Category: Insurance

 Omobola Tolu-Kusimo

THE Gulf of Guinea has re-emerged as the global piracy hotspot accounting for 90 per cent of global kidnappings reported at sea last year, with the number of crew taken increasing by more than 50 per cent to 121, according to marine insurer Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2020.

Allianz, in the report made available to The Nation, stated that given heightened political and economic uncertainty in the world, piracy is a threat that is likely to remain for a long time.

The insurer said piracy remains a major risk for shipping. Last year, there were 162 incidents of piracy and armed robbery against ships worldwide, down from 201 in 2018. This is despite the recent success in tackling Somali pirates.

Somalia reported zero piracy incidents last year, a trend that continued through the beginning of 2020. However, Somali pirates continue to possess the capacity to carry out attacks in the Somali basin and wider Indian Ocean, the report read.

Large shipping losses are at a record low having fallen by over 20 per cent yearly.

However, the coronavirus crisis, it said, could endanger the long-term safety improvements in the shipping industry for the year and beyond, as difficult operating conditions and a sharp economic downturn present a unique set of challenges.

Coronavirus has struck at a difficult time for the maritime industry as it seeks to reduce its emissions, navigates issues such as climate change, political risks and piracy, and deals with ongoing problems such as fires on vessels,” says Baptiste Ossena, Global Product Leader Hull Insurance, AGCS.

“Now the sector also faces the task of operating in a very different world, with the uncertain public health and economic implications of the pandemic,” he added.

The yearly study analysis reported shipping losses over 100 gross tons (GT) and also identifies 10 challenges of the coronavirus crisis for the shipping industry which could impact safety and risk management.

In 2019, 41 total losses of vessels were reported around the world, down from 53 12 months earlier. This represents an approximate 70 per cent decline over 10 years and is a result of sustained efforts in the areas of regulation, training and technological advancement, among others. More than 950 shipping losses have been reported since the start of 2010.

“Piracy remains an ongoing issue. We thought we had a handle on it but it has manifested yet again,” says Captain Rahul Khanna, Global Head of Marine Risk Consulting at AGCS.

“Hijackings by Somalian pirates may have reduced for now, but incidents have been increasing in West Africa and parts of Asia, where we see a worrying pattern of violent attacks against crew, as well as kidnappings.

“Following an active 2019, there has been no let-up in piracy in 2020. There were 47 attacks reported to the IMB in the first three months of the year, up from 38 in the same period last year, mostly targeting tankers, as well as container ships and bulk carriers. Again, the Gulf of Guinea accounted for the highest number of attacks (21) although there were also (five) vessels boarded in the Singapore Strait and several incidents of armed robbery in Latin America.

“In April 2020, the Portugal-flagged container ship Tommi Ritscher became the latest vessel attacked by pirates in the Gulf of Guinea. While at the Cotonou Anchorage, Benin, the 4,785 teu Singapore-owned vessel was boarded by pirates and eight crew were kidnapped. The incident followed the kidnapping of nine crew from the tanker Alpine Penelope in the same area in February 2020.

“Piracy is typically local in nature but it can have a global geopolitical impact,” says Captain Andrew Kinsey, Senior Marine Risk Consultant at AGCS.

“It has proved to be an easy business model, especially in parts of the world where governments are dysfunctional or where there is little rule of law. There is a strong connection between piracy and unstable governments, which provides opportunities for pirates to carry out attacks where the state is not strong enough to properly police its coastal waters,” he added.

 Omobola Tolu-Kusimo

STANDARD Alliance Insurance Plc, Prestige Assurance Plc, Goldlink Insurance Plc, African Alliance Insurance Plc and International Energy Insurance Plc (IEI) have been sanctioned by the Nigerian Stock Exchange (NSE) for various contraventions, The Nation has learnt.

Data obtained from the X-Compliance Report published on the NSE website on July 10, stated that the firms were sanctioned for contraventions ranging from default in filing 2018 audited financial reports; failure to file first quarter 2019 reports and unauthorised publication of annual general meeting notice.

The exchange stated that Standard Alliance, Goldlink and International Energy Insurance Plc were found to have breached the rules over non-rendition of 2018 and 2019 financial statements, as well as non-rendition of quarterly financial statements.

