By Omobola Tolu-Kusimo

In spite of the coronavirus pandemic that defined the course of so many economies around the globe with Nigeria not being an exception, we remained on the part of growth as evident in our Annual Report and Accounts for 2020 Financial Year. This was achieved mainly due to the support at the Board level in addition to the consistent and dutiful work put in place by the Management and members of staff.

The resilience of our business model and strategy has enabled us to successfully weather the economic headwinds precipitated by the pandemic.

The drive to continue to uphold comprehensive growth strategy still forms the background upon which our company is built despite the harsh operating environment caused by the novel coronavirus disease (COVID-19) and the attendant economic and social challenges that characterised the industry within the year.

To this end, our organisation was able to record a Gross Premium Written of N11.12 billion in 2020 as against N10.8 billion in 2019. The Net Premium Income grew by 10 per cent from N5.9 billion in 2019 to N6.5 billion in 2020. Our net underwriting income grew by 9.7 per cent from N6.9 billion in 2019 to N7.6 billion in 2020. This performance resulted in a Profit Before Tax of N796 million and a Profit after Tax of N688 million in 2020, a 37 per cent increase when compared with N503 million recorded in 2019.

The size and quality of our balance sheet improved as the company’s total assets increased from N13.4 billion in 2019 to N14.8 billion in 2020 representing 10.5 per cent growth. Similarly, our earning per share also improved by 33.3 per cent from 6kobo in 2019 to 8kobo in 2020. The composition of our assets is well structured to position the company for better future performance.

Furthermore, I am delighted to report that the Return on Capital Employed (ROCE) of the company recorded a positive performance of 8.1 per cent in 2020 as against 5.6 per cent achieved in the corresponding year of 2019, while our investment and other income rose by 27 per cent from N468 million in 2019 to N622 million in 2020.

By no means, it was a very tough year for many businesses, but the fundamentals of our company are strong, and this is buttressed by our capacity to remain profitable despite the harsh economic conditions prevailing in the operating environment.

With this result, we remain a profitable brand. We will continue to re-engineer our strategy in line with current realities and as businesses globally are recovering and putting in place required investments to pull through, we will not rest on our oars but continue to improve on our performance.

 

Capitalisation

Having successfully raised N1.4 billion in 2019, which grew our paid-up capital to N5.68 billion, we are now set to pursue our recapitalisation drive in order to achieve our objective of having a paid-up capital of N10 billion. To this end, we will be carrying out a special placement in the nearest future.

 

Future Outlook

While it is estimated that the global economy will resume its growth in the year, it is anticipated that Nigeria will experience very modest growth with the IMF forecasting 1.7 per cent for the country. Innovation and efficiency gains will be the key pillars on which to improve our performance. We expect that 2021 will continue in the strides we made in our digital initiatives as our technology platforms and products continue to contribute to our performance and competitiveness. We also expect our cost optimisation initiatives to continue.

We will remain resilient and innovative in charting new avenues for growth. We will also remain committed to delivering value to all our stakeholders in spite of the numerous social, economic, and environmental challenges faced by the communities we serve. We have been able to survive the rough tide through appropriate strategies built on financial discipline and unwavering support of all our stakeholders. Our continuous effort to further capitalise the company, is considered a veritable exercise that will improve our underwriting capacity and subsequently lead to improved profitability.

There is no gainsaying the fact that 2020 remains unprecedented and has been traumatic as people and businesses across the globe continue to grapple with the effects of the pandemic and the associated recession. STI remain committed to its stakeholders, customers, and the nation’s future, as we continue to provide the required support and services in overcoming the challenges of the pandemic while we strive to achieve a sustainable and inclusive recovery.

Sovereign Trust Insurance Plc commenced business in January 1995 following the restructuring and recapitalisation of the then Grand Union Assurances Limited. We operate through a network of branches nationwide with our Head Office on 17, Adetokunbo Ademola Street, VI, Lagos. The company is licensed as an insurer by the Federal Government with authority to underwrite all classes of non-life business.

