The Nation Newspaper

Category: Insurance

  • NCRIB: Over regulation may stunt growth

    NCRIB: Over regulation may stunt growth

    Businesses in Nigeria are subjected to many unnecessary complex and inflexible rules, foisted on them by the government and regulatory institutions, some of which are difficult to reconcile with public interest goals, the President, Nigerian Council of Registered Insurance Brokers (NCRIB), Ayodapo Shoderu, has said.

    Shoderu said in view of the situation, the Council is advocating reduction of institutional rules and regulations in order to incentivise business and professional growth in the country.

    The NCRIB president spoke at the National Seminar for Federal Regulatory and Intervention Agencies organised by the Institute of Directors (IoD) in Abuja.

    He said that several rules and regulations, which most professionals and business operations are being subjected to may stunt their growth on the long run.

    He noted that cumbersome local regulations concerning financial, health and safety standards, technical procedures, labour development and administrative set up can constrain corporate operations, while overlapping jurisdictions within the three tiers of government have continued to clog the growth of business in the country.

    He said: “The Council advised that Nigeria could borrow a leaf from the United Kingdom (UK) Government, which in 1985, through the department of trade and industry, carried out an inter-department scrutiny of regulatory burdens on particularly small businesses.

    “It was found that compliance with government requirements had imposed significant additional cost on business and this led to the white paper, which spelt out the implications of over regulation.

    “We advised that the nation’s business laws should be constantly reviewed in order to attune them to reality of contemporary development and challenges. It is unfortunate that most of the laws, including business laws in Nigeria are archaic and in dire need of review. Many of the laws carrying infractions or financial punishments for infringements are ridiculously meager, predisposing some unethical players to circumvent the laws, bearing in mind that the penalty for such is inconsequential, compared to cost of compliance.”

    Shoderu added that the Council is suggesting a more inter-agency collaboration as an incentive to business operations. He noted that whether at states or federal levels, institutions rendering similar services must harmonise their operations, bearing in mind that duplication of those agencies contribute more to the misery of business owners and corporate entities.

    We commend the recent integration of NAICOM into the Board of Nigeria Pensions Commission (PENCOM), under the new Pension Reform Act 2014. The step will buoy the development of pension administration in Nigeria as it has brought into central focus the contributions of the insurance industry, which has pension as one of its core mandates, he said.

  • CSR: LASACO Assurance feeds 10,000 Osun students

    CSR: LASACO Assurance feeds 10,000 Osun students

    As part of its Corporate Social Responsibility, LASACO Assurance Plc has partnered the elementary school feeding programme o’ meal of Osun State and has fed 10, 000 students in one day.

    The Group Managing Director of LASACO Group, Olusola Ladipo-Ajayi said the platform is a  strategic avenue for LASACO to connect directly with the students who are future leaders of the country.

    He said LASACO is focused on building strong brand personality to align with its corporate vision stating that the areas of focus for the brand are security and education which are critical platforms to contribute meaningfully to the society.

    The LASACO boss stressed that it has become imperative for brands to deepen equity in order to communicate their values and build strong brand identity.

    He said it is also very important in order to build socially relevant brands to gain a positive projection and end apathy to insurances services by.

    He said: “LASACO is determined to show more interest in the well being of our children as they are the future leaders of Nigeria. We are building a socially relevant brand that impact lives positively. The goal of the LASACO brand is to deliver exceptional stakeholders value by offering first class innovative products and services. Beyond its service offerings, the brand is poised to become a socially relevant brand that places huge premium on societal development.

    “LASACO further exemplifies its brand personality to remain synonymous with improving social cause by donating to the Lagos State Security Trust Fund (LSSTF).The huge donation made to LSSTF by LASACO underscores its avowed commitment to remain a good corporate citizen. This is a strategic avenue to build a strong and virile brand that is relevant to the society.

    “It is the focus of the LASACO brand to create an exceptional brand through its positive perception by the key stakeholders. The intervention for the Lagos State Security Fund is intended to address crime menace and support the government efforts. The strength of any brand is to become active in the minds of the target audience and also generate favorable perception of its activities within the community within which it operates. This is definitely a driving force for the LASACO brand to remain a credible corporate entity amongst all the stakeholders,” he said.