Prestige Insurance breached the rule in unauthorised publications, non-disclosure of material information, among others.

African Alliance Insurance Plc breached the rules for non-rendition of its 2019 audited financial statements and non-rendition of quarterly financial statements.

The NSE said the X-Compliance Report is a transparency initiative which  designed to maintain market integrity and protect investors by providing compliance related information on all listed companies.

It maintained that companies that are listed on the exchange are required to adhere to high disclosure standards which are prescribed in the Rulebook of the exchange, 2015 (Issuers’ Rules), and other Rules of the exchange, from time to time, stressing that financial information, which is periodic disclosure, as well as on-going material information disclosure should be released to the exchange in a timely manner to enable it efficiently perform its function of maintaining an orderly market. The X-Compliance Report is updated every Friday at the close of market, it said.

The exchange identified Goldlink, Standard Alliance, IEI, and African Alliance as companies that fell short of the minimum listing standards in terms of timely disclosure of their audited annual financial statements and have Missed Regulatory Fillings (MRF) or are Awaiting Regulatory Approval (AWR) from their primary regulators.

It said the sanctions for non-compliance with periodic financial disclosure obligations are clearly spelt out in its Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

On the non-rendition of quarterly financial statements for Q1 2020, it said companies listed on the exchange are required to file their quarterly accounts within 30 days after the end of the quarter in accordance with the Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules).

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The exchange said: “Under Schedule 3: Delinquent filers of audited financial statements, the Exchange has identified the companies listed on Schedule 3 as companies that fell short of the minimum listing standards in terms of timely disclosure of their audited annual financial statements and have Missed Regulatory Fillings (MRF) or are Awaiting Regulatory Approval (AWR) from their primary regulators.”

“Every listed company is required to provide the exchange with timely information to enable it efficiently perform its function of maintaining an orderly market. In accordance with the provisions of Appendix III: General Undertaking (Equities), Rulebook of The Exchange, 2015 (Issuers’ Rules) and The Exchange’s Circular No. NSE/LARD/LRD/CIR3/17/05/12 on publication of announcements or press releases via the issuers’ portal, listed companies are required to obtain prior written approval from The exchange before publications that affect shareholders’ interest are made in the media or via the issuers’ portal.

“In addition, companies are also required to disclose material information to The Exchange and publish the information in their annual reports. The companies listed under Schedule 5 breached certain provisions of the listings rules and were sanctioned accordingly.

“Under Schedule 9, regulatory suspensions are suspended pursuant to the provisions of Rule 3.1, Rules for Filing of Accounts and Treatment of Default Filing, Rulebook of The Exchange (Issuers’ Rules), which provides: “If an Issuer fails to file the relevant accounts by the expiration of the Cure Period, The Exchange will send to the Issuer a “Second Filing Deficiency Notification” within two (2) business days after the end of the Cure Period; suspend trading in the Issuer’s securities; and notify the Securities and Exchange Commission (SEC) and the Market 24 hours of the suspension.”

In this regard, the ewxchange stated that Goldlink Insurance Plc was suspended over failure to file the relevant accounts by the expiration of the Cure Period while Standard Alliance failed to file the relevant accounts by the expiration of the Cure Period.

Our Reporter

Professionals in the insurance industry have acquired cutting-edge skills that match global standards and enable them to compete with their counterparts in other sectors in the past two years.

Besides, there has been a boost of capacity of members of the Chartered Insurance Institute of Nigeria (CIIN).

Similarly, the relationship between the Institute and the Chartered Insurance Institute (CII), United Kingdom has been strengthened and among some of the fruits of the relationship were revision of syllabus and the domestication of CII textbooks, launched in June.

The outgoing President of CIIN, Mr. Eddie Efekoha, made this known in his valedictory speech in Lagos.  His tenure ends on Wednesday.

He recalled that the theme of his  administration was: “Advancing insurance education and professionalism”.

He further stated that the institute’s  College of Insurance and Financial Management (CIFM) has become the focal point for human capital development for the industry.

He said: “This is evidenced by the partnership between the College and the National Insurance Commission (NAICOM) which resulted in the first-ever Insurance Directors Conference and recently in the Actuarial Development Programme.

‘’There has also been tremendous infrastructural development at the college. The college campus now has a standard tennis court, well-furnished accommodation both for students, staff and visitors.