It is the intention of the company to be a highly professional organisation providing unique risk management services as well as improved claims settlement procedure among others.

To achieve these objectives, we have assembled a vibrant and purposeful management team made up of highly experienced and result-oriented professionals who are fully poised and determined to contribute meaningfully towards the upliftment of insurance practice in Nigeria. We are also fully computerised and maintain a good cash reserve for claims settlement.

By Omobola Tolu-Kusimo

Leadway Assurance Company Limited, one of Nigeria’s foremost insurance companies, with a reputation for service efficiency and customers’ reliability, is blazing a trail in the field of insurance business.

Leadway was established in 1970 and commenced business in 1971. It started out as a direct Motor Insurer with a passion for customer service. The business expanded into other areas of general business until it became a composite company underwriting both life and general insurance business. From a modest capital base, the company’s financial capacity grew over time and now, it can boast of an ability to underwrite risks of very high magnitude as regards heavy industries, such as Oil and Gas and big manufacturing concerns. It also offers subsidiary financial services like Bond, Secured Credit, Miscellaneous financial losses and Fund/Portfolio management. At present, it is an active player in providing good local security under the local content arrangement of the Oil and Gas Industry.

For over five decades, LEADWAY has honoured its underwriting commitments and has earned its reputation of excellence in claims handling. The reputation enjoyed today by LEADWAY has been attained by the continuing pursuit of improvements, as regards its financial, underwriting and service profiles. The evolution of LEADWAY since 1970 has mirrored the dramatic expansion of indigenous insurance service providers, with LEADWAY remaining in the forefront as an insurer of repute. Our core values are iSCORE meaning; integrity, service, costumer-focus, Openness, respect-for-the-individual and excellence. The reputation enjoyed by LEADWAY has been attained by the continuing pursuit of improvements to maintain competitive advantage.

At present, LEADWAY has a shareholder’s fund of N67 billion. To reposition and take advantage of opportunities in the changing environment, LEADWAY has a policy of increasing its paid-up capital steadily. Over the years, the company has recorded steady growth in its business operations. As at December 31, 2020, the company had a total asset base of over N523 billion and a premium income of about N54 billion. It has no loan stock and internally generates funds for capital projects. The company holds a sizeable number of blue-chip stocks spread across banking, insurance, manufacturing, finance, among others. Its total investment portfolio as at December 31, 2020 was N453 billion.

Within the money market, it has an average of N54 billion deposit placement in investment grade rated banks. Leadway also has a remarkable claim paid record of over N165 billion claims paid in five years, with N43.5 billion paid in 2020 alone, one of the highest figures of claims paid in the industry.

LEADWAY is aware of its customers’ financial security. It ensures that its insurance risks are carefully backed up with world-class reinsurance arrangements. For over two decades, the company has maintained a good business relationship with Swiss Reinsurance Company and Munich Reinsurance Company. These two widely known international reinsurance companies lead on the company’s major treaties.

Other participating companies are Africa Reinsurance Corporation, Continental Reinsurance Company Limited, GIC Reinsurance and Scor Reinsurance Company Limited

The company has a highly computerised work environment with major offices on-line. This enables a timely dissemination of information to clients on any risk assumed. The company’s decision to invest heavily on computerisation is part of its corporate strategy to take advantage of the benefits offered by technology as a service enhancement tool and the company’s preparedness to follow the trails of e-commerce into the next century.

LEADWAY’s Registered and Corporate Offices are located in Kaduna and Lagos with 24 branches spread all over the country.

Gen. Martin Luther Agwai (rtd) is the Chairman of the Board of Directors while Mr. Tunde Hassan-Odukale is the Managing Director of the company.

For more information about our products and services, please call us on +234 1 2700700, email insure@leadway.com or visit www.leadway.com.

By Omobola Tolu-Kusimo

Of the estimated 13 million vehicles in Nigeria, only  2,939,767 third party motor policies are in force as at April 26, this year, the Chairman, Nigeria Insurers Association (NIA), Mr. Ganiyu Musa, has said.