  • CIIN holds picnic

    CIIN holds picnic

    The annual insurance picnic organised by Chartered Insurance Institute of Nigeria (CIIN) is scheduled to hold on Saturday,  August 16, 2014 at Eleko Beach, Lagos.

    In a statement signed by the institute’s Head, Corporate Affairs, Joseph Obah, the picnic is borne out of the firm belief that members should enjoy all round healthy development necessary for optimal performance in the workplace.

    The statement read: “The Governing Council of CIIN provides this ample opportunity annually for members to socialise and relax themselves outside of the workplace environment.

    “This year’s picnic will be flagged off by the CIIN President, Bola Temowo with the support of the principal officers of the CIIN Council and leaders of arms of the industry. It will feature a variety of activities including a fun packed children’s section, beach soccer, music, horse and donkey rides and a variety of carnival-like activities and games.”

    Plans are also ongoing to bring in a top entertainment celebrity to add spice to the occasion. The star attraction of the event will be the CIIN President’s tour of all participating companies’ sheds.

    The chairman of the activities committee of the Institute, Mr. Shakiru Oyefeso urged all insurance companies and practitioners to participate at the picnic, stressing that all modalities have been put in place by the committee to ensure a hitch-free event. He also reaffirmed the Institute’s commitment to excellence in it service delivery to members.

  • Niger shareholders okays N270.8m dividend

    Niger shareholders okays N270.8m dividend

    NIGER Insurance Plc shareholders have approved dividend of N270.8 million for the 2013 financial year.

    The amount represents 3.5kobo for every share of 50 kobo and will be paid on August 4.

    The company made a profit after tax of N599.4 million during the  year compared to N470.1 million in 2012, representing a 27.5 per cent growth.

    It achieved a N10.4 billion gross written premium in 2013 compared to N10.3 billion recorded in 2012 while its net operating profit stood at N674.3 million compared to N256.5 million for the preceding year.

    The Group’s profit after tax during the year under view was N627.4 million compared to N776.2 million achieved in 2012.

    Its Chairman, Bala Zakariya’u, made this known at the company’s Annual General Meeting (AGM) in Ilorin.

    He said the firm was looking into the possibility of doing away with any loss sustaining subsidiary so as not to impact negatively on the group performance.

    He disclosed that the total comprehensive income declined from N988.2 million in 2012 to N794.6 million in 2013 and N1.2 billion in 2012 to N822.5 million in 2013 for the company and group respectively.

    According to him, this is attributable to the stability in the value of property, plant and equipment and available for sale financial assets following the adoption of IFRS reporting format in the previous year and the recognition of the gains/loss thereof in the financial statement during the period.

    He said despite the harsh operating environment, they were able to deliver value to our shareholders noting this is a testimony that their business model is resilient enough to deliver on a consistent basis.

    Zakariya’u noted that the future of insurance business in Nigeria is bright as the National Insurance Commission (NAICOM) continued to deepen the industry through various initiatives.

    He said the company is poised to grow its premium income and profitability in the coming years with the introduction of new products including a flagship annuity scheme, travel insurance and other products.

    He said: “We will also focus attention on revamping and reintroducing old products after making them more attractive to the insuring public. We will continue to strengthen our renewed strategic alliances with insurance intermediaries and clients to engender improved market share and to advance our leadership position in the industry.

    “The benefits from the implementation of our recently introduced performance improvement and organisational restructuring project have started manifesting as the speed and efficiency of our service delivery have greatly improved; thus enhancing our ability to add more value to all stakeholders.

    “Niger is also refocusing its business strategy towards retail and micro- insurance segments in view of the stiff competition and unsteady nature of government corporate businesses. In the years ahead we will focus on reappraisal of our investment portfolio with a view to maximising earnings and minimising risk thereof. The implementation of the enterprise wide Information and Communication Technology (ICT) also enabled our business process improvements which gave us sustainable growth possibilities, he said.

