Category: Insurance

By Omobola Tolu-Kusimo

Covid-19 pandemic has put pressure on sales as a result of reduced businesses with an upsurge in claims arising from life, health, travel and business interruption insurance, among others.

Furthermore, the global economic slowdown due to the pandemic had driven interest rates even lower, market volatility and increasing credit risk exposures leading to more credit insurance claims.

These impacts are likely to affect the solvency position of many insurers which would require regulatory scrutiny with appropriate solvency tests to ensure insurers can withstand the immediate and knock-on impacts of the covid-19.

These were the findings of an Actuarial Scientist and Chartered Insurer, Dr Pius Apere.

Apere, who is the Chairman /CEO Achor Actuarial Services Limited, said the impact of Covid-19 has, no doubt,  affected the implementation of the insurance industry recapitalisation guidelines; hence the recent extension of the recapitalisation deadline to September 30, 2021.

He said the extension would allow insurers space to review their strategic initiatives and plans to meet the deadline.

In a paper entitled, “Recapitalisation of Nigerian Insurance Industry in Covid-19 Pandemic Era”, Apere highlighted some critical lifestyle changes, possible challenges and opportunities, which could arise from recapitalisation and/or covid-19 pandemic that would affect the industry.

He stated that the recapitalisation had been designed to provide the required capital base to address some critical challenges facing the industry over the decades to reform the sector for sustainable growth and development.

He maintained that the key critical challenges to address post- recapitalisation are the inability to pay genuine claims, lack of innovation in product development, lack of consumer education and awareness, poor digitalisation (ICT) of insurance operations, inability to underwrite bigger risks, low market penetration, inadequate human capital development, among others.

He stressed that the challenges from covid-19 had impacted on the recapitalisation, leading to its extension of the deadline by the regulator.

Therefore, the industry stakeholders were expected to be prepared to manage the challenges effectively to achieve the benefits of the recapitalisation, he added.

By Omobola Tolu-Kusimo

FBN General Insurance Limited witnessed an impressive growth during its 2019 financial year, the Managing Director/Chief Executive Officer of the company, Mr. Bode Opadokun, has said.

At the Fourth Annual General Meeting (AGM) of the company in Lagos, Opadokun said they grew their Gross Premium Written (GPW) by 58 per cent from N4.63 billion in 2018 to N7.31 billion last year.

He stated that the company also recorded a 19 per cent increase in Profit Before Tax (PBT) of N733 million compared to N615 billion recorded in 2018.

He said they also achieved 17 per cent growth in its total assets in 2019, translating to N11 billion as against N9.4 billion recorded in 2018.

He added that the company ensured prompt claims payment of N2.3 billion to customers during the year.

READ ALSO: FG releases N13.6b hazard allowances, life insurance for health workers

On the results and future outlook of the company, the Chairman of the company, Mr. Gbenga Shobo, said: “We are pleased with our 2019 financial year end results. We will continue to ensure the growth trajectory is sustained in 2020 financial year. While we anticipate some improvements along key macroeconomic fundamentals, we shall deploy strategies aimed at optimising the inherent opportunities within the economy.

“We are quite optimistic that  2020 will be the best so far for our shareholders and esteemed customers in the history of FBN General Insurance Limited. With the advent of the dreaded pandemic ravaging the globe, the company will continue to break new grounds, adapt to changes and relentlessly remain innovative in delivering value to its shareholders and customers.”

By Omobola Tolu-Kusimo

The African Insurance Organisation (AIO) has cancelled its conference.

Its Executive Committee announced the cancellation of the 47th Conference and Annual General Assembly of the AIO, citing COVID-19 global pandemic.

Read Also: Govt releases N13.6b for health workers hazard allowances, life insurance

In a statement, AIO Executive Secretary Jean Baptiste Ntukamazina,  said the conference initially scheduled for Lagos from May 31 to June 3, 2020 would hold next year also in Lagos.

The committee stated that payments made by delegates for the conference would be either reimbursed or carried forward to 2021 on demand.

By Omobola Tolu-Kusimo

AIICO Insurance has applied to the Nigerian Stock Exchange (NSE) for the approval and listing of 4,357,770,954 ordinary shares of  50 kobo each at 80 kobo per share for five new ordinary shares on every 13 ordinary shares held.

Head, Strategic Marketing & Communications, Segun Olalandu, in a statement noted that shareholders now have the opportunity to increase their stake and position themselves for higher returns in a company with excellent prospects.

He stated that the company’s recapitalisation journey started when the National Insurance Commission (NAICOM) planned to increase the capacity of the industry to take on more risks.

“Responding to this, he said, ‘’AIICO quickly articulated a clear path to meet the new minimum regulatory capital requirement. The company followed through with regular communications at all stages in the execution of the strategy with its shareholders, who have been supportive of the efforts.

“In February 2020, the company completed its private placement successfully with 38.83 percent of its shares snapped up by two strategic investors, LeapFrog Nigeria Insurance Holdings Limited (28.24 per cent) and AIICO Bahamas Nigeria Limited (10.59 per cent), raising the share capital from N6.1billion to N11.3billion.

“The Rights Issue is expected to generate N3.5billion, bringing the company closer to meeting the required minimum paid-up capital of N18 billion. The exercise will be followed subsequently with a capitalisation (bonus) issue, which has a qualification date of September 23, 2020.”

By Omobola Tolu-Kusimo

Old Mutual has announced its support for virtual learning by the Lagos State Ministry of Education, especially among children from vulnerable communities across the state.

