Category: Insurance

Cornerstone Insurance Plc and its subsidiaries  posted a gross premium written of N17.53 billion in 2020, its Chairman, Segun Adebanji, has said.

He made this known at the firm’s 29th Annual General Meeting (AGM) in Lagos, adding that the feat represented an increase of 34 per cent over the previous year.

He noted that premium from the life insurance grew from N3.84 billion in the previous year to N5.54 billion in 2020, which accounted for 31 per cent of the gross premium written and that the largest contributors to general business gross premium written were oil; gas; & aviation; engineering and motor classes contributing N3.53 billion, N2.86 billion and N1.52 billion.

He said: “Our investment portfolios also yielded positive performance figures, driven mainly by the effect of changes in foreign exchange rates and also from sales of foreign currency denominated assets during the year. Investment and Treasury activities contributed N3.73 billion to overall revenue.’

“The gross claims ratio for the year stood at 41 per cent and has been relatively stable year on year since the company put in place stricter risk acceptance meters. He added that the firm’s net claims payment stood at N3.95 billion.”

He said though the overall ratio of claims to revenue has remained relatively stable, the effects of the Q4 2020 protests are clearly noticeable in the firm’s financial statements, as non-life gross claims incurred increased by 62 per cent, when compared with previous year and gross claims from the fire class specifically rose by 85 per cent, from N816 million in 2019 to N1.51 billion”.

Adebanji maintained that personnel and other operating costs dropped by close to seven per cent as management executed remote working protocols and other measures to safeguard staff welfare.

“Our investment in a robust nationwide technology infrastructure over the years ensured that normal operations were carried out unabated. Consequently, our group ended the year with a profit before tax of N1.76 billion,” he said.

He said the firm’s financial performance can be attributed to its focus on strengthening enterprise risk management frame works over the past few years.

The Chartered Insurance Institute of Nigeria (CIIN) has distributed 12,000 insurance textbooks to secondary schools and colleges, as it unveils the second edition of the textbook.

The textbooks were distributed to schools across the six geo-political zones of the country through the various ministries of education, since it was launched.

President/Chairman of Council, CIIN, Mr. Muftau Oyegunle, at the event in Lagos, said tertiary institutions offering insurance in Nigeria, Cameroon and The Gambia also received two sets of CIIN course books to support and encourage the student members of the Institute for their professional examinations.

He said: “We have domesticated all our insurance textbooks but we still maintain a very healthy relationship with the Insurance Institute of London because insurance is a global business.”

On the importance of insurance to the economy, he said: “Insurance helps the economy to grow. It is a business that builds national wealth. A business that helps people to beat poverty. Insurance is in the interest of our future. It is our collective responsibility to take insurance to the level of higher percentage of penetration like what obtains in other countries.’’

SUNU Assurances Nigeria Plc has posted a Profit Before Taxation of N313.41 million during the year under review, compared to a loss before taxation of N188 million in 2019, despite the effects of COVID -19 pandemic.

The Group also recorded a growth in its gross written premium from N3.060 billion in 2019 to N4.209 billion in 2020, despite the effects of the pandemic.

This represented growth of N1.149 billion in value and 37.5 per cent in percentage terms and the growth was due to the group’s strategic decisions on revenue generation.

The net claims incurred for the Group increased by 14 per cent from N658 million in 2019 to N752 million in 2020.

However, the underwriting profit grew by 38 per cent from N1.189 billion in 2019 to N1.636 billion in 2020. This was due to 34 per cent increase in total underwriting income from N2.429 billion in 2019 to N3.246 billion in 2020.

The group expenses for 2020 totalled N1.846 billion, which was 3.5 per cent decrease when compared to 2019 figure of N1.913 billion. This decrease was as a result of the group’s strategy to improve its efficiency using information technology.

The investment income for the year amounted to N345.58 million, a decrease of 52 per cent over 2019 figure of N719.53 million. This was attributed to the fall in investment rate on placements held with financial institutions and FGN Securities in most part of 2020 financial year when compared to 2019.

The Chairman, Kyari Abba Bukar, said at the 34th Annual General Meeting (AGM) of the company in Lagos, that the group had returned to profitability.

