Category: Insurance

  • Cornerstone  partners FRSC on  accidents eradication

    Cornerstone partners FRSC on accidents eradication

    orried by the high rate of road accidents and the vulnerability of children and young people, Cornerstone Insurance Plc has entered into a bilateral partnership with the Lagos Zone RS2 Headquarters of the Federal Road Safety Commission (FRSC) to check the menace and its attendant fatality.

    Acting Zonal Commanding Officer John Meheux, who spoke at the inauguration of the Safe Route to School road initiative of insurance firm in partnership with FRSC, said the deal is in line with the commission’s mission statement and pillars of decade of action on promotion of stakeholders co-operations as articulated in its corporate strategic goal 2013.

    Meheux said the  project was initiated by Cornerstone as an integral part of its Corporate Social Responsibility (CSR) with 2013 as a pilot phase.

    He said the Command entered into a five-year project implementation understanding with the firm with the concept for each year to be designed and implemented by the two bodies in line with the biddings of the corps and the strategic goal for the year.

    He noted that the project was designed with the laudable objectives of carrying the messages of road safety through motor parks, media advocacy like radio, TV and print media and handbills with series of road shows, all structured towards community based advocacy.

    He added that the implementation of the pilot phase which started with inaugural rally in April, last year started with a road show and consummated with motor park rally with the theme “Stay alive, prevent road crashes: Your intervention can make a difference”.

    He said: “It is my strong belief that the various successes recorded in the rallies and other advocacies, formed part of the achievements of the Zone in reducing road traffic crashes by 33.7 per cent as against the 2013 strategic goal mandate of 20.

    “Road accidents are the highest threat and have a tremendous impact on children and young people. Globally, road accidents are the leading cause of death for young people aged between 10 and 24 years, and is predicted that by 2015, it would be the leading cause of premature death and disability for children in developing countries from age five and above (WHO). It is therefore no coincidence that the UN Third Global Road Safety Week held in all FRSC formations, and in the 187 United Nation member countries had as its theme “Keeping Children Safe on the Roads”.

    “Our collaboration with Cornerstone Insurance for 2014 has as its theme ‘Safe Route to School’. This theme is very apt and is in keeping with global thinking. All children have a right to safe walk to and from school, markets, hospitals, places of worship, among others.

    He explained that FRSC Zone 2 comprising Lagos and Ogun states would assign Road Guard Marshals to assist our children cross the roads at designated points near their schools at peak periods between 7 am to 9 am and 12 noon – 2 pm and also teach our children on how best to use Zebra crossings, foot bridges, and other road signage, using the Road Safety Clubs in schools.

    Meheux encouraged other stakeholders to emulate the efforts of Cornerstone and appealed to all and sundry to ensure that school children and indeed all children are protected when they go to and back from school.

    General Manager, Cornerstone Insurance, Mrs Yinka Adekoya, said the company care about the environment and the community and the constant pursuit for innovative ways to respond to society’s biggest challenges drives their approach to corporate social responsibility (CSR).

    She said: “For instance, we are worried and disturbed by the soaring rates of road accidents in the country. In fact an account shows that road crashes claim more lives that HIV/AIDS and Malaria combined in Nigeria. This is a big challenge that requires both conscious and collective efforts.

    “Usually, as an insurer, you insure and you pay when people die; but for us the real test is: We don’t want people to die. We want people to live happily; we don’t want people to be maimed as an aftermath of road crashes. This is why we felt it is an opportunity to partner with one of the most credible agencies in the road safety value chain to touch lives and minimise the impact of road crashes.

    “This year, we are turning our attention to an important segment of the society; and that is the children. The kids are the most vulnerable member of the society, a respectable number of them walk to school every day under challenging circumstances, safety wise.”

    She said there is a report that a child is knocked down every other day en route to school by unwary driver and that 80 of children related causalities can be linked to lack of adequate safety road signs.