We also recently commenced the construction of a world-class auditorium, a N300 million project kicked off with a ceremony in November 2019 for which an initial seed fund of N100 million was immediately provided.

“Also worthy of note during my tenure was the active advocacy for the adoption and implementation of compulsory insurance at various levels of government and which took institute to various states within the country. The CIIN made remarkable progress by building on the work of my predecessors.

‘’In this regard, we donated two sets of CIIN course books to seven institutions of higher learning, which include University of Lagos, University of Uyo, Enugu State University of Technology, Ekiti State University, Niger Delta University, Ken Saro-Wiwa Polytechnic and College of Insurance and Financial Management.

“In total, 462 course-books were presented to these institutions. In the same vein, the CIIN Insurance Textbook for Senior Secondary School students was also donated to secondary schools in Delta State in line with the institute’s initiative geared towards promoting insurance as a career choice for secondary school leavers.’’

FBNInsurance Limited has paid N4.4 billion claims in six months despite the impact of the coronavirus pandemic on the economy, the Managing Director/Chief Executive Officer of FBNInsurance, Mr. Val Ojumah, has said.

He made this known in a statement in Lagos.

According to him, the company paid N4.4 billion claims to customers. This represents a 26.7 per cent increase compared to N3.4 billion paid during the same period in 2019.

He said prompt settlement of customers’claims is one of the successes of the insurer as it strives to  boost customers’confidence and trust during the 10 years of the company’s existence.

He said: “As a responsive and reliable insurer, we have during this turbulent time, kept our promise to our customers by paying claims promptly. Our focus remains to provide financial security and relief to our esteemed customers especially at this trying time.

“On a related note, the company has delivered on its promise to its shareholders by paying dividends promptly.

At the recently held virtual AGM, the company announced a full year dividend of 97k per share for 2019, which represents a 49 per cent increase over the 65k per share that was paid in 2018. The company has consistently paid dividend to its shareholders since 2013.

“As at year end, the total assets base of the company grew from N70.5 billion in 2018 to N109 billion in 2019. This represents a 55 per cent growth year-on-year of which over 90 per cent are in liquid assets,” he noted.

By Omobola Tolu-Kusimo

To further increase insurance penetration in Nigeria, AXA Mansard Insurance Plc has offered a two-week free insurance cover on renewals of its comprehensive motor insurance policy.

The free cover, according to the company, which started on the May 1, would run till December 31, 2020.

Based on this, AXA Mansard motor insurance customers will receive a two-week free insurance cover upon the next renewal of their policy.

That is, upon renewal, customers will pay for 11.5 months while cover will be given for 12 months. The pro-rated premium for the two weeks is to be deducted from the amount to be paid as premium, the company said.

The Chief Executive Officer of AXA Mansard Insurance Plc, Mr. Kunle Ahmed, said: “We understand that the COVID-19 pandemic has taken a toll on many Nigerians beyond just their physical or mental wellbeing. To provide support to our customers during this unprecedented time, the company has decided to subsidise the premium payable by our motor insurance customers, whilst they get the full benefits of the cover purchased.

“AXA Mansard offers a variety of motor insurance options that fit your needs as a woman, man or parent, with flexible payment option, first responder service and 24/7 contact centre support. The First Responder Service is an initiative that provides immediate assistance to customers on AXA Mansard’s retail motor insurance plan right at the scene of an accident. AXA Mansard gives you rest of mind as you drive your valuable cars. We implore all customers to seize this opportunity to enjoy the benefits of total coverage whilst saving some money to attend to other personal needs.

“As we continue to fight this global pandemic, you can continue to count on the dedication and support of the AXA Mansard team to ensure we provide valuable assistance during these trying times and beyond,” he added.

By Omobola Tolu-Kusimo

Insurance penetration in the country is at an all-time low and this is not favourable for the well-being of individuals, businesses and the economy, the Managing Director, Stanbic IBTC Insurance Brokers, Mr Anslem Igbo, has said.

He spoke during a webinar session entitled: “Insurance being a necessity: Securing the future, protecting what’s important” in commemoration of the World Insurance Awareness Day.