He said the stakeholders were unhappy about the development and its loss to racketeers and non-insurance of vehicles.

Musa, who spoke with reporters in Lagos, said the association had engaged five states.

Musa, who is also the Group Managing Director/Chief Executive Officer (CEO) of Cornerstone Insurance Plc, believes this will further increase premium income.

He added that they had engaged the Lagos State government on the enforcement of motor insurance through their licensing offices.

Similarly, he said there were ongoing discussions with Kaduna, Niger, Kogi and Ogun states to ensure motorists got genuine insurance cover at the point of renewing their vehicle particulars at licensing offices across the states.

He said: “We are also working  with the state vehicle inspection service on the enforcement of third party motor insurance in the state. We are engaging Niger, Kaduna, Kogi and Ogun states, and remain hopeful that other states will see value in the platform and embrace it.

“The association is also partnering the Federal Roads Safety Corps (FRSC) and the Police to give them access to the Nigerian Insurance Industry Portal(NIIP), such that, when a vehicle is apprehended, they can assess whether such vehicle carries fake or genuine insurance certificates,” he added.

 

By Omobola Tolu-Kusimo

Niger Insurance Plc paid N1.15 billion claims to policyholders between last year and this year, its Managing Director, Edwin Igbiti, has said.

Igbiti made this known to reporters in Lagos, while reacting to the publication by The Nation on the expulsion of some insurers by the Nigerian Insurers Association (NIA), on the allegation that they failed to meet their obligations to policyholders.

He noted that the company is working on liquidating some of its real estate assets to further alleviate the plight of its policyholders.

He promised that his firm will not relent in meeting customers’ expectations.

He said: “In addition to meeting commitment to our policyholders, we have created customer engagement forum to address customers’ complaints, which has been very effective in addressing concerns and enquires, especially, in the present status of the company and management initiatives.

“Our traction and achieved milestones were also communicated at various conferences and media parley held by the company. We remain responsible and committed corporate organisation. We assure the insuring public and all stakeholders that we will ensure all obligations, especially in the area of claims payments are met to the extent of our established liabilities and provision of insurance practices,” he added.

By Omobola Tolu-Kusimo

Despite the challenges in the 2020 financial year, NEM Insurance Plc has posted N5.08 billion Profit After Tax (PAT), a 113 per cent increase over that of 2019, which was N2.4 billion.

The underwriting firm generated a gross premium of N22 billion as against N19.8 billion it generated in the preceding year, which represented a 12 per cent increase.

A net premium earned of N15.8 billion was also recorded during the period under review and 25 per cent increase over the preceding year, which recorded N12.6 billion.

Though the interest rate in commercial paper crashed, the company management was proactive enough to take the advantage of other investment opportunities to generate income on investment of N1.004 billion as against N878.2 million generated in 2019. This resulted in increase of about 14.3 per cent.

While a gross claim of N8.4 billion was incurred last year, that of 2019 was N7.3 billion, an increase of 15 per cent.

Similarly, the net claims expenses of N6.05 billion incurred in 2020 was 53 per cent higher than that of the preceding period, which recorded N3.9 billion. The net claims ratio for the period under review stood at 27 per cent as against that of 2019 that was 21 per cent.

NEM Chairman, Dr. Fidelis Ayebae, who spoke at the company’s 51st Annual General Meeting  in Lagos, said the company’s performance has remained consistent with an upward progression.

He said the Board is recommending a dividend of 9 kobo per ordinary share.

Speaking further on the company’s performance on financial assets, total assets and equities, there were increases of N5.9 billion, N5.5 billion and N4.2 billion in the Group’s financial assets, total assets and total equity.

Also, the parent company had increases of N5.9 billion; N5.5 billion and N4.3 billion in financial assets, total assets and total equities.

On Earnings per Share (EPS), Ayebae said the Group’s EPS for the year under review was 0.96 kobo while that of the previous year was 45 kobo.