    On the liability on staff retirement benefit scheme, he said: “Following the enactment of the Pension Reform Act by the Federal Government in 2004, the management of the company went into negotiation with the staff union members on how to resolve and integrate the old scheme, which had become a difficult legacy issue. It is pertinent to report that management has finally reached an agreement with the staff unions regarding the liability on the staff Retirement benefit scheme. As a result the sum of N1.649bilion has been charged to the account representing the total liability of staff benefits for past services as at winding up date”.

  • 22 firms generate N179.9b gross premium

    22 firms generate N179.9b gross premium

    • Leadway, Custodian lead

    Twenty-TWO insurance companies have generated N179.9 billion gross premium income in the 2013 financial accounts, areport by the National Insurance Commission (NAICOM) has shown.

    This represents a growth considering that the result is coming from less than half of the 59 companies total premium income expected for the 2013 financial year.

    Besides, the industry recorded a gross premium income of N300 billion from 2008 to 2012.

    The companies paid a total gross claims expenses of N59 billion.

    Leading the pack are Leadway Assurance with  N41.7 billion, Custodian & Allied Insurance, N22.9 billion AIICO Insurance, N22.8 billion; Continental Reinsurance, N13.85 billion, Mansard Insurance, N13.58 billion and Niger Insurance N10.44 billion.

    Others are Royal Exchange, N8.87 billion, Sovereign Trust Insurance N8.67 billion; Zenith Insurance, N6.4 billion; Cornerstone N5.3 billion; ADIC (NSIA) N4.66 billion; Regency Alliance N3.1 billion; FBN Life N3.89 billion; Law Union & Rock N3.4 billion and Linkage Assurance N2.68 billion.

    Also, Wapic Insurance paid,N2.38 billion; Royal Prudential Life N2.14 billion; UBA Metropolitan Life N1.57 billion; UBA Metropolitan Life N1.57 billion; Zenith Life N1.52 billion; Oasis N1.24 billion and Wapic Life N655 million.

    According to the report, which was released in Lagos by NAICOM’s Assistant Director and Head, Corporate Affairs, Rasaaq Salami, titled, ‘Status of 2013 Financial Statements of insurance companies as at July 25, this year, aside the 22 firms, which got approval on their account before the June 30 deadline on submission of annual accounts, 16 others that were also able to submit their annual accounts before the deadline, are yet to get approval owing to queries issued to them by NAICOM.

    The firms are Lasaco Assurance, Lasaco Life Assurance Limited; Sterling Assurance; NEM Insurance; Equity Assurance; Old Mutual (Oceanic Life) Nig. Life and Prestige Assurance.

    Others are Anchor Insurance; Guinea Insurance; KBL (PHB) Insurance; ARM (Crystal) Life; Fin Insurance Company; Old Mutual (Oceanic) Insurance General; Standard Alliance Life; Unitrust Insurance Company and Nigeria Reinsurance Corporation.

    The report further showed that four firms submitted their financials in July after the deadline and their accounts are under review. They are Mutual Benefits Assurance, Mutual Benefits Life Assurance Limited, Universal Insurance Company Limited and Consolidated Hallmark Insurance.

    Meanwhile, 17 firms are yet to submit their accounts. They include African Alliance, Capital Express, Goldlink, Great Nigeria, Industrial & General Insurance, International Energy Insurance, NICON Insurance, Nigerian Agricultural Insurance Corporation, Staco Insurance, Standard, UNIC, Union Assurance and Unity Kapital.

    Others are Alliance & General Insurance, Alliance & General Life, Investment& Allied and Spring Life Assurance Plc.

    Going by the regulation, these group of firms that are yet to submit before the deadline of June 30, would pay N5,000 fine to NAICOM for each day that they are  in default.

  • FBN Life Assurance pays N548m claims in six months

    FBN Life Assurance pays N548m claims in six months

    FBN Life Assurance Ltd paid  N548 million claims to policy holders in the first half of its operations, the Managing Director, Val Ojumah has said.

    Ojumah said the company enjoys paying claims because it is the main reason it is in business.

    He said the firm had also made claims payment its cardinal selling point.

