Category: Insurance

Coronation Insurance Plc’s performance in the last three years remains poor and challenged.

The Group, in its Audited Financial Results for the 2021, obtained from the Nigerian Exchange Limited, posted a loss of N2.11 billion.

It closed 2020 with an operating loss of N172 million. This is an improvement of 83.4 per cent when compared to the 2019 loss position of N1.04 billion.

The company’s Gross Written Premium (GWP) declined to N14.13 billion in 2021 compared to the N16.18 billion it recorded in 2020.

Gross Premium Income (GPI) also went downward from N17.29 billion in 2020 to N14.13 billion.

Despite recording a decrease in GWP and GPI, the company’s management expenses increased from N5.18 billion in 2020 to N5.97 billion in 2021 while total operating expenses also rose from N5.42 billion to N6.42 billion.

Net underwriting income stood at N9.66 billion in 2021 from N9.46 billion in 2020 while Total Underwriting Expenses dipped from N3.29 billion in 2020 to N1.24 billion in 2021.

The company however, paid claims of N5.24 billion in 2021, higher than the N3.74 billion paid in 2020, even as it recorded movements in Outstanding Claims of N2.06 billion.

The Auditor, Ernst & Young in its report signed by Oluwasayo Elumaro on July 29, 2022 stated that the Group has material insurance contract liabilities from both Life and non-Life businesses of N13.6 billion representing 75 per cent of total liabilities of the Group and N9.174 billion representing 74 per cent of the total liabilities for the Company.

Ernst & Young said this is an area that involves significant judgment over uncertain future outcomes and therefore they considered it a key audit matter for their audit.

The Auditor further revealed that the Group incurred penalties in respect of contraventions of the requirement of certain sections of the National Insurance Commission’s Operational Guideline 2015, Securities and Exchange Commission and the Nigerian Exchange Limited during the 2021 financial year.

Stating the Group’s financial position in 2020 and 2019, the former Managing Director of Coronation Insurance Plc, Mrs. Adeyinka Adekoya said: “Our Group’s GWP increased by 6.4 per cent from N15.2 billion in 2019 to N16.1 billion in 2020 despite a slight reduction in the underwriting profit margin for the year (14.79 per cent) compared with 2019 (16.64 per cent); a decrease of about 2 per cent.

“Claims incurred for period grew by 122.45 per cent; up from N2.23 billion in 2019 to N4.95 billion in 2020. This was driven largely by claims associated with the vandalism of our customer properties during the “ENDSARs” protest in October 2020.

“Consequently, the Group closed the period with an operating loss of N172 million. However, this is an improvement of 83.4 per cent when compared to the 2019 loss position of N1.04 billion.

“Your company on the other hand, delivered an operating profit of N115 million, a significant improvement from last year’s loss position of N533 million. At the end of 2020, PBT stood at N1.1 billion, a slight increase of N23 million when comparted to the prior year’s position. Total assets and Shareholders’ Funds closed at N39.7 billion and N24.9 billion in 2020, representing a 29 per cent and 35 per cent year-on-year growth as at year end.

“Throughout 2020, we maintained a regulatory solvency margin ratio of 313 per cent which is above the minimum regulatory solvency margin requirement of 100 per cent. This is attributable to the growth in total admissible assets as a result of fund inflows from the rights issue invested in financial assets”, she disclosed.

Coronation Insurance’s current Managing Director is Olamide Olajolo and he was appointed on June 17, last year.

The National Health Insurance Authority (NHIA) has reiterated that the NHIA Act 2022 did not mandate a 15 per cent deduction from monthly salaries as health tax.

Its Director-General, Prof. Mohammed Sambo who spoke with reporters in Lagos, said denied that he said so.

Sambo was reacting to newreports, which states that the Federal Government, employers and employees would be mandated to contribute 15 per cent of their salaries to the new National Health Insurance Authority (NHIA) scheme.

Sambo said he has dissected the issue and sources of funding of the 83 million vulnerable Nigerians targeted for health insurance inclusion.

He said there was no part of the NHIA Act that has conveyed a mandatory 15 per cent health tax on salaries, describing the report as lies promoted by unscrupulous elements in the healthcare system to destabilise the new Act put in place to bring about an unprecedented reform in the nation’s healthcare delivery system.

He said: “I have dissected all the contents of the Act to journalists and there was nowhere I mentioned 15 per cent. You have received that report. Am I the one that will interpret the content of the Act or is it somebody from the back side that will come and interpret the Act? So, why is somebody trying to put something that is not there? That’s my question. I have convened a very comprehensive meeting with all the media representatives.

“And I had taken time to explain the contents of the new law. I did not mention anything about 15 percent. There used to be 15 per cent before salary was consolidated and ever since salary was consolidated in 2004 nobody has been talking about 15 percent.

“I have met with service providers. I have met with international partners, Health Maintenance Organisation (HMOs). I have met with Chief Medical Director (CMDs) and medical directors stating the mechanisms of dissemination of information. So, if I am doing this, I should be allowed to complete the cycle of disseminating information.