    “This is what informs the ‘Safe Route 2 School’ CSR project. From today into the next few months, we would be activating scores of schools across Lagos State. The plan is to put in place illuminated safety signs and zebra crossing markings with on the spot safety sensitisation on the use- of these facilities. The- exciting part of the- project is that, nomination of school for activation is opened to the public. If you want your school nominated; all you are required to do is to log on to our website.

    “Beyond this, we have also provided additional platform to give everyone the opportunity to take part in this project. If you want to endorse this project, please do not miss the opportunity to sign on to the pledge to help the children get to school safely. This banner would be on tour across Lagos. This way, we hope to speak to the inner persons of as much number as we contact to commit to the safety of a Nigerian child,” she said.

  • NAICOM Steering Committee on Micro Insurance, Takaful to submit report soon

    Micro Insurance and Takaful Steering Committee set up by The National Insurance Commission (NAICOM) in December last year is set to submit their report to the Commission.

    Chairman of the committee and Director-General, Nigerian Insurers Association (NIA), Mr Sunday Thomas gave this hint while speaking with The Nation in Lagos.

    He said the committee had been working and would submit its report soon.

    He said the the committee’s primary responsibility was to make micro insurance successful.

    According to him, members of the committee were drawn from NAICOM, NIA, Central Bank of Nigeria (CBN), Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), National Association of Micro Finance Banks, among others.

    He said the job assigned to them was significant, adding that they were conscious of the urgency of the assignment, and would do their best to meet the  expectations of the  NAICOM.

  • Shareholders laud insurance firm N4.3b profit, dividend

    Shareholders of Custodian and Allied Insurance Plc have lauded the board and management of the company for growing the group’s profit before tax to N4.33 billion. They also praised the firm for announcing a dividend of 16 kobo dividend per sharein 2013 financial period.

    National Coordinator of the Independent Shareholders Association of Nigeria, Mr. Sonny Nwosu, who spoke at the 19thAnnual General Meeting (AGM) of the firm in Lagos, cautioned the firm to ensure its management expenses does not rise beyond limits.

    He also criticised the ‘No premium, no cover’ policy of the National Insurance Commission (NAICOM), noting it is a problem for firms and that it may affect the growth of their businesses.

    He advised the firm to continue to educate the Nigerian public on the need to be insured.

    Chairman, Custodian and Allied Plc, Chief Ade Ojo, affirmed that the company would pay 16 kobo dividend to its shareholders.

    He said this demonstrates the firm’s regular dividend payment to its shareholders.

    Ojo said this was the first consolidated result of the post-merger Custodian group with a top and bottom line growth.

    According to him, the growth was fuelled by 28 per cent increase in gross premium income and 38 per cent rise in fees and commission income while the anticipated cost savings that were envisaged in the merger manifested in noticeable reduction in underwriting expenses which went down by 15 per cent and management expenses which went down by eight per cent in spite of the generous redundancy benefits paid to the disengaged employees.

    He said the group’s profit before tax was N4.33 billion while the earnings per share and net asset per share increased to 60 kobo and 325kobo respectively.

    Total asset, he said, stood at N45.65bn while shareholders’ funds were N19.1 billion.

    He said that the successful integration of the Crusader operations and the resulting strong entity with enviable result had demonstrated that Custodian is ready for the future.

    He said: “Our strong balance sheet and financial capacity, expanded and diversified product portfolio, operational efficiency and highly professional team will ensure that the company maintains its leadership position and provides superior return on investment to our loyal shareholders.

    “The company’s name was changed to Custodian and Allied Insurance Plc, when it was sanctioned by the court after it completed a successful acquisition.”

    The company is an investment holding company with investment in life and non-life insurance subsidiaries, Pension Fund Administrator and a trust company and is also been classified under the other financial services subsector of the financial services sector of the Nigerian Stock Exchange official list.

    He said that Custodian shares had since been issued to the erstwhile shareholders of Crusader (Nigeria) Plc and had grown from a company with 23,812 shareholders as at December 2012 to 41,003 as at December 2013.