The Group Managing Director, Mr Tope Smart, said in the beginning  of 2020, global economy had just recorded its 10th straight uninterrupted growth and economists had expected this trend to continue for years ahead, but within two months those expectations were shattered due to the novel corona virus that was first discovered in China in December 2019.

He said: “This led to the steepest global recession in generations. The International Monetary Fund’s (IMF) estimates the global economy to have contracted by 4.4 per cent in  2020 compared with a contraction of just 0.1 per cent in 2009, when the world last faced a financial crisis.  To contain the spread of the virus, governments across the globe introduced various measures such as lockdowns which further worsened the already bad economic situation.

“On the local scene, though the economy contracted by 1.92 per cent at the end of year 2020 compared with the 2.27 per cent growth in 2019, Nigeria was able to exit recession against all expectations.  The GDP grew by 0.11 per cent in the fourth quarter of year 2020. While the economy contracted by 6.1 per cent and 3.6 per cent in second quarter and third quarter, a growth of 0.11 per cent was, however, recorded in the fourth quarter signalling a rebound.

“Despite the difficult terrains, our company showed resilience and we were able to post impressive results.”

By Omobola Tolu-Kusimo

Insurers have been urged to mitigate risks arising from COVID-19 pandemic.

The Chairman, Energy Institute, Osten Olorunsola, made the call during the inauguration of the Nigerian Insurance Association (NIA) Chairman, Mr. Ganiyu Musa.

Olorunsola, who was the chairman of the event, said the changes in livelihood and businesses also affected industry.

Olorunsola, who is the Chairman, Energy Institute, hoped the industry would not only respond to the challenges, but also anticipate and mitigate possible ones.

He said: “This is a time the world we live in took an unprecedented turn a little over a year ago when COVID-19 sneaked in like a thief in the night. It came like a simple flu. Before we knew what was happening, it became endemic, and, shortly thereafter, was called and epidemic. By March 2020, what had not happened in a little over 100 years happened – a global pandemic.

“About 3.9 million deaths have been recorded as at yesterday, and still counting. Once in our lifetime, we witnessed a pandemic that attacked the three most critical essence of livelihood – Health, Energy and Economy. They were individually and collectively severely damaged, leaving the whole world confused, helpless and almost hopeless. I pray that our memories of COVID-19 will not be defined by the number of cases or deaths. Rather, let us exploit the opportunities that come with it.

“No doubt, our world and livelihood have changed for good.The way we live, chat, relate, communicate, transact, work, travel, socialise and, I dare say, our approach to management of risks have all changed.”

He urged the new chairman to apply his knowledge  of the industry to record more success during his time.

“As we socialise, I would encourage that we ponder as well as share views on a few of those global risks and evolutionary trends that have great potential of challenging the uncertainty, the frequency and the severity of insured losses going forward.”

He highlighted climate change, global terrorism and cybersecurity  as three critical global risks and trends insurers should take interest in.

He said: “The world is experiencing more frequent natural disasters associated with climate change, which as you all know, is a result of rising temperatures attributable to carbon emissions largely from fossil fuels. This is the much-talked about energy transition. Several interventions are ongoing to curtail the emissions, including new technology breakthroughs, innovation and efficiency gains, squeezing out funds for carbon energy projects, and uptake of more renewable fuel types. Citizens action against emissions have also attained very sophisticated dimensions.

“Whereas handling the more physical phenomena of climate change like wildfires, floods, quakes etc, might be more advanced, the potential health impact is still very much unknown. A possible health pandemic due to extreme temperatures could be multiples of what the world has seen with COVID-19, possibly making climate change the greatest existential threat to human health history. As the world gradually transit and embrace the green economy, your sector is expected to play a leading role in helping stakeholders manage emerging risks.

“Terrorism is the use of illegal force and violence for political, economic, religious, or social goals through fear, coercion or intimidation. They are usually geographical, deliberate, premeditated, intentional and systematically designed to inflict mayhem and maximum damage at a location. Terrorism is neither accidental nor random, and they cover a broad range. No doubt, the character of terrorism and similar crimes make them quite difficult to design appropriate risk mitigation or insurance covers against losses. But since the frequency of the occurrences and the severity of such crimes are on the increase, the insurance industry would have to develop more sophisticated systems to better manage the inherent and associated risks.

