The Nation Newspaper

Category: Insurance

  • Anchor Insurance shareholders’ fund grows to N4.1b

    Anchor Insurance shareholders’ fund grows to N4.1b

    Anchor Insurance Company Limited has grown shareholders fund from N3.9 billion to N4.1 billion in the year 2013 representing a 6.4 per cent growth, its Managing Director, Ademayowa Adeduro, has said.

    Adeduro made this known to reporters at a media parley held in Lagos. He said the National Insurance Commission (NAICOM) recently approved the company’s 2013 financial statements. He said   that the company was able to achieve that due to commitment to  best industry practices, adding that the management is preparing to celebrate the company’s 25 years of existence.

    According to him, the company’s income grew to N145 million in 2013 as against N117 in 2012, representing an increase of 24 percent. He said the company has paid claims promptly in excess of N1 billion and has consistently declared profit and paid dividends to its shareholders in the last four years.

    The Anchor boss further said that management has signed Memorandum of Understanding (MOU) with Akwa Ibom State Government to provide Passenger Welfare Insurance cover to passengers from the   state to other parts of the country.

    He said the initiative is a landmark achievement aimed at ensuring that road users at the grassroots get adequate cover when they are travelling out of the state.

    Speaking on the company’s 25 years anniversary which will be marked in Akwa Ibom, he said the highlights of events for celebration are essay competition for secondary schools, commissioning of projects and anniversary dinner/long service award.

    Anchor Insurance was established by the government of Akwa Ibom State in the south of Nigeria as a state-owned insurance company underwriting general business (non-life) and special risk classes of insurance.

    The company was established and licensed in October 1989 and began operations in November of the same year. In 2008, a new management was introduced, headed by Adeduro as managing director to pilot and reposition the company as a 21st Century service delivery brand. The company was rebranded and the brand identity changed from the old logo to the new logo.  In 2009, the company branch network increased from five  to 14 in major 12 cities of Nigeria.

    Determined to take advantage of the local content policy in oil and energy insurance, Anchor Insurance obtained licence from the Department of Petroleum Resources to take part in the underwriting of oil and gas insurance. The same year, the company relocated its corporate head office from a temporary site in Victoria Island  to Lekki Phase 1, with the intention to strategically reposition the company to serve the insuring public better and to provide a more suitable and conducive working environment for staff.

     

     

     

     

    Between the year 2009 and 2011, the company grew its premium income by over 60 per cent and has maintained a steady but fast growing result with the introduction of cutting edge information technology innovations.

    The company recently adopted a five-year strategic plan, which is to focus on ranking among the first ten leading insurance companies in Nigeria in terms of net asset, premium income and profitability before tax by the year 2018, establish a strong presence in the micro-insurance market; gain above three per cent market share in 2018; strengthen the quality of human capital, generate competitive returns on investment; deliver superior and quality service to customers.

  • Insurance industry mourns IGI chief

    Insurance industry mourns IGI chief

    The Nigerian Council of Registered Insurance Brokers (NCRIB) and the Association of Registered Insurance Agents of Nigeria (ARIAN) have commiserated with the board, management and staff of Industrial and General Insurance Plc (IGI), over the passing away of their Executive Vice Chairman and Chief Executive Officer, Dr. Oluremi Olowude.

    The NCRIB described the death of Olowude as a colossal loss to the Nigerian insurance industry and entire nation at large. NCRIB President, Ayodapo Shoderu, noted that the council identified with the immediate family members of Late Olowude, management and staff of his company at this moment of grief.

    He said: “Definitely, the exit of Olowude signals the close of a chapter in the history of the reformation of the industry, considering his pivotal roles in giving the industry a new look through founding of IGI Plc.

    “Olowude’s frankness, resourcefulness and love for the industry were legendary and would be missed for a long time to come.

    In the same vein, the Association of Registered Insurance Agents of Nigeria (ARIAN), said it was shocked and saddened to hear about the demise of the immediate past Chairman of Nigeria Insurers Association {NIA} and Vice Chairman/founder of IGI, Late Remi Olowude.

    ARIAN President, Gbadebo Olamerun said: “We met on different occasions discussing on how to increase and improve the penetration of insurance in our dear country. His contributions were germane to the development of the industry, for he was noted for his doggedness toward improving the insurance industry”.

    Olowude died on Saturday,  September 27, in an hospital in the United States, after a brief illness. He was aged 63.

    The company’s Senior Manager, Corporate Communications, Steve Ilo, announced the death to reporters. The company described by the company as a visionary entrepreneur with remarkable patriotic zeal. He was said to have built a virile conglomerate with interests in insurance, banking, health management services, construction, and telecommunications services.

    He was a frontline member of Corporate Nigeria and the immediate past Chairman of the Nigerian Insurers Association (NIA).