He said insurance plays a critical role in promoting economic growth and development by ensuring the efficient allocation of financial resources from the surplus to the deficit unit and ultimately bulwark for business sustainability.

He stated that in the best of times, the world is an uncertain place, characterised by numerous events that cause the loss of lives and properties with some events as man-made and others natural.

He said: “The Covid-19 pandemic for instance has thrown a wrench in the works and further complicated already complicated lives, creating a near precarious situation. There is no better time than now to emphasise the necessity for insurance, than when we commemorate the World Insurance Awareness Day.

“The insurance business is a unique one which enables clients effectively manage their risks. Such risks may include theft, accident, robbery, injury, man-made and natural disasters, and even death. Insurance helps to achieve peace of mind through risk transfer and efficient insurance claims.

“In response to bridging the adoption gap, the Stanbic IBTC group created the Insurance Brokerage business four years ago when the organisation began its full operations sequel to the granting of licence by the National Insurance Commission (NAICOM) in January of 2016. Our paramount focus has since been to address identified needs in the insurance brokerage sub-sector and ensure that Nigerians are adequately protected.”

Igbo urged Nigerians to take a step in the right direction by investing in insurance to protect their assets and valuables.

By Omobola Tolu-Kusimo

Sovereign Trust Insurance (STI) Plc recorded a significant growth of 51.5 per cent in its profit before tax totalling N819 million as against N540 million recorded in 2018, its Managing Director and Chief Executive Officer, Mr. Olaotan Soyinka has said.

Soyinka, who made this known in a statement, stated that the National Insurance Commission (NAICOM) has approved the firm’s 2019 audited accounts.

According to him, the result is coming on the heels of the recent pandemic that has affected the business environment globally with no exception to insurance in Nigeria.

He stated that Gross Premium written in 2019 stood at N10.8 billion compared to the N10.5 billion written in 2018, a minimal 3.43 per cent increase.

He said another outstanding highlight of the 2019 accounts which could be described as remarkable is the rise in the firm’s Profit After Tax to N503 million as against N344 million in 2018, a 46 per cent increase.

He further stated that just as the firm grew its balance sheet in 2019, its claims payout also increased.

Similarly, Soyinka said its paid net claims at N2.2 billion in 2019, as against N1.7 billion paid in 2018.

He noted that this in a way underscores the firm’s claims paying ability resulting in a 23.59 per cent net claims expense.

The total assets also grew by 18.5 per cent to N13.4 billion in 2019 from N11.3 billion in 2018. The shareholders’ funds also rose from N5.8 billion in 2018 to N7.7 billion in 2019, culminating into a 33.7 per cent increase, he added.

The CEO assured that the firm is committed to meeting and surpassing the expectations and aspirations of its shareholders and stakeholders alike as the industry gravitates towards another round of recapitalisation.

By Omobola Tolu-Kusimo

The new Chairman, Nigerian Insurers Association (NIA), Mr. Ganiyu Musa, has pledged to preserve the interest of insurance consumers.

He spoke after being sworn-in as the new chairman in Lagos.

He assured that he would unify the  industry and uphold its ethics.

He said the issues of the industry could be surmounted, if stakeholders worked together.

Musa, who is also the Managing Director of Cornerstone Insurance Plc, is a management professional with diversified experience in insurance, reinsurance, audit, consulting, business advisory and financial management.

Prior to joining Cornerstone, he worked at African Reinsurance Corporation for 19 years, holding key positions, including Director of Finance & Accounts, Chief Financial Officer for  and Deputy Managing Director, Services.

He played a lead role in the creation and initial supervision of the risk management at African Reinsurance Corporation and supervised the design of the corporation’s investment guidelines and asset allocation.

He was also instrumental in the preparatory work and the eventual setting up of the African Reinsurance subsidiary in South Africa, where he subsequently served on the Board and Audit Committee.

At various times, Ganiyu served as a member of the investment committee of a US100million private equity fund and as chairman of the investment strategy committee of a top three Pension Fund Administration company.

He also worked with Pannell Kerr Forster and Arthur Andersen & Co where he trained and qualified as a Chartered Accountant and gained top quality experience in audit and financial consulting.

He left Africa Re in 2011 to join African Capital Alliance (ACA) as Insurance Sector Specialist and a Director on the Board of Cornerstone Insurance Plc.