     

     

  • Custodian & Allied records 90.7% profit

    Custodian & Allied records 90.7% profit

    Custodian and Allied Plc has announced a profit before tax of N1.3 billion for the unaudited first quarter results ended 31 March 2014.

    This represents an increase of 78.5 per cent over the N746.9 million recorded in the corresponding period of 2013.

    Head, Corporate Affairs, Custodian, Bunmi Aderemi made this known in a statement.

    She said the results have been transmitted to the stock market.

    She noted that profit after tax increased by 90.7 per cent from N587 million to N1.1billion for the period in review, while the gross written premium was N5.9 billion from N4.1 billion written in the same period in 2013 representing 41.8 per cent increase.

    The Group’s asset base increased from N45.6 billion as at  December 31, 2013 to N47.6 billion for the first quarter ended  March 31, 2014, indicating 4.2 per cent growth within a three-month period.

    Commenting on this remarkable performance, MrsAderemi said, “Our performance in the first quarter of 2014 is a reflection of our expertise in delivering quality innovative service whilst offering a varied product portfolio to our clients, ultimately giving value to all our stakeholders. As we strive to be Africa’s insurer of choice, our aim is to keep improving on past performance, realize untapped potential in the various sectors we operate in, whilst maintaining efficiency in the system.’’

     

    The Custodian Group offers services including general and life insurance, pensions, trusteeship and property investment.

     

  • NEM, Unic, others pay N60m to NSE

    NEM, Unic, others pay N60m to NSE

    At least 21 listed firms have paid N60 million penalties to the Nigerian Stock Exchange (NSE) for submitting their 2012 financial accounts late. This was revealed in the X-Compliant Report dated April 25 released on the NSE website. The report showed that the companies filed their financial statements to the exchange after the regulatory due date lapsed. It further showed that Universal Insurance Plc paid N4.2 million as fine  while Guinea Insurance Plc paid N3.8 million fine. Equity Assurance Plc paid N3.2 million each while Great Nigerian Insurance Plc was equally fined N3.8 million. NEM Insurance Plc, on the other hand, got N3.5 million fine, Prestige Assurance paid N2.9 million, Law Union and Rock Insurance Plc N2.7 million fine, Regency Alliance Insurance Plc N2.5 million, Cornerstone Insurance Plc paid N2.8 million, Unity Kapital Insurance Plc N2.1 million, among others.

  • 30% of brokers fail to file returns to NAICOM

    30% of brokers fail to file returns to NAICOM

    BOUT 30 per cent of brokers have failed to file returns to the regulatory body, the National Insurance Commission (NAICOM).

    President, Nigerian Council of Registered Insurance Brokers (NCRIB), Ayodapo Shoderu, made this known at a meeting between the Commissioner for Insurance, Fola Daniel and council executives held at the council’s members evening hosted by Old Mutual Life Assurance Company Limited in Lagos.

    Shoderu said the commission  would not renew the licences of erring brokers.

    He warned brokers to be cautious and adhere to the regulations of the commission.

    He also said individuals seeking to establish insurance broking firms will henceforth have to scale more stringent hurdles before they can be admitted as members of the NCRIB.

    He stressed that the body will be more stringent in admission of new members to prevent infiltration of the broking world by opportunists who may want to borrow the garb of insurance brokers under whatever guise.

    He noted that whatever bad name the insurance industry has attained today could be said to have been caused by the activities of these unethical practitioners who are always set to dupe unsuspecting insurance clients, a trend which he says  must stop.

    He further disclosed that NAICOM has agreed to process this year’s renewals with 2012 accounts, as against the earlier position which stipulated that 2013 International Financial Reporting Standards (IFRS) compliant accounts should be used.

    He said the Commissioner for Insurance Fola Daniel agreed based on appeals by the council leadership.