    The company stated: “IGI Plc, which he founded in 1992, is a leading insurance company in Nigeria underwriting all classes of insurance business. IGI is also present in Uganda, Rwanda and The Gambia, with a representative office in London.

    “The Board and Management assure all stakeholders that we shall preserve the IGI legacy and vigorously pursue the dream and vision of the departed founder.

     

  • SA Life grossed N4.63b in 2013

    SA Life grossed N4.63b in 2013

    Standard Alliance Life Assurance Ltd has reported that it achieved N4.63 billion gross as against the N4.3 billion it posted the previous year.

    A breakdown  revealed that  N3.45 billion represents performance in gross life premium income, which includes group and individual life businesses while N1.18 billion came from investment-linked products.

    The company’s gross life premium of N3.45 billion indicates a 17.3 per cent growth over N2.94 billon achieved in 2012.

    During the year under review, the company paid a total claim of N2.78 billion with group life at N1.62billion and deposit administration withdrawal at N1.16 billion to affected policyholders and genuine claims’ beneficiaries in 2013 as against N2.65 billion in 2012.

    Chairman of the company, Olorogun O’tega Emerhor, who made this known during its 14th Annual General Meeting (AGM) in Lagos, said the company was able to achieve this despite the challenging environment in 2013.

    He told the shareholders that the company recorded negative results in 2013 compared with a profit in 2012, clarifying that this was as a result of time apportionment principle applied in recording gross premium income in 2013.

    He reassured the owners of the company that the board was finalising strategies to ensure that the planned July time for the meeting was achieved going forward and hinted that “the issue of insecurity challenge induced by the activities of the Boko Haram sect, escalating day in day out in the Northern region, was a permanent experience all through the year and our business offices in these areas were adversely affected”.

    Despite these challenges, Emerhor told shareholders that they were committed to pursuing strategies that would bring about optimum utilisation of resources and reducing costs, adding it would soon recapitalise.

    He announced that the Board of Directors was working with some potential investors to achieve the above, adding that they are hopeful that the exercise would be concluded before the year ends.

    The Managing Director of the company, Mr. Austin Enajemo-Isire, explained that the financial year ended December 31, 2013 was an eventful year in the industry, explaining that NAICOM’s enforcement of the “No Premium, No Cover” policy embedded in the Insurance Act of 2003 and effective January 2013 was a significant plus for the insurance industry as it was expected to enhance cash-flows and improve operating investment abilities for insurers.

  • Royal Exchange makes N828.2m

    Royal Exchange makes N828.2m

    Royal Exchange Plc has posted a profit before tax of N828.21 in its financial year ended December 31, 2013 as against N703.09 million in the previous year.

    The company comprises Royal Exchange General Insurance Company Ltd, Royal Exchange Prudential Life Plc, Royal Exchange Healthcare Ltd, Royal Exchange Finance & Asset Management Ltd and Royal Exchange Microfinance Bank Ltd.

    Shareholders of company are to receive a dividend of 5k per 50k ordinary share for the year under review.

    The company also generated gross written premium of N9.08 billion, while that of the preceding year was N7.61 billion, an increase of 19 per cent.

    Claims expense for the year amounted to N2.48 billion in comparison with N1.63 billion reported in 2012, an increase of 52 per cent while underwriting expenses increased by three per cent from N2.13 billion in 2012 to N2.20 billion in 2013.

    These translated into net income before overhead expenses of N3.40 billion, as against N2.67 billion in 2012.

    Management expenses, on the other hand, rose to N2.53 billion as against an expense of N1.98 billion in 2012, signifying an increase of 28 per cent.

    The gross revenue grew to N9.08 billion in 2013, up from N7.61 billion recorded in 2012, which translated to net income before overhead expenses of N3.40 billion, as against N2.67 billion in 2012.

    The company’s rise in gross revenue was due principally to increases in premium contributions from the group Life insurance business, Royal Exchange Prudential Life PIc.

    Chairman of the Group, Kenneth Odogwu, made this known at the company’s 45th Annual General Meeting (AGM) in Lagos.

    He said the increase was in accordance with their business expansion initiatives group-wide.

    He explained that the rise in management expenses was attributable to branch expansion, retail business development and investments in e-business and information technology.

    Group Managing Director, Chike Mokwunye said their philosophy of delivering value to our shareholders without compromising on service standards remains sustainable.

    This, he said, was reflective on our performance metrics in 2013 as earnings per share rose 45 from 11 kobo in 2012 to 16 kobo at the close of 2013.

    He said: “Royal Exchange commenced operations for the year kicking off its three-year Strategic Implementation Programme tagged ‘Road to 25’. This unique initiative – to be concluded in 2015 – is billed to have far-reaching transformative impact on our structure, operations and businesses and would reinvigorate our brand towards becoming a stronger, more market-oriented organization with deeper tentacles in the financial services value chain; most especially in the areas of retail insurance, asset management and banking services.