He continued: “Digital is the new world. More people would rather transact in the cloud than physical. Technology is far advanced in digitalising almost everything that is previously done physically. Again, thanks to COVID-19, which has made this isolation, contactless or minimal contact habits the norm, making platforms like Facebook, Twitter, Instagram, LinkedIn, knowledge platforms, media sharing, communication and collaboration tools like Zoom, Teams, etc the preferred way of life. While these platforms have solved a lot of problems for humanity, it is equally well known that they are vulnerable and open to increased internet-based risks including network security, information piracy, business interruption, data hacking and destruction, extortion, theft, fraud etc.

“Although cyber-security insurance appears to be relatively well-developed before now, the industry will, no doubt, have to drastically improve its sophistication to be adequately prepared for the complexity and multiplicity of the new risks associated with the predominantly digital world. I believe the NIA, under the leadership of Chairman Ganiyu Musa, will sufficiently and successfully crack these issues and proactively get the industry to a pole position for modernisation and sophistication.

“Finally, your industry must progressively leverage the use of internet capabilities, data and advanced analytics to boost risk transparency, curtail routine accidents, mitigate damage, deployment of innovative customer services including flexible, responsive and personalised systems, better management of claims, decrease underwriting risks and expand insurability. With innovation, technology advancements and more accurate predictive capability, there is a great opportunity to automate for efficiency and effectiveness.”

Meanwhile, Musa, who is the 24th chairman of the association, said the NIA, an umbrella body of insurance companies, would refocus to enable it get support from stakeholders, particularly the executive and legislative arms of government, adding that it would also work with others to maximise the benefits of insurance.

The NIA chief unveiled his nine-point agenda to enable him take the industry to lofty heights.

His first agenda, he said, is to work with stakeholders to ensure the passage of the Consolidated Insurance Bill.

He also seeks to improve the relationship between NIA and its regulatory agencies, including National Insurance Commission (NAICOM) Central Bank of Nigeria (CBN) Securities and Exchange Commission (SEC) and National Pension Commission (PenCom); collaborate with other bodies to deepen insurance penetration; promote ethical standards among NIA member companies and the larger industry to earn the respect for it; work with stakeholders to address laws on insurance practice; work with its partners such as GIZ and the Financial Inclusion Secretariat to ensure more insurance penetration and work with NAICOM to achieve the migration to IFRS 17.

Musa maintained that the list was not exhaustive, adding that his administration would look inwards to take advantage of the untapped potential demand for insurance, stressing that this would engender relevance of insurance business to the growth of the nation.

The NIA has published the expulsion of Industrial and General Insurance Limited, Niger Insurance Plc and Standard Alliance Insurance Plc for failing to meet their obligations to policyholders.

The firms were asked to stop using the NIA logo on their letterheads and  documents.

Commissioner for Insurance, Sunday Thomas, implored the NIA to  ensure that its members live up to their claims’ responsibilities.

 

 

By Omobola Tolu-Kusimo

Allianz Nigeria has received approval from the National Insurance Commission (NAICOM) to sell COVID-19 travel protection cover.

In a statement, its Chief Customer Officer, Tunji Oshiyoye stated that the introduction of the product followed the announcement of the Allianz Risk Barometer 2021 results, which is dominated by the pandemic risks – Business interruption, COVID-19 pandemic and cyber incidents.

According to him, the risks are  linked, demonstrating the vulnerabilities of a connected world.

He explained that Allianz offers travelling customers protection against emergency medical expenses for COVID-19 diagnosis while on a trip.

The travel plan also covers accommodation costs for COVID-19 diagnosis during a trip, he added.

He continued: “Due to the effect of the COVID-19 pandemic, many countries have imposed mandatory quarantines, border closures, entry bans as well as restrictions for domestic travel as a means to curb the spread of the virus.

