The Nation Newspaper

Category: Insurance

  • Insurers record 4, 688 life annuitants

    Insurers record 4, 688 life annuitants

    Despite the late take-off of sales of Life Annuity insurance policy to retirees by insurers under the Contributory Pension Scheme (CPS), the product has continued to gain acceptance as the number of annuitants rose from 3, 607 in the first quarter of last year, to 4, 688 in the second quarter.

    According to the report by the National Pension Commission (PenCom), a total premium of N4.8 million was approved for payment to insurance firms on behalf of the 1,081 retirees in return for monthly payments, amounting to over N48 million.

    Meanwhile, Programme Withdrawal (PW), a policy sold to retirees by Pension Fund Administrators (PFAs) and introduced by PenCom since 2007, has maintained a lead to annuity which kicked off in 2009.

    In the period under review, total number of retirees on PW increased by 8.4 per cent from 64,036 in the first quarter of last year, to 69,469 at the end of the second quarter of last year, while the number of annuitants increased from 3,607 to 4,688.

    A comparative analysis of retirees on annuity and PW showed that while 4.66 per cent of the retirees were under annuity, 95.34 per cent came under programmed withdrawals.

    PenCom’s Acting Director-General, Mrs. Chinelo Anohu-Amazu, said the relatively lower number of retirement by annuity could be explained by the delay in the take-off of the retirement plan, which started in September, 2009 as a result of the consolidation in the Insurance Industry.

    A breakdown of the number of retirees into private and public sectors showed that while the public sector accounted for 4,473 retirees, representing 82.33 per cent in the second quarter of the review period, the private sector accounted for 960 retirees, or about 17.67 per cent in the same period.

    A review of the retirees on PW from inception to the end of the second quarter by gender, showed that male retirees accounted for 76.16 per cent of total retirees on PW, as against the female retirees that accounted for the balance of 23.84 per cent.

    The average monthly lump-sum withdrawal and pension payment during the quarter was N54.39 million and N54.39 million.

    Mrs. Anohu-Amazu, however, said due to increased awareness, the Commission received 1,081 requests for annuity retirement plan in the quarter.

    She saids these were approved, thus bringing the total number of retirees on this retirement plan to 4,688 at the end of the second quarter of last year.

    There are four life insurance companies authorised by the National Insurance Commission to sell annuity to retirees. They are LASACO Assurance Plc, Leadway Assurance, AIICO Insurance Plc and ARM Insurance.

  • LASACO Assurance grosses N4.4b premium income

    LASACO Assurance grosses N4.4b premium income

    LASACO Assurance Plc has recorded a premium income of N4.4 billion in its 2012 financial year, as against the N3.9 billion recorded in 2011. This represented 11 per cent growth.

    The Chairman, Ashim Oyekan, who made this known at the just-concluded 33rd Annual General Meeting (AGM) of the firm in Lagos, said the group also paid N1.3 billion claims in the year under review, indicating an increase of N448 million over what was paid in 2011.

    He explained that due to the adjustments done in line with the International Financial Reporting Standard (IFRS), the group recorded a loss before tax of N180 million in 2012, adding that the group within the period, grew its investment income by 34 per cent. He said this is a reflection of the Group’s strategic direction to leverage investment income as a key revenue source.

    “The growth from N249 million in 2011 to N334 million in 2012, is the immediate positive reflection of the efforts to restructure the company’s investment portfolio despite the difficult investment environment,’’ he said.

    “In a bid to maximise the opportunities provided by information and communication technology (ICT), the firm has initiated the move to partner Interswitch Limited to enable its customers avail themselves of services through e-commerce, including payment real time online.”

    He maintained that the firm will continue to assess its service platform to ensure it conforms to best global standards and flexible to meet customer’s expectations.

    Oyekan said the firm is poised to take advantage of the huge private investment in the power sector, adding that the overall strategy of the firm is to leverage the size and status, and channel investments into areas that will continue to ensure effective and efficient delivery of set goals.