    “Our objective is to build an enduring business premised on’ efficient service delivery and sharper market responsiveness by leveraging on technology to strengthen our market penetration, product innovation and distribution channel.

  • NAICOM mulls development plan for consumers

    NAICOM mulls development plan for consumers

    The National Insurance  Commission (NAICOM) will unveil  an insurance development plan that will include the Insurance Consumers Association of Nigeria (ISCAN), Commissioner for Insurance, Fola Daniel has said.

    He made this known at the  launch of Public Enlightenment and Consumers Protection Programmes of the Insurance Consumers Association of Nigeria (ISCAN) in Lagos.

    Daniel, who was represented by the Commission’s Deputy Commissioner Finance and Administration, George Onekhena, said other stakeholders would also be included in te programme       .

    He explained that the development plan would help to consolidate and ensure that insurance goals were achieved.

    He said the insurance industry is not of help to many  people.

    He said: ‘’People should be able to take at least life insurance regardless of their financial capacity.

    “This is what insurance is all about and the commission feels that the development plan will help with this situation.’’

    The NAICOM boss urged insurance firms to support  ISCAN, adding that it is a business meant for all  stakeholders.

    “The support is necessary as ISCAN activities will increase public demand for insurance and also help to improve the place of insurance stocks in the capital market as well as create employment.

    The National President of ISCAN, Adm. Isaac Areola (rtd), said the association was formed solve the problems created by insurance.

    According to him, the presence of insurance is not being felt by the people.

    He said the body would ensure that claims were paid and awareness created.

    He said the materials on the  activities of the association would be printed and distributed to people.

    The Director-General, Consumer Protection Council (CPC), Mrs Dupe Atoki, said the council would assist ISCAN.

    Mrs Atoki, who was represented by Mrs Oluwaleke Ogundipe, CPC Director, Surveillance Department, said it would offer the council’s channels to distribute materials of the asociation.

    President, Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Soderu said if the consumer’s rights were recognised by operators and the responsibilities of clients respected, the industry would flourish as well wrest itself from perennial image problems.

  • Loss Adjusters urge underwriters to increase fees

    Lost adjusters seem to be making progress to get underwriters agree to a review fees and ensure prompt payment.

    The Institute of Loss Adjusters of Nigeria (ILAN) have been agitating for a review of fees for over five years and had feared extinction of their members from the industry owing to poor remuneration.

    Besides, the underwriters allegedly owe the adjusters  millions of naira.

    But the Nigeria Insurers Association (NIA)invited ILAN to a meeting to discuss the matter.

    ILAN President, Chief Lebi Omoboyowa, said a meeting was held but the initial feedback to the Council was not promising as it appeared that the NIA members were not willing to consider a review of the fees; rather, they seemed more interested in persuading institute’s delegation that the most important thing they should consider is the timely payment of fees.

    Omoboyowa, who explained this to his members during the institute’s Annual General Meeting in Lagos, said the delegation maintained their position and informed the NIA committee that for us as practitioners, we were in the best position to know where the shoes hurt and as such we considered the review of the scale a priority.

    He said: “The NIA Committee then informed us that they didn’t have the mandate to review the fee at that meeting and that they would revert once they had informed their general house of our position.

    “However at the concluded CIIN Professional Forum at the Abeokuta, some of level useful discussions took place, signifying that hope is not completely lost.’’

  • NCRIB gets new PR Manager

    The management of Nigerian Council of Registered Insurance Brokers (NCRIB) has appointed Oladele Ayeleso as its Public Relations and Communication Manager.

    He is a graduate of Statistics of the Polytechnic, Ibadan. He has attended several trainings and seminars both in and outside Nigeria on reportage of insurance and pension industry with over 13 years of working experience spanning diverse functions of reporting and teaching.

    Prior to his career in journalism, Ayeleso has worked as a teacher where he rose to the level of a supervisor in Bofel Group of Schools, Ibadan. He joined African Newspaper of Nigeria, Publisher of Nigerian Tribune titles in 2005 and rose to the level of Chief Correspondent before his exit in 2012.

    Ayeleso joined West Africa Business News as Insurance Editor where he worked until his recent appointment.

    He is expected to use his wealth of knowledge of the industry to further boost the image of the council and that of the entire insurance industry, the Council said in a statement.

    It is expected that the appointment of Ayeleso will further enhance the positive perception of public about the functions and importance of insurance brokers, the group said.