“In any case, you go and read it. It is not even an executive law, it is legislative. In fact, you can even go and ask the people that passed that law. I have explained it time and time to the media. My Legal Department has gone through every portion of the Act and we have disseminated it. Why are you so bothered about 15 per cent? Is there any mention of 15 per cent?

“In fact, there was nothing to change as per the contribution of workers as a result of this. No. The contribution remains constant.

“The five per cent we are getting is the five per cent of consolidated revenue, being a consolidated salary of a worker coming to us. So, nobody is talking about a 15 per cent of health tax on workers’ salaries.’’

Bitcoin advocate, Paco De La India, has encouraged the use of Bitcoin for transactions.

The Bitcoiner, who has toured 40 countries in 400 days in a ‘Run with Bitcoin Tour”, has through Paxful, introduced Nigerians to the world of Bitcoin.

Paco hosted community meet-ups in three major cities across the country, beginning with Lagos. The others are Kaduna and Abuja.

Paxful enabled the company to discuss the use cases of Bitcoin through community engagement to empower users to attain financial freedom.

CEO/founder of Paxful, Ray Youssef, said the events enabled his team to show people how they can maximise Bitcoin’s potential. He said: “The first step to global Bitcoin adoption is education. Paco’s tour echoes Paxful’s mission to educate the community on what Bitcoin can really do. Through these community events, we will continue to inspire and deepen adoption of Bitcoin across this special country.”

Paco said he was  glad  by Nigerians’ interest in Bitcoin. He said: “We had a great turnout at our first event in Lagos. It’s exciting to see the enthusiasm and positivity of the people — it’s clear that Nigeria is truly the Giant of Africa when it comes to adoption. Whether they are new to Bitcoin or are seasoned traders, they are eager to learn more about what Bitcoin can do while meeting people with similar interests.”

Paco challenged Nigerians on the use Bitcoin for transactions while connecting with other Bitcoiners. Later, Paco headed for Cameroon, Central Africa, South Sudan, and Ethiopia.

Aside Nigeria, which is the 17th country he has toured, Paco has also visited India, UAE, Thailand, Kenya, Uganda, and Rwanda.

Paco also aims to gather and connect African Bitcoiners for the first African Bitcoin Conference at the end of his tour.

A new micro insurance firm, Lifeguard Micro Insurance Limited has made its debut in Lagos with a promise to capture over one million low-income earners and the grassroots in the next one year.

The company was licensed by the National Insurance Commission (NAICOM) as a composite micro-insurance company licensed to underwrite cheap and affordable insurance products for the protection of low-income people against specific perils in exchange for regular premium payments proportionate to the livelihood and cost of the risk involved.

The Managing Director/CEO, Lifeguard Micro Insurance, Mrs. Yinka Oyekunle, at a briefing on its forthcoming launch of the company in Ikeja, Lagos.

She stated that the company was incorporated in November 2020 as a private limited liability company and licensed as a standalone company in June to commence operations as part of the Commission’s effort to deepen financial inclusion and increase insurance penetration .

She said they would be providing life and non-life insurance businesses at a very low cost.

Mrs. Oyekunle explained that the life business products include Supermamas and Superheroes; Family Umbrella; Credit Microloan Protection while the non –life products include Legacy Householder Cover; E Go Beta Cover (Esusu); and Wheeler Keke Cover.

She noted that premiums could be paid either by cash or into the company’s account.

She said: “Our service delivery and claim settlement process are seamless and would be our selling point.

“Our target market at Lifeguard are the unprotected and the underserved population who are highly vulnerable and often overlooked by the conventional insurance operators. We are of the opinion that these categories of the population require protection by the nature of their limited economic strength.

“They include Small and Medium Scale enterprises, educational institutions, artisans, trade unions, clubs and societies, alumni associations, security companies, microfinance banks to mention but a few.

The Chairman, Mr. Odion Ellis Aideloje, said they aim to be the first choice of Microinsurance company in Lagos State by providing satisfactory microinsurance products to low-income earners and insure every-home through competent and highly motivated professionals,

The total premium transferred to insurance companies from inception of the Contributory Pension Scheme (CPS) to last December 31 stood at N524.55 billion, the National Pension Commission (PenCom), has said.

PenCom in a report obtained stated that N29.35 billion was paid to 9,220 retirees who opted for life annuity received as lump sum in 2021.

Similarly, N60.02 billion was paid as premium to insurance companies in exchange for monthly annuity receipts of N610 million.

PenCom stated that the total number of retirees on annuity increased from 83,568 in 2020 to 92,788 as at last December 31.

A breakdown of the total number of retirees showed that the Federal Government retirees accounted for 51,976 or 56.02 per cent, the state government retirees accounted for 11,320 or 12.20 per cent; and private sector retirees accounted for 29,492 or 31.78 per cent.

Furthermore, the cumulative monthly annuity being received by retirees from inception to 31 December 2021 stood at N5.23 billion, after the receipt of cumulative lump sum of N156.97 billion, the commission added.