The firm, a subsidiary of the Pan-African insurance firm, Old Mutual Limited, is partnering the state on the ministry’s digital platform ‘Roducate’ to providing radio sets for more traditional forms of engagement.

In addition, the firm will launch a financial education series for teachers across Lagos public schools to boost their capacity to impart financial literacy for students and to help them build financial security for themselves.

The leading insurer stated this  when members of its Executive Management Team, which include the Managing Director, Old Mutual Nigeria Life Assurance Company Limited, Mr. Olusegun Omosehin; the Managing Director, Old Mutual General Insurance Company Nigeria Limited, Mr. Olalekan Oyinlade; Executive Head, Marketing, Old Mutual Nigeria, Alero Ladipo, visited the Lagos State Commissioner for Education, Mrs. Folashade Adefisayo, at the ministry’s Secretariat in Lagos.

Omosehin said: “For us, it is a fulfilment of one of the values we hold very dear at Old Mutual. As an institution, there are five pillars of responsibilities; one of which is the responsibility to our people and the community where we operate. This step is in alignment with these principles that are very dear to us. We are happy to partner with the Lagos State Government, particularly in the quest to drive virtual learning among school children.”

Read Also: Govt releases N13.6b for health workers hazard allowances, life insurance

Mrs. Adefisayo said: “We have adopted virtual classes, including leveraging mass media platforms like radio and television as well as popular digital platforms to ensure that school children even in the remote areas learn while schools are shut.

“We appreciate the ingenious support from Old Mutual Nigeria to sustain the government activities around education in the state. These supports mean a lot because we are very excited that people, organisations and groups are now supporting the government to drive virtual learning and push simple devices to as many of our students as possible.’’

By Omobola Tolu-Kusimo

Unitrust Insurance Company Limited is planning to become a mega company post-recapitalisation, the Managing Director, Mr. John Ijerheime, has said.

He made this known during a Zoom Meeting organised by the company in Lagos.

Ijerheime said the company  would ensure that it meets the  N10 billion required by the National Insurance Commission (NAICOM), as their capital stands at N6billion.

He stated that they were considering a business combination to get through the exercise successfully.

He said discussions with a top-notch underwriter were ongoing and that the outcome would make the brand a mega and compete with the best players in the  industry.

He further stated that the exercise would help boost their long-term strategic goals of value addition to owners of the company and other stakeholders.

He said: “The exercise will see Unitrust Insurance as a big player in the insurance industry taking bigger risk while playing in the global market. Our strategy is to progressively grow our market share and become a market leader by continually identifying, meeting and exceeding customer’s expectation through operational efficiencies and rendering excellent customer service.

Read Also: Govt releases N13.6b for health workers hazard allowances, life insurance

“We will remain true to our vision which is to create value to our stakeholders by ethically delivering different products and partnering clients to proactively manage their risk. Also, we will continue to work at delivering continuous growth using our people and leveraging on technology.  Our business model will be driven by structural analysis of our strengths, weaknesses, opportunity and Threats (SWOT) for responsive bonding. We will pursue the corporate business, high-net worth individuals as well as retail segments of the market.

“We will adopt strategies to increase our premium income going forward. This will include market expansion, retention of clients, improve customer service, develop alternative channels, retail penetration and direct business and leverage on technology and insure tech and products development. This is what we hope to achieve as a company, in line with our strategic growth plans.”

On claims payment, Ijerheime stated that the company is prudent in underwriting and has deployed cutting-edge technology to provide the best services in terms of prompt claims settlement in the industry.

“We have paid N269.1 million within the first quarter of 2020. These claims were paid while the country was on Covid-19 lockdown in fulfillment of our avowed commitment to prompt claims settlements,” he noted.

By Omobola Tolu-Kusimo

Insurance firms that fail in claims payment have been given a deadline to pay or face expulsion from the Nigeria Insurers Association (NIA), The Nation has learnt.

Findings have shown that the association is mindful of the expectations of the insuring public.

Some firms have been either not be paying claims or not paying promptly.

Worried by the development,  NIA implemented tough measures along with self-regulation.

In an interview, NIA outgoing Chairman Mr. Tope Smart said the issue of non-payment of claims had been addressed.

He stated that he constituted a disciplinary committee, who tackled defaulting firms.

He stated that erring members were given a deadline to pay or face expulsion, noting that with this, the response of the members to claims payment had improved.

Smart further said with Covid-19 disrupting global businesses,  NIA members have been trying to do things differently to improve lives of policy holders and deepen insurance penetration.

He said: “Despite the pandemic and the lockdown, our members have continued to meet their claim obligations even during the lockdown as our members worked throughout the period albeit remotely.

READ ALSO: Govt releases N13.6b for health workers hazard allowances, life insurance

“Our policy holders were quite impressed with this, and this action has given them more confidence in the Insurance Industry.”

He said with the recognition of the industry by the Federal Government, they would continue to ensure that the benefits of insurance were made available to policy holders so that they could continue to perform  their role as the bedrock of the economy.

The industry will also continue to partner the governments at various levels of nation building.

“Despite the challenges, the industry has achieved a lot in the last two years. For me, the greatest achievement is the recognition of the insurance sector by no less a person than the President Muhammadu Buhari.  This is the first time in the history of the industry in Nigeria that our sector will get the attention and commendation of the number one citizen of the country.

“This is a big deal and we are building on this, so that the industry can take its proper place in the configuration of the country.This is not a mean feat when you look at how the sector has been bastardised in the past,” he added.