“We don’t have any problem with the Commission delisting these set of brokers but our concern and worries is on those who had genuine cases for the errors or omissions that they may have made. They had issues and were unable to renew their license for just about a year or two. We are asking the Commission not to cut off a head from the body because it made some mistakes. There are other ways of sanctioning them and we are engaging the Commission to take a second look at the matter.”
He added that a Government that is serious about shoring the country’s gross domestic product will not cut off activities or add to the already high unemployment rate.
“The unemployed people may create problem for the few employed people. There is already problem in the north east and south east and you don’t want to craete another one. The commission should bear in mind that laws are made for human beings and not human beings for laws and if there are no human beings, there will be nobody to apply the laws on,” he noted.
The National Insurance Commission (NAICOM) is working to make critical changes that will develop the industry, Commissioner for Insurance, Mohammed Kari has said.
Kari, who spoke through the Deputy Director, Faruna Adaji at the Fifth Annual National Conference and Awards of the Association of Registered Insurance Agents of Nigeria (ARIAN), in Lagos, said the change of guard at the Commission has brought about changes in the system.
He said the NAICOM must work for the growth of the industry, stressing that there would be nothing to regulate should the industry decline.
He said: “It is part of our mandate to grow the industry. The Commission has a strategic document plan and insurance penetration is the first objective. Nigeria has one of the largest economies in the world and there is no reason why the insurance industry should contribute minimally to the Gross Domestic Product (GDP).
“The industry’s low contribution to the GDP bothers the commission; we want to increase it. In advanced economies, insurance companies own banks but the reverse in the case in Nigeria but we will reverse the trend.”
He, however, asked ARIAN to make available to the Commission the communique that will emanate from the conference so that the commission could have it as a working document.
Meanwhile, the agents at the event re-elected Olamerun Gbadebo as their president.
He promised to consolidate on the works already initiated which are aimed at positioning insurance agents for progress.
He promised to sustain the fight against fake agents, ethical practices and intensify membership drive.
He said membership of the group has grown from 2,810 members to 5713 members in two years, representing above 100 per cent increment.
He noted that the association is still challenged with membership to increase the professionalism and the ethic of our noble mandate to drive Vision 2020.
He further stated that the association is recasting the vision to increase registered members to 20,000 by 2020 in line with Federal Government’s vision. He said: “We believe as grassroots pillar in the industry we appeal to our members both home and abroad, to join this change man tract and register with the association.”
Guest Speaker, President of the National Institute of Marketing, Nigeria, Ganiyu Koledoye, said the problems of insurance in the country has to do with the concentration of the agents on sales forgetting that the success of sales is in marketing.
The Association of Registered Insurance Agents of Nigeria (ARIAN) has named The Nation’s Insurance and Pension Correspondent, as the ARIAN Best Journalist of the Year Award inthe Sixth edition of its awards in Lagos State.
Insurance veteran, Professor Joe Irukwu was crowned the Man of the Year.
Other winners are, Custodian Insurance, which emerged Insurance Company of the Year and Naija FM as Radio Station of the Year.
ARIAN President, Gbadebo Olamerun while presenting said ARIAN nominated Tolu-Kusimo among three other journalist for her consistency in reportage of insurance activities and commitment to insurance agency growth and development.
According to him, she this has increased the reach of agency practitioners likewise her unbias view on topic and sensitive insurance issues.
He also said Irukwu was honoured due to his contributions to insurance development in the nation and the entire globe.
He commended other winners for their contributions to insurance.
Irukwu, who was represented by the President of Professional Insurance Ladies Association (PILA) Mrs Yetunde Adenuga, commended the association for its contributions toward insurance growth and pledged continued support in promoting growth and development in the industry.
FBN Insurance would use penny insurance products to increase insurance penetration which is relatively low in Nigeria, Managing Director, FBNInsurance, Mr Valentine Ojumah has said.