    ‘’The huge private investments in the power sector are expected to stimulate and expand appreciably the domestic economy. The gains from this economic growth should trickle down to the common man, by increasing his purchasing power and improving his standards of living.

    ‘’We expected that the healthy economic environment thus created, will heighten awareness and the demand for insurance, while we will leverage our expertise to create insurance products that will meet all such needs. We also expect that the retail segment of the insurance market will drive our growth and open up the potentials of the company,’’ he added.

  • Goldlink settles N1.4b

    Goldlink settles N1.4b

    Goldlink Insurance Plc settled claims of N1.4 billion last year with a total of N872.5 million paid on General Insurance Business and N569.8 million on Life Business, its Managing Director,   Gbolahan Olutayo, has said.

    He said the firm’s selling point is its prompt claims settlement, adding that it is also one way of reassuring its clients and the public.

    He said to consolidate the prompt claims settlement culture, Goldlink, upon notification, keeps reserve for each and every claim immediately, adding that it also engaged the services of competent and qualified engineers and professional loss adjusters for immediate claims’investigations and handling, where necessary.

    He said to decentralise the claims-handling and administration, branch managers were authorised subject to their branch limit to issue settlement offer to their concerned clients before recourse to the Head Office, adding that it is the company’s policy to deliver claims’ settlement cheques within 48 hours of the receipt of all duly executed discharge vouchers.

    Olutayo explained that the recent restructuring of the firm’s board by the National Insurance Commission (NAICOM) has repositioned it for increased productivity within the market.

    The new board is made up of veterans and professionals in various fields whose wealth of experience has given the firm a competitive edge in the industry.

    He said the firm engaged motivated workforce and have instituted various activities that are designed to sustain staff enthusiasm and performance toward delivering its goals.

  • Anchor Insurance mulls listing on NSE

    Anchor Insurance mulls listing on NSE

    • Agents grow income by 10%

    Anchor Insurance is making plans to get listed on the Nigeria Stock Exchange (NSE), the Managing Director, Mr. Mayowa Adeduro has said.

    Adeduro, who made this known at the company’s Staff and Agents Performance Award in Lagos, said the insurance agents contributed over N200 million to its income in 2013, representing a 10 per cent contribution to the firm’s income.

    He said the agents are veritable assets in the development of insurance business in the country, adding that the company’s premium income grew to N2 billion in 2013. He said the financial performance of the company has improved in the last four years.

    He said: “The company has remained in profit and has consistently paid dividends to the shareholders.We posted a profit after tax of N420 million in 2012, as against the N56.8million achieved in 2011.

    “In addition to this, the total assets of the company increased from N4.2 billion in year 2011 to N4.52 billion in 2012, showing 7.62 per cent growth, while shareholders fund increased from N3.7 billion to N3.9 billion in the period under review, indicating 5.4 per cent growth in shareholders fund. Gross premium grew to the tune of N1.9 billion, as against N1.1 billion, indicating 73 per cent growth in income.

    “The company paid out net insurance claim to the tune of N230.5 million in the year 2012 compared to N183.6 million paid in 2011.”

    He assured that the board and management of the company is committed to sustaining this performance and will continue to ensure the provision of customer-friendly and valuable insurance products and services through the use of highly motivated workers and cutting edge technologies to deliver prompt and quality service to all its stakeholders.

    He also said it will leverage the population of Nigeria and technology to reach out to different parts of the country.

    He added that insurance is the closest thing that has been designed to reduce social vices in any nation, noting that in advanced countries, the support for insurance is high because of the existence of social insurance scheme where jobless people and old people go to access money and health care every month.

    He further said insurance enables families to pay school fees, get good health services, live a proper life and achieve all the basic social amenities of life.

  • Standard Alliance posts N2.6b profit

    Standard Alliance Insurance Plc has posted an underwriting profit of N2.6 billion in its 2012 financial result from an income of N4.9 billion, as against the N4.2 billion realised in 2011. This represents a 17.4 per cent growth in income.