He said the company has proceeded with its plan to raise capital, noting that the Board of Directors mandated SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA to pay-off the holders of the JPY1,350,000,000 Zero Coupon Bonds 2026 issued by the company for USD$7,800,00, representing the outstanding indebtedness to the bondholders by the company as at December 31, 2019.

He explained that upon the repayment of the debt, the total refinancing amount which was converted to equity through the allotment of ordinary shares to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was agreed at N3,010,800,000.00 ($USD7,800,000 converted to Naira at N386/USD$1 using the exchange rate at I&E window at the date of the consummation of the transaction).

He said: “The issuance of 3,010,800,000 ordinary shares of 50 kobo each at N1 per share by way of private placement to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was completed with the regulatory approvals received from NAICOM, SEC, Federal High Court, NSE, CSCS, CAC and FRCN.

“The shareholders fund increased from N3.66 billion as at 31st December, 2020 to N6.67 billion as the date of the AGM. It is expected that the second stage of the raising of additional capital by way of Rights Issue of N3.5 billion would commence in July 2021 and would be completed by 30th September, 2021.”, he added.

Lagos State Governor, Mr. Babajide Sanwo-Olu has urged the insurers to float products for Micro, Small and Medium Enterprises (MSMEs)

Speaking at the workshop for MSMEs on insurance for their businesses organised by National Insurance Commission (NAICOM), Sanwo-Olu noted that products should be designed to meet the needs and address the peculiarities of MSMEs.

The governor, represented by the Commissioner for Finance, Dr Rabiu Olowo, said there should be specially designed products that will meet their categories, income, operations and processes.

He stated that such policies must be affordable and free of technicality so that they would be easily understood with assurance of claims’ prompt settlement.

He noted that securing cover against unforeseen situations and losses that may threaten the growing concerns of operations must therefore be encouraged, particularly for MSMEs giving their vulnerability and likely impact on the prospect of our larger economy.

He urged MSMEs to embrace insurance as a safety net against losses they may suffer as a result of unforeseen circumstances.

The Commissioner for Insurance, My Sunday Thomas, assured of prompt claims settlement to MSMEs.

NAICOM is committed to our mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs, he noted.

By Omobola Tolu-Kusimo

FBN General Insurance Limited, has recorded a Profit Before Tax (PBT) of N2.17 billion in its 2020 financial year, representing a  growth of 196 per cent compared to the N733.2 million it made during the same period the previous year.

Analysis of the company’s report showed that the company also closed the year with a Gross Premium Written (GPW) of N8 billion. This was a year-on-year growth rate of nine per cent relative to the N7.32 billion realised during the corresponding period of 2019.

Also, the company’s capital position improved significantly as the total equity grew by 51 per cent year-on-year to N8.80 billion from N5.82 billion reported in the 2019 financial year.

The company attributed the growth to excellent business performance in the year 2020 and the injection of additional capital of N1.048 billion which invariably brings its paid-up capital to N5 billion

Presenting the 2020 Annual Report to shareholders at its Annual General Meeting (AGM) in Lagos, the Managing Director/Chief Executive Officer, FBN General Insurance Limited, Bode Opadokun, said the growth in  equity is a reflection of the steps the company is taking to meet the National Insurance Commission’s (NAICOM’s) minimum capital requirements.

On the outlook of the company, Opadokun said FBN General Insurance would sustain the deepening of its digital capabilities and utilise technology as a business enabler to ensure that the company’s service delivery continues to meet and exceed customer expectations.

By Omobola Tolu-Kusimo

Consolidated Hallmark Insurance (CHI) Plc is committed to grooming of talents for the industry, its Group Managing Director, Mr. Eddie Efekoha has said.

He said the company is achieving this through its yearly Essay Awards for Tertiary Institutions.

Speaking during the presentation of awards to winners at the 10th edition of the competition in Lagos, Efekhoa expressed delight that the contest had clocked a decade, and making  an impact on the industry.

He maintained that the company has continued to execute the programme, for the industry as some of the previous winners have been employed and creating value for their respective organisations.