THE Nigerian subsidiary of pan-African insurance firm, Old Mutual Limited (OML) has launched an online platform for brokers in Lagos.

Its Managing Director, Olalekan Oyinlade, said the platform is targeted at increasing the accessibility of its solutions.

He stated the brokers are one of the most critical stakeholder groups in the sector.

He also said the platform will ensure online service delivery to brokers, adding that it is seamless.

He said: “The platform serves the end-to-end purpose of allowing brokers to request and review quotes, achieve transactions for the received quotes, and generate the policy certificate as well as initiate claims and monitor claims payments in a few clicks.

“With the platform, brokers can market Old Mutual’s Life Insurance policies, such as Group Life and Credit Life policies and other General Insurance Policies such as motor, fire, burglary and marine insurance policies. In addition, brokers can lodge claims for all products’ life and general insurance policies with the required documentation to allow for a seamless, end-to-end interaction on the platform.

“To make payments, brokers who have independently registered on the platform can leverage the robust payment solutions provided by Paystack, one of the globally acclaimed payment merchants in Africa.”

Also commenting, the Managing Director, Old Mutual Life Assurance limited, Olusegun Omosehin, said they believe the platform is timely for Nigeria as there was a need to further deepen insurance penetration to allow more Nigerians access to insurance policies across every facet of their lives.

“It also re-enforces our promise as Old Mutual of being a certain friend in certain times,” he noted.

The Nigerian subsidiary of Old Mutual Limited (OML) has launched an Education Protection Plan (EPP or EduSure) that assists parents and guardians in secure learning for their children or wards.

The company said EduSure helps parents and guardians to save for the education of their children/wards, while Old Mutual provides assurance of meeting the goal in case of the policyholder’s death.

In a statement, the Managing Director, Old Mutual Life Assurance Limited, Olusegun Omosehin, stated that an investment in an education plan is the best way of ensuring your child gets the best education without hassles.

“With our Education Protection Plan, parents/guardians are guaranteed that their children/wards can achieve the future they desire by simply setting aside a target amount for their future educational goals,” he noted.

Also, the Head, Marketing and Customer Experience, Old Mutual Nigeria, Alero Ladipo, said: “The launch of the Old Mutual EPP is significant, coming at a time the World Bank estimates that Nigeria has 11 million children out of school. Research has also shown that a very considerable portion of this population is children who were constrained to drop out of school due to the reversal of economic realities following the death of a breadwinning parent. We know that death is a reality for any living being, but we now have the financial tools that insulate the children from the impact of death on their future education.”

The Secretary to the Government of the Federation (SGF), Boss Mustapha, has called for the decentralisation of insurance premium among the Ministries, Departments and Agencies (MDAs).

Mustapha made the call when the governing board of the National Insurance Commission (NAICOM) visited him in Abuja.

The SGF, who was represented by the Permanent Secretary in the General Services Office (GSO), Dr. Maurice Mbaeri, said there should be an increase in the allocation for insuring public assets.

He urged NAICOM to “write for the decentralisation of insurance premium among the MDAs”. Learning that the premium to be paid for insuring public assets was centralised in the Office of the Head of the Civil Service of the Federation (HoS),

Mbaeri said: “There is no way the HoS alone can cover insurance premium for all the MDAs.”

He noted that the Federal Government would issue a circular ordering MDAs to insure government assets.

He urged the NAICOM team to up with  a draft of what they wanted the circular to contain to guide the SGF to properly articulate the circular.

He said: “Send a draft copy of the circular to the Office of the SGF. After a review, the circular will be released to the MDAs.”

He also told the NAICOM team that “the draft circular should reflect what you want: If it meets the SGF’s expectations, it will be issued.

The Chairman, NAICOM’s Governing Board, Dr. Abubarkar Sani, sought the SGF’s support for executing a compulsory insurance scheme for MDAs.

“The commission is interested in seeing government assets insured and we want the SGF to issue a circular or letter to all MDAs on the necessity of compulsory insurance,” he added.

Leadway Health has launched its telemedicine feature for better access to healthcare.

Managing Director/Chief Executive Officer, Leadway Health Limited, Dr. Tokunbo Alli, stated that the feature on the Leadway Health App is available for downlo on the iOS App Store and Google Play Store, adding that it provides real-time, convenient access and delivery of healthcare via customers’ mobile phones.

He said the feature fulfils the organisation’s pledge to proffer solutions that address the challenges of accessing healthcare.

He said: “Understanding that the exponential growth in mobile telephony and increased internet connectivity have significantly empowered millions of Nigerians to make life-changing decisions that have impacted their living conditions, we elected to leverage this game-changing technology and innovations to provide unprecedented access to healthcare across the country.

“With the advanced feature of our Telemedicine service, enrollees would have the experience of end-to-end healthcare solutions in the comfort of their home. They are able to consult with medical professionals via video/voice call and resolve minor medical issues.

“The medical professionals also have access to their previous medical records to help in providing even better care. By leveraging this technology, minor health issues that otherwise would have become chronic can be promptly diagnosed and resolved virtually, at no cost to the enrollee