    The company however, made a loss before tax of N1.9 billion, which arose from a comprehensive impairment review of its trade receivables, which rose to N2.8 billion in the period under review compared to N783 million in the preceding year.

    This entailed a 100 per cent write down of premium receivables in preparation for the “No Premium, No Cover” policy, which commenced last year, the company said.

    Its Chairman, Alhaji Aliyu Sa’ad who disclosed the result at the company’s Annual General Meeting (AGM) in Lagos, said nonetheless, the company was able to generate a gross premium of N5.3 billion compared to N4.5 billion in 2011, representing an increase of 19.5 per cent.

    He added that the firm was also able to grow its investment income, which grew to N208 million from N176 million in 2011.

    He further stated that the company still carries subsatantial retained losses although shareholders’ fund remains healthy.

    He said: “Recall that in year 2010, shareholders approved the cancellation of the unfunded shares arising from the 2008 share offer. Unfortunately, the Securities and Exchange Commission (SEC) approval required to implement this decision is still being awaited.

    “Once received and implemented, the directors intend to recommend to shareholders a restructuring of the fund components that will utilise the existing share premium account to write down the retained losses, thereby permitting the resumption of dividend payment to shareholders as early as 2014.”

    On the company’s future outlook, Sa’ad said the plans is to continuously provide the best possible service to its existing clients and capture the interest of new clients through employing an aggressive marketing strategy that would ride on the opportunities that the regulatory environment in the sector has committed to offer in the next financial year of 2013, especially with its “No premium, No cover” policy.

     

  • Union Assurance makes N4.3b premium income

    Union Assurance Plc has recorded a 12 per cent growth in its premium income as it earns N4.3 billion in its 2012 financial year, as against the N3.8 billion it earned in 2011.

    The underwriting total assets also grew from N9 billion in 2011 to N9.2 billion in 2012, while net premium income rose from N2.8 billion to N3.5 billion.

    There was an increase in its claims settlement within the period under review, recoding N955 million from N786 million. life and retail business portfolio increased by 61 per cent from N1 billion in 2011 to NN1.6 billion in 2012.

    Chairman of the firm, Mr. Emeka Emuwa made this known while speaking at the 14th Annual General Meeting (AGM) over the weekend in Lagos.

    Emuwa stated that despite the stringent regulatory changes, management is committed to pursuing strategies that will bring about optimum utilisation of resources and reducing costs.

    According to him, all agencies will be re-tooled for expanded operations and business growth.

    “We expect them to triple premium revenue over the next years and hope to consolidate our investment income to maximise results,” he said.

  • Royal Exchange appoints Mukesh Group Head

    Royal Exchange Plc has appointed Mr. Mukesh Malhotra, an Indian national, as its new Group Head, Strategy and Business Planning.

    In a statement, the Group Managing Director, Mr. Chike Mokwunye, said the appointment of Malhotra is in continuation of the company’s resolve to employ seasoned professionals who can impact positively on the fortunes of the Group and build a market-oriented organisation that would be responsive to the needs of the market and the ever-changing demands of clients.

    He added that the appointment will also enable the firm to redefine its strategic vision, develop new products and channels to meet the ever-changing needs of the consumer and also enable the Group to be a dominant player in the insurance industry and other financial services sectors.

    He said Mukesh will be responsible for developing different business strategies for the various business subsidiaries, develop new products, enhance existing products/channels and also implement the revised three year strategic plan for the organisation encompassing all the functions in the organisation.

    Malhotra is a seasoned executive with over 17 years of rich experience in the areas of finance, corporate strategy and mergers and acquisitions in companies such as BhartiAirtel, eBay, Coca Cola, Dell and Ricoh.

  • AIICO introduces e-insurance service

    AIICO Insurance Plc has introduced an online service, AIICO e-insurance, which it said will provide convenience in the purchase and renewal of insurance policies by customers.