The Overall Best and First Prize Winner is Miss Olatunji Rebecca of Joseph Ayo Babalola University. She is followed by Mr. Obikwere Victor from Imo State University (2nd Prize), and Miss Oyefejo Olaseni from Lagos State Polytechnic finishing third place.

Director-General, Nigerian Insurers Association (NIA), Mrs. Yetunde Ilori, urged the winners to make the achievement the least they would attain in life.

She commended the management and staff of CHI Plc for being a source of inspiration and creating the platform for students to embark on research and express themselves through the contest.

The Chairperson of the Essay Awards Committee, Mrs. Oladotun Adeogun stated that the contest received a total number of 24 entries from Insurance or Actuarial Scienc students of tertiary institutions in 300 level or HND 1.

By Omobola Tolu-Kusimo

LASACO Assurance Plc has paid Group Life Insurance benefits of N365 million to the beneficiaries of 159 deceased workers of the Lagos State Government.

The late workers were with the State Universal Basic Education Board (SUBEB) and Local Governments in Lagos State.

The Commissioner for Local Government and Community Affairs, Wale Ahmed, while presenting the cheques at the Ministry of Local Government and Community Affairs, in Alausa, Ikeja to families of the deceased, stated that the governmnent cares for the living and the dead.

Ahmed, who was represented by the Permanent Secretary, Morenike Sanyaolu, said the government has shown priority to the welfare of its staff.

He appealed to the beneficiaries to ensure that the money was judiciously used to take care of the children of the deceased to become responsible in the society.”

The Managing Director, LASACO Assurance, Razzaq Abiodun, said the state government had been committed to paying premiums promptly.

He added that the disbursement of the money to the beneficiaries had been possible because the state government had remained consistent in the payment of premiums.

Abiodun noted that the underwriting firm  had, over the years,  continued to be prompt and responsible in paying the benefits to the beneficiaries of deceased workers, adding that it had paid over N3 billion to beneficiaries.

He said the programme had been on since 2009 and was done twice  yearly.

“This is the first tranche in the year. We expect the second one in either September or October all things being equal,’’ he said.

By Omobola Tolu-Kusimo

Until the public understands  the role of brokers, the allegation of non-payment of claims and other consequential image challenges would remain, the President, Nigerian Council of Registered Insurance Brokers (NCRIB) Dr. Bola Onigbogi, has said.

She spoke at the Council’s Member’s Evening hosted by Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA) in Lagos.

She stated that she would ensure that the Council becomes an indispensable entity in the industry’s value chain.

She said: “We are not relenting on our oars; we will still forge ahead and ensure that no insurance policy will be placed without the input of an insurance broker.

“I am convinced beyond limit that until the public understand fully the roles of brokers, the allegation of nonpayment of claims and other consequential image challenges in the industry would remain.’’

The Acting Managing Director, Dr. Adaobi Nwakuche, Heirs Insurance described NCRIB as an important stakeholder in insurance.

The Managing Director, Heirs Life Assurance, Niyi Onifade, introduced some of the products the company is bringing to the market. They include its savings and investment products, term life and group life plans for employees.

By Omobola Tolu-Kusimo

Nigeria ranks fifth among nine insurance markets in Africa in terms of premiums in 2020, but came in last in terms of insurance penetration, according to the report by Sigma from Swiss Re.

The countries are Egypt, Algeria, Morocco, Tunisia, Ghana, Ivory Coast, Kenya, Nigeria and South Africa.

Nigeria also showed the biggest decline in premium volume in 2020,  compared with the previous year, with an inflation-adjusted negative growth rate of 14.8 per cent.

Meanwhile, to further deepen insurance penetration and develop the insurance sector, the Federal Government, through the Ministry of Finance, would be meeting with  operators to work out plans for provision of insurance for all assets of government.

The Head, Publicity Sub-Committee of the Insurers’ Committee and Managing Director, NSIA Insurance Limited, Mrs. Ebelechukwu Nwachukwu, said this at a briefing  after the Committee meeting in Lagos.

She said the Federal Government had expressed its willingness to insure all its assets, stressing that insurance operators would be having a meeting with the Ministry of Finance to work out premium payment for the assets.

She noted that the insurance sector operators are excited over government’s concern to insure all its assets.