  • Synagogue Church, others should insure buildings, says NAICOM

    Synagogue Church, others should insure buildings, says NAICOM

    Following the Synagogue Church of All Nations (SCOAN) building collapse tragedy, the National Insurance Commission (NAICOM) has advised churches and mosques leaders in the country to consider insurance of their buildings to mitigate risks in the interest of innocent third parties.

    Commissioner for Insurance, Fola Daniel made this call, while expressing sympathising with families of victims of the collapsed building in Lagos.

    Daniel said insurance of public buildings except places of worship, is compulsory in Nigeria as defined in section 65 of the insurance Act 2003.

    He urged Nigerians to insure their risks against unforeseen disasters such as the Synagogue building collapse.

    He said: “Church and mosque leaders in the country should consider insurance of their buildings to mitigate risks in the interest of innocent third parties.

    “I sympathise with families of victims of the collapsed synagogue church building in Lagos and urge Nigerians to insure their risks against unforeseen disasters.”

    About two weeks ago, a part of a multiple storey building inside the premises of the SCOAN, collapsed leaving a total of 80 worshipers dead, while 131 were critically injured.

    The National Emergency Management Agency and the Lagos State Emergency Management Agency, which said the rescue operation at the site has been concluded, announced that they had reached “ground zero” as at Thursday, last week.

    Some of those rescued alive, according to them, have been discharged, while others are still receiving treatments for various degrees of injuries at some hospitals in Lagos.

  • ANCHOR Insurance gets NAICOM’s nod on 2013 financial report

    Anchor Insurance has joined the league of insurance companies that have scaled the hurdle of complying with the International Financial Reporting standard (IFRS) accounting as the industry regulator, the National Insurance Commission (NAICOM) approves its 2013 financial statement.

    Anchor’s Head of Corporate Communications, Kehinde Olaniyi, who made this known in Lagos, said the company experienced a-six per cent growth in gross written premium, which stood at N2 billion when compared to the previous year’s result.

    He said the growth was mainly attributable to increasing marketing network via the various agency outlets spread across the country that focus on providing insurance services that meet the needs of customers.

    The company incurred net claim expenses of over N236 million while the underwriting result at the end of the year amounted to N814 million compared to N1.154 billion earned during the year ended December 2012.  Its investment income was N145 million in 2013 as against of N117 million in 2012, indicating an increase of 24 per cent.

    The company improved operational efficiency in 2013 by a drop of 34 per cent in operational cost from N1.2 billion in 2012 to N0.75 billion in 2013 while its shareholders fund grew from N3.9 billion to N4.1 billion in the year 2013, an increase of 6.4 per cent.

    The Managing Director, Adeduro Mayowa, stated that in the last five years, the company has grown above the industry’s average, paid claims promptly in excess of N1 billion, meet regulatory requirement as at when due, grew its branch network from five to 21 with spread in the major geopolitical zones of Nigeria and has consistently declared profit and paid dividends to its shareholders in the last four years.

    Adeduro said the company is repositioning itself to play big in the insurance market within the next five years. He said that a new strategic plan put in place by the management was recently approved by the Board of Directors. The five years strategic plan seeks to build a unique identity for Anchor Insurance Company Limited, he stated.  Relevant to this is the recent acquisition of Aviation Treaty with up to $500 million.   The plan also envisaged to shore up the company’s current capital base and also build befitting corporate head office in Lagos.

    He further said that part of the objectives of the strategic plan focuses on ranking the company among the first ten leading insurance companies in Nigeria in terms of net asset, premium income and profitability before tax by 2018, establish a strong presence in the micro-insurance market; gain above three per cent market share in 2018; strengthen the quality of our human capital, generate competitive returns on investment; deliver superior and quality service to all our customers.

  • Insurers turn to big data to identify risks

    Insurance firms are turning to “big data” from satellites,social media and even cigarette sales at gas stations to help identify risks and build up customer profiles.

    According to Reuters, insurers and reinsurers hope that real-time analysis of data about personal behaviour will enable them to project damage claims and fine-tune prices to fit the risk being covered, and also help them spot fraud.

    Troves of data are being collected via the technology phenomenon known as the Internet of Things, where cheap, network-connected sensor devices are embedded in all manner of industrial equipment, transport vehicles, appliances in the home and even the health monitors and smartwatches that consumers have begun to wear on their wrists.

    Hamilton Re Limited, a new Bermuda-based reinsurer, hopes that heavy data-crunching technology will give it an advantage over rivals and boost its bottom line.

    “If we do it successfully, we ought to be able to deliver our products at lower cost with an improved loss ratio,” said Bob Deutsch, chief strategy officer for the group.

    “In underwriting, you have a better ability to plot whether you’ve got a concentration of risk in certain aspects of tornado alley,” Mr. Deutsch told Reuters on the sidelines of the annual conference of the reinsurance industry in Monte Carlo, Monaco, last week.