    He assured customers of prompt claims payment in case anything goes wrong with them as it relates to the policies.

    Ojumah said the company wrote  life business of N3.2 billion in the period under review, adding that they intend to hit N11 billion by the end of the year.

    He said the company performed well going by the over N500 million profit recorded in its 2013 financial year.

    According to him, the profitability has placed them among the top five most profitable companies in life insurance segment of the insurance industry.

    He added that the firm achieved success as a result of its belief in high ethical standard, professionalism and efficiency.

    The ‘No premium, no cover’ policy, he said, also contributed to their cash boost.

    He noted that it, however, affected the number of clients who are renewing their businesses by 100 per cent.

  • STI to raise N1.1b through rights issue

    STI to raise N1.1b through rights issue

    Sovereign Trust Insurance (STI) Plc is set to raise additional capital of about N1.1 billion from its shareholders through a rights issue, the Managing Director, Wale Onaolapo has said.

    In a statement, the Head of Corporate Communication and Brand Management Department, Segun Bankole, said the company was placing on offer by way of rights, N2,290,585,798 billion ordinary shares of 50 kobo each at 50 kobo per share on the basis of one new ordinary share for every three ordinary shares of 50 kobo each subject to approval of the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).

    He explained that the rights issue is a necessary step towards accomplishing its five year strategic blue-print which amongst others, will reinforce its competitiveness in the Nigerian market and improve its market share.

    He urges existing shareholders in the company to see this as a vista of opportunity to take up their rights during the offer and buy into the growth objectives of the company.

    He said: “In addition to ensuring the actualisation of the company’s goals, the exercise will further boost the aspiration of the company to creating exceptional values for all its stakeholders.

    “In achieving the huge tasks that have been placed before us, we have identified that a very robust capital base is critical to the realisation of our strategic objectives, hence the need to call on shareholders to exercise their rights when it eventually opens, he added.

    ‘’The principal activity of the company continues to be the provision of all classes of non-life insurance and special risk insurance and the fundamentals of its business remain solid.’’

    It added: “In today’s challenging economic environment, the company is continually poised to enhancing its capital structure and fortifying its investments portfolio for better positioning in taking advantage of the burgeoning opportunities in the industry”.

  • Niger Insurance shareholders get N3.50 dividend

    Niger Insurance shareholders get N3.50 dividend

    Shareholders of Niger Insurance Plc will receive a dividend of N3.5 per 50k ordinary share for the financial year ended December 31, 2013, its Managing Director, KolapoAdedeji has said.

    Adedeji, who made this known during the company’s 44th pre- Annual General Meeting (AGM) press conference said the dividend will be paid to the shareholders once the AGM to be held in Ilorin, Kwara, approves its financial report.

    He said the company’s gross premium income in 2013 rose N10.44 billion as against N10.33 billion recorded in 2012.

    The Profit before Tax (PBT) he said, increased by 163 per cent in 2013 from N256.56 million recorded in 2012 to N674.30 million in 2013 while investment reduced by 33 per cent in 2013 from N975.37 million in 2012 to N649.50 million.

    Similarly, shareholders fund increased to N7.88 billion in 2013 from N7.08 billion in 2012, while the total assets increased to N24.18 billion in 2013 from N21.73 billion in 2012, he added.

    The Niger boss however said the results were still subject to the approval of the shareholders at their AGM.

    Speaking on the achievement, he said: “Five years ago, the company embarked on transformation programme, with emphasis on enhanced speed and efficient service delivery. We are pleased to inform you that this hub of transformation agenda has started yielding positive results.

    “We have been able to review most of our business operations, and in turn there are clear indices of improved operating performance.

    This is evident in our financials under review. We are ready to key into the various programmes of the Federal Government and its Agencies to maximise our income and add more value to our shareholders and other stakeholders”.

    On the future plans of the company, Adedji said they would launch new products, repackage the existing ones to suit their various clientele and up-grade information technology tointegrate our regional and branch offices.

    “We have established an e-commerce department and now use it to drive our operations. We have adopted e-payment systems for premium collection. We will continue to build business alliances and embark on more aggressive marketing.