    According to him, the commissioner was not happy with the number of companies that have so far submitted their 2013 accounts.

    Managing Director, Old Mutual Life Assurance Company Limited, Keith Alford, called for more collaboration between brokers and underwriters.

    He added that the job of taking the industry to lofty heights rests on both parties.

     

     

    He said his company seeks to be number one or two in the industry, adding that to achieve this, the company is focused on identifying the needs of Nigerians, creation of financial education, innovation and good customer service.

     

  • 20,000 agents unlicensed, says Olamerun

    20,000 agents unlicensed, says Olamerun

    NO fewer than 20,000 unlicensed agents transact business in the country, the new President, Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Gbadebo Olamerun, has said.

    He has therefore  called on insurers to ensure that their agents are licensed by the National Insurance Commission (NAICOM).

    Olamerun, who disclosed this at his investiture in Lagos, said his target along with other new executives is to register 20,000 agents at the end of 2015. The association currently has 3, 000 registered agents.

    His position is hinged on the belief that increasing the number of registered agents with NAICOM will increase premium collection which will lead to increase in insurance gross domestic product (GDP) contribution in the country.

    He said: “My vision is to make insurance agency business easy by collaborating with other stakeholders in and outside the industry, especially with state governments, NAICOM, NIA, CIIN, NCRIB etc to foster the deepening of insurance penetration in Nigeria. We will also collaborate with my constituency, the agents, in introducing interactive session with all insurance agents tagged: Members Evening Initiative (MEI), which will be a quarterly strategic session where agents will be hosted by one of the leading insurance companies.

    “This drive will afford all the major players in the industry opportunity to meet with the agents, increasing their capacities, give them a positive mind set and sense of belonging.

    “As we speak, we have 3,000 registered agents with NAICOM and we project that by 2015, we would have registered  20,000 agents into the books of ARIAN and NAICOM.”

    On the Market Developmental Restructuring Initiative (MDRI), he noted that the association will drive the project with a national holistic view of mobilising all insurance agents for its execution.

    Speaking further, he said his leadership will continuously equip its members on the skills needed to sell insurance business to the grassroot

    He said: “We will also ensure agents are certified by CIIN because we have been able to push for a reduction of the amount for the proficiency test certification which is the most expensive requirement for agent’s registration with NAICOM.

    ‘We also want to add value to agency network by recruiting more matured executives such as retired personnel and retrenched bank staff to market specific products such as annuity.

    “The era of commission only aided and abetted sharp practices among some agents which have affected the image of the insurance industry. However, ARIAN has set up a portal in its website to check the activities of members, relate with HR of each organisation, and collaborate with the insurance companies to reduce sharp practices to the barest minimum.”

    Chief Olusola   Dada of Anchoria Investment and Securities Ltd called on insurance companies to expand their networks to the rural areas, adding that most people in the rural areas are still very ignorant of the importance of insurance.

    He said that insurance is still very strange to the people in the rural areas, adding that with the issue of financial inclusion, insurance operators must go beyond what they are doing to boost insurance penetration in the country.

  • Etisalat, FBN Insurance launch Sure4Life

    Etisalat, FBN Insurance launch Sure4Life

    FBN Insurance Limited and Etisalat have introduced ‘Sure4Life”, an airtime-based insurance product designed to increase penetration and consumer access to affordable insurance products via the mobile phone.

    Director, Business Segment at Etisalat Nigeria, Lucas Dada, who spoke at the launch, said the product will help drive availability and access to agood number of  uninsured Nigerians.

    In addition, it will provide Etisalat customers with one month free life insurance cover between May and July, this year, he said.

    Dada noted that the partnership would bring inexpensive and easy  reach to insurance products to the benefit of Etisalat’s growing prepaid and post-paid customers.

    He said: “Sure4Life is an innovative product which takes away all the challenges that may be associated with taking an insurance policy and allows Etisalat subscribers to access and maintain insurance coverage with ease. It is in line with our reputation as the most innovative telecommunications company to provide such life-changing products to our customers.