“The introduction of vaccines has a direct impact on travel, especially air travel as demand for travel gradually begins to return to normalcy with airlines beginning to advertise summer travel.

“Allianz Nigeria offers international travel insurance that meets the travel requirements of various embassies, including Schengen member states. The plan covers emergency medical expenses and hospitalisation abroad, medical evacuation, emergency dental care, legal assistance, compensation for delayed trip, or lost checked-in baggage. Allianz also provides 24-hour travel assistance worldwide.

|”Allianz has long experience in travel insurance offering the market a range of travel insurance options. There’s a policy for every type of travel so, whether you’re traveling alone, heading on a family holiday, a last-minute business trip or travel emergency, we’ve got you covered,” he said.

By Omobola Tolu-Kusimo

Leadway Health in partnership with the Lagos State Blood Transfusion Service and REPPLAW Blood Donors Club have announced its blood donation drive initiative to commemorate the World Blood Donor Day.

The two-day exercise commences today at the Leadway’s Corporate Office in Surulere, Lagos.

The firm said the initiative aligns with the  theme of the World Blood Donor Day, “Give blood and keep the world beating,” to raise awareness on the critical need to provide safe blood through unpaid and voluntary blood donors to the healthcare system.

Chief Executive Officer, Leadway Health, Dr Tokunbo Alli stated that research by the World Health Organisation (WHO) on the impact of COVID-19 pandemic on blood supply and demand in the WHO African Region shows that the number of blood donors has dropped in 32 countries.

He said: “Nigeria recorded a 37.8 per cent decrease in blood donations between June 2019 and June 2020. This sad reality calls for an immediate response from the government, national health authorities, corporate organisations, under which Leadway Health and other socially responsible organisations are primed and proud to respond and, most importantly, well-meaning individuals towards the well-being of every member of the society.

“The need for blood is universal, but access to blood for all those who need it, is not. With this collaboration, we are optimistic that unpaid and voluntary donors will come out in their numbers to donate blood, show care, and contribute to better health which is a key driver for us at Leadway Health. We implore everyone especially the youth to embrace this humanitarian call to donate blood, inspire others to do the same and enhance communal solidarity,” he added.

 

By Omobola Tolu-Kusimo

To motivate her retail sales force  in line with her corporate strategy, FBNInsurance Limited has rewarded her outstanding financial advisors, sales managers, senior sales manager and area sales managers during the company’s MD/CEO EMBER Awards and The Retail Annual Competition (TRAC) Awards in Lagos.

The Executive Director, Retail Business Distribution, FBNInsurance Limited, Mr. Odinakachi Umekwe, commended the retail team for its outstanding performances despite the pandemic.

He said: “The retail team is the company’s potent sales force. This team of over 2000 vibrant men and women all over Nigeria has sold insurance under the most challenging environment to ensure the company stays ahead in the retail space despite the limitations imposed by COVID-19. This awards is to adequately reward the top Financial Advisors and motivate others to strive more.”

The Abuja Sales Area won the Best Performing Area, Enugu and Aba Area came second and third. The winners received cash.

The Managing Director/Chief Executive Officer of the company, Mr. Val Ojumah, presented a new Hyundai car to the overall winner of the 2020 TRAC Award (Financial Advisors category), Okonkwo Nkechi Rita. Winners in other categories got cash prizes, return tickets to the United States, a trip to Dubai as well as training opportunity at the South African Business School, University of Stellenbosch.

Ojumah stated:“It is exciting to know that we sold, made profits and still have our jobs at a time people couldn’t even go out to work due to the pandemic. Though 2020 was challenging, it has taught us how to do things better, away from the traditional way. All thanks to innovation and digitalisation. And as a business that thrives in difficult times, we will continue to adapt to changes that evolve with time.

“I commend the entire retail team for their relentless efforts and charged them to do more, strive for victory and never rest on their oars. I and my team will continue to give you adequate support to ensure they meet their sales target. Be assured that we will give more attention to what you will need to meet your targets.”