    Its Managing Director, Mr. Edwin Igbiti said the service will also allow customers to pay premium, manage policies, request for quotes, and report claims online from the comfort of any location with internet access.

    Igbiti stressed that AIICO e-insurance has come to change the face of the insurance industry in the country, noting that the intention is to be fluid in innovation and more customer-centric.

    He said the insurance industry has become very competitive and companies are finding many ways of retaining clients and attracting new ones.

    According to him, the company which is under a new management has come up with new strategies to emerge the market leader by building and exploiting many transient competitive advantages.

  • Irukwu urges speedy passage of insurance bill

    Irukwu urges speedy passage of insurance bill

    Veteran insurance practitioner, Prof Joe Irukwu has stressed the need to fast-track the review of the Insurance Act 2003 to enhance the growth of the industry.

    Irukwu, a Senior Advocate of Nigeria (SAN), expressed disgust at the slow work on the bill at the National Assembly.

    He said when the bill is eventually passed into law, it will change the face of the industry.

    He said: “It will change the face of the industry and everybody will be better for it. I pray that the National Assembly will take the matter more seriously and try and fast-track the its passage into law. I think it will help to improve insurance awareness, consciousness and the development of the insurance industry. “

    Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Fola Daniel earlier raised hope that the industry may get a new insurance law before the end of last year.

    Giving reasons for the delay in passing the bill into law, Daniel said: “Since the review of the Insurance Act started, we have had about four different ministers and no minister will rush to take actions on the new bill without understanding the basics of the law.”

    He explained that the sector had done all that was necessary to increase sufficient understanding of the law for smooth passage.

    The commission, he added, had a retreat for committees that have oversight functions over insurance in the House of Representatives, so that when the bill gets to the parliament, it will enjoy easy and quick passage.

    He said the bill is aimed at supporting the government’s quest to reduce poverty.

    He said: “In the last three to four years, the industry has adopted developmental strategy. We believe that unless the industry is developed, it would lose its vibrancy; the regulator over time will become idle as there will be nothing to control or regulate. So, we have focused more on developing the industry.

    “The focus has been on development and that is where we are going. The law that is in the offing will support our development efforts and create jobs. One of the cardinal policies of the administration is to create jobs.”

    Daniel explained that a major condition for the development of insurance business is a strong legal system.

    He said: “The legislations are not only weak but sometimes difficult to enforce.

    The regulatory framework is ‘compliance-based’ rather than ‘frame-work’ as is the case with most advanced jurisdictions. This arrangement hardly gives the commission the capacity to take regulatory initiatives in urgent and critical situations.

    “It is, therefore, desirable that the various pieces of legislations constituting the existing legal framework should be consolidated. The Insurance Law Review Committee appointed by the Federal Government to review the existing insurance laws completed its assignment since 2010.

    “The draft revised Consolidated Insurance Bill is ready for passage to the Legislature by the Executive. Depending on the agenda of the National Assembly, the country may expect a new insurance regulatory regime before the end of 2013.”

    He noted that despite the limitations of its law, NAICOM has continued to provide leadership and roadmap for the industry in the relevant areas through issuing regulatory guidelines, circulars and letters.

  • Lagos holds pre-retirement seminar Thursday

    The Lagos State Pension Commission (LASPEC) is organising a pre-retirement seminar for about 1,200 workers, who will quit the service between January and June, this year, its Director-General, Lagos State Pension Commission, Mr. Rotimi Adekunle Hussain, has said.

    He said the event will take place at the Secretariat, Alausa on Thursday.

    According to him, the seminar organised in collaboration with the state’s approved Pension Fund Administrators (PFAs) and insurance firms, is to further broaden the knowledge of the worers on how to prepare for retirement and access their benefits under the Contributory Pension Scheme (CPS).

    He said: “The Pre-Retirement seminar programme is aimed at assisting retirees to adequately prepare for their physical, emotional and financial well-being in retirement as well as afford them the benefit of being in a better position and frame of mind to build a comfortable and rewarding life in retirement.”