    “The plan is optional and open to all registered Etisalat subscribers that are between 18 and 80.”

    Managing Director and Chief Executive Officer, Val Ojumah  of the underwriting firm said the initiative will help correct the inaccurate perception that insurance is only for the rich and reduce the complexities and paperwork often associated with insurance. The initiative also supports our aspiration to bring the benefits of insurance to Nigerians who otherwise would have remained uninsured.

    He explained that with a monthly insurance premium of N100 monthly, registered Etisalat subscribers will have the benefit of a flat of N100, 000 payable to the beneficiary in case of death of the policy holder and a maximum of N10, 000 for medical expenses in the event of an accident.

    Death benefit per life shall be limited to N200, 000, maximum of two Etisalat registered numbers, whereas the medical expenses benefit per any one life shall be limited to N20, 000, maximum of two Etisalat registered numbers, he said.

  • NAICOM okays four insurers’ 2013 accounts

    NAICOM okays four insurers’ 2013 accounts

    Four insurance firms have had their 2013 financial accounts approved by the National Insurance Commission (NAICOM) in the first quarter of 2014 as required by law.

    The four firms are Mansard Insurance Plc, Custodian General Insurance, Custodian Life Assurance Ltd and Cornerstone Insurance Plc.

    The commission disclosed this in a circular titled: “Submission Status of 2013 Financial Statements of Insurance Companies as at April 23, 2014.

    The early approvals is a departure from the past where insurers find it difficult to submit their true financials and get approval from the regulator as and when due.

    While Mansard Assurance Plc has already done its AGM, the other three are expected to do theirs soon.

    Meanwhile, the accounts of Zenith Life Insurance Limited; NSIA Insurance Limited; FBN Life Assurance Limited; Wapic Insurances Plc; Zenith Insurance Company Limited and Wapic Life Assurances are being reviewed.

  • Mansad Insurance records 92 %  drop in trade receivables

    Mansad Insurance records 92 % drop in trade receivables

    Mansad Insurance Plc has witnessed a 92 per cent drop in its trade receivables from N2.04 billion recorded in the 2012 financial year end to N166 million in 2013.

    The drop in trade receivable, is coming on the heels of the recent enforcement of ‘No premium, no cover’ policy by the National Insurance Commission (NAICOM) meant to stem the growth of outstanding premiumsin the insurance industry.

    The company, however, rannounced that its Profit After Tax grew fromN1.6billion in 2012 to N2.1 billion in the period under review, while its Net Premiums grew to N7.54billion from N7.11billion in 2012. PAT rose 31 per cent from N2.1billion in 2013.

    Its gross premium also grew by nine per cent in 2013 to N13.59billion from N12.44 billion in 2012, while its Net Premiums grew by six per cent growth in 2013 to N7.54billion from N7.11billion in 2012.

    The Chairman, Victor Osibodu, who made this known at the 22nd Annual General Meeting of the underwriting firm held in Lagos, said it will explore new and exciting opportunities to actualise its expanding ambitions and exceed its stakeholder’s expectation.

    He said in April 2013, Mansard Insurance added a Health Insurance subsidiary to the group.

    He said: ‘’Mansard Health Limited is fully functional with a full complement of staff and is leveraging optimally on the technology and distribution platforms of Mansard Insurance. The HMO is currently signed on to 400 hospitals across the 36 states of the federation and the FCT.

    Mansard Investments Limited continued its business of managing the company’s investments and those of third parties.

    “The company restructured its team to serve along private and institutional lines, and has commenced the process of opening up internal products to public subscription. It closed the year with funds under management of N23.2billion, and a Profit before Tax of N108.45million compared to N114.5million in 2012.

    “As a result of this performance, the company’s board has proposed a final dividend of 4k for the year ended December 2013 having previously paid 4k to the shareholders during the year as an interim dividend, bringing the total dividend to 8k.”