    “We will not relent on our drive towards human capital development which is key to achieving the overall objectives. Also as a major player in the industry, we will continue to support the regulatory framework and implementation of its measures and guidelines.”

  • NCRIB, NIA unite to enforce ethics

    NCRIB, NIA unite to enforce ethics

    Brokers and underwriters have resolved to reverse the trend of unethical practices that has plummeted the fortunes and image of the industry.

    The resolution was made during a meeting between delegation of the Nigerian Council of Registered Insurance Brokers (NCRIB) and the Nigerian Insurers Association (NIA) in Lagos

    The two bodies were of the view that the jettisoning of basic insurance principles had robbed the industry of its expected place in the scheme of the nation’s economy.

    Taking a retrospective look at the industry in the 70s towards mid-80s, the operators noted that the players were united and cohesive on issues relating to market ethics and practices, making operational environment inclement for unethical players.

    NCRIB President, Ayodapo Shoderu said insurance brokers and underwriters were like Siamese twins that must always work together for the progress of the industry.

    He said that operators must eschew unethical practices that are inimical to professionalism in order for the industry to gain its lost grounds.

    NIA Chairman, Mr Godswill Wiggle said the two bodies needed to revive their technical joint committees where issues bordering on the operation of the two parties could be resolved before they smear the image of the industry before the public.

    Meanwhile, the two bodies hailed the administration of Governor BabatundeFashola for its strong belief in insurance.

    They applauded the Lagos State government for its effective risk management and patronage of insurance services, noting that the industry would soon put in place a programme to appreciate and celebrate the government.

  • ‘Leadway Group thrives on good corporate governance’

    ‘Leadway Group thrives on good corporate governance’

    Promoting high standards of corporate governance for appropriate balance of power, increased accountability and greater capacity of the Board of Leadway Group for independent decision making has continued to drive its growth, the company’s Chairman, Mallam Umar Yahaya has said.

    He made this statement at the company’s 42nd Annual General Meeting (AGM) held in Lagos.

    Yahaya also said there was an impressive growth in the Group’s assets to the tune of N101.2 billion in its 2013 audited financial year results.

    He said apart from the parent company, Leadway Assurance Company Limited, other companies within the Group include Leadway Capital and Trusts Ltd., Leadway Hotels Ltd. and Leadway Properties and Investments.

    He noted that the N101.2 billion represents 47 per cent growth from the Group’s N68.8 billion figures recorded in the 2012 financial year.

    He reaffirmed the company’s commitment to clients by paying claims in excess of N10.9billion, a 51 per cent increase from the N7.2 billion record of 2012.

    He said: “Leadway Group has come a long way since the establishment in 1970 to carry on the business of composite insurance.

    “It has an effective Board of Directors comprising men and women of integrity with several decades of experience in the financial services and other diverse fields. The Board is collectively responsible for the success of the company and works with management to achieve this with the management remaining accountable to the Board.

    The Board meets at least four times yearly and objectively take decisions in the interests of the company. The Chairman and Chief Executive officer are separate persons and this is to ensure an appropriate balance of power, increased accountability and greater capacity of the Board for independent decision making”.

    The Chairman further said that though the management has an obligation to supply the Board with complete, adequate information in a timely manner, relying purely on what is volunteered by management is unlikely to be enough in all circumstances and further enquiries may be required if the particular Director is to fulfill his or her duties properly. Hence, the Board has separate and independent access to the Company’s senior management.

    The Company regularly publishes its statement of accounts in two national dailies to inform the public of its financial standing and notices are regularly sent to shareholders in compliance with the Companies and Allied Matters Act,” he said.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Established 44 years ago, LEADWAY is a composite insurance company underwriting both Life and General Insurance business with 21 branches spread across Nigeria. It also offers subsidiary financial services like Bonds, Secured Credit, Miscellaneous financial losses and Fund/Portfolio management. With core values of i-SCORE meaning; integrity, Service, Costumer focus, Openness, Respect-for-the-individual and Excellence, LEADWAY’s reputation has been attained by the continuing pursuit of improvements to maintain its competitive advantage within a very soft market environment.