Ojumah, who made this known at a media parley organised by the firm to celebrate its Fifth anniversary, at the company’s head office in Lagos, said this would ensure that more Nigerians embrace insurance in the country.
He expressed the underwriting firm’s commitment to deepen insurance penetration in the country through microinsurance.
According to him, the underwriting firm has recognised the need to use penny insurance products to increase insurance adoption adding that the firm has insurance products as low as N2000.
He said: “FBNInsurance is committed to deepen insurance penetration in the country through microinsurance. From day one, we recognised that a large proportion of our population don’t buy insurance. So, we have come up with what we called penny products, that enables the ordinary person to buy insurance at just N2,000.
“We are one of the few insurers that have keen interest in the retail insurance. We were into microinsurance even before the regulator came up with micro insurance policy. As a company, we recognised the importance of microinsurance to this economy.
“This is why we went into mobile insurance, which remains the easiest means to sell insurance to the low income Nigerians, who may not be able to buy the comprehensive insurance cover. There are more than 100 million mobile lines in Nigeria. So, the easiest way to reach out to them is through mobile insurance, because this product fits a large proportion of the populace. This is a growth area that we are very interested in.”
He said the fifth anniversary celebration of his firm was not just another anniversary but an opportunity for the company to reward its pioneer staff, engage with stakeholders and give back to the society, which, he acknowledged, had been the backbone of the business.
He said without their customers, dedicated staff and a solid ownership, they will not be where they are today.
“In five years, we have made giant strides. It’s time to blow our trumpet and let our people know how far we have come. We have not arrived; we still have a long way to go. We will use this opportunity to establish a concrete framework for the next couple of years.”
“As part of the anniversary activities, the company donated a Dialysis machine to Gbagada General Hospital, which, until now, had just one functional machine. Visits are also planned to Old Peoples’ and Motherless Babies Homes.
FBNInsurance which was incorporated as a business in September 2010, hitherto known as FBN Life Assurance, recently acquired a 100 per cent shares in Oasis Insurance, a general insurance company, in its quest to deliver life and general businesses.
The company now has over 30 retail outlets and prides itself on a rich heritage of performance and longevity due to her association with FBN Holdings and the Sanlam Group, South Africa.
International Health Management Services Ltd (IHMS) has received the West African Quality Health Maintenance Organisation Company of the Year Award. It was presented to the organisation by the Quality Management Development Institute (QMDI).
The award, which was presented to IHMS in Lagos during the annual West African Quality Endorsement, Products/Services Awards (WAQEPSA), was instituted to recognise products, services, individuals and organisations that have excelled when measured against the framework of excellence.
Chief Operating Officer, IHMS, Dr. Chidi Ukandu, who expressed happiness at winning the award, described the achievement as further proof of the commitment of IHMS to delivering total quality service to all its subscribe
“Over the last 14 years, IHMS has dedicated itself to serving our enrollees nationwide with best-in-class health insurance services with a view to promoting health and wellness in our areas of coverage,” Ukandu said.
He stressed: “The award has affirmed our capacity to deliver on our promise and it will spur IHMS and its management to reach for higher quality of service to all its enrollees in accordance with global best practice.”
Ukandu explained that the vision of IHMS is to be the preferred provider of integrated and quality healthcare solutions in Nigeria. This, according to him, is in tandem with the goals of the National Health Insurance Scheme (NHIS).
“From inception, IHMS has supported its vision with the latest and most effective ICT tools and a nationwide select group of primary, secondary, tertiary and ancillary healthcare providers that offer us necessary leverage to meet the needs of our customers.”
The Award Board Chairman, a former President of the Certified Pension Institute of Nigeria, Dr. Olu Ige, said: “IHMS clinched the award from amongst several organisations recommended to QMDI’s selection committee in a public survey that was based on several parameters that included international best practice; operational excellence; quality and focused leadership; quality products/services; sound business ethics and Customers’ satisfaction.”
