The Nation Newspaper

Category: Insurance

  • FBNInsurance records N37.6b gross premium

    FBNInsurance records N37.6b gross premium

    Our Reporter

     

    FBNInsurance Limited has presented its 2019 audited Annual Report to its Board at the company’s e-Annual General Meeting (e-AGM) held in Lagos.

    At the AGM, the Managing Director/Chief Executive Officer, FBNInsurance Limited, Mr. Val Ojumah, stated that the company closed the year with positive results and also made prompt claims payment to customers.

    Reviewing the year’s performance, Ojumah said: “Our Gross Premium Written (GPW) rose to N37.63 billion, an increment of 45 per cent compared to the N25.98 billion achieved in 2018. Profit Before Tax (PBT) appreciated by 28 per cent from N6.13 billion in 2018 to N7.82 billion in 2019.

    “This performance can be attributed to the company’s sustained growth and continuous penetration into the retail segment of the industry. In the same vein, as a responsive and reliable insurer that keeps its promises, we promptly paid claims to our clients to the tune of N9.90 billion which is a 130 per cent increase from N4.31 billion paid in 2018. One of our primary objectives is to help people, businesses and communities get back on their feet when the unexpected happens.

    “Also, in demonstration of its commitment to its shareholders, we announced a dividend of 97k per share, representing a 49 per cent increase from 65 kobo that was declared in 2018. With this, FBNInsurance has consistently paid dividends to its shareholders since 2013.’’

    The Board’s Chairman, Mrs. Adenrele Kehinde, ascribed the performance to the growth and sterling performance of the company, which was made possible through mining the “hidden treasures” in the retail life insurance market.

     

  • PTAD to pay NAHCO’s ex-workers outstanding entitlements

    PTAD to pay NAHCO’s ex-workers outstanding entitlements

    Our Reporter

     

    PENSION Transitional Arrangement Directorate (PTAD) is set to pay the first batch of verified former workers and Next-of-Kin (NoK) of the Nigerian Aviation Handling Company (NAHCO), the Executive Secretary, Dr. Chioma Ejikeme, has said.

    The PTAD boss, in a statement, stated this was in line with the takeover approval of pension-related matters of some agencies, privatisation and liquidation by the Bureau of Public Enterprises in 2017, among which is the Nigerian Aviation Handling Company (NAHCO).

    According to her, the Directorate carried out a verification and biometric capture exercise for eligible former workers and NOK of deceased former workers of NAHCO during the Directorate’s parastatals pensioners’verification last year.

    She said the collated data were subjected to rigorous due processes culminating in the computation and auditing of the entitlements of the verified ex-workers and NOKs.

    She added that the Directorate is prepared to pay the first batch of NAHCO’s former workers and NOKs that are eligible.

    She emphasised that for the pensioners and NOKs to access the benefit, it is pertinent to they know certain salient points that define their eligibility.

    She said this includes the payment to be made for any outstanding terminal benefit on the effective date of NAHCO’s privatisation when the Federal Government’s entire equity holding in the company was disposed of; payment would be made in batches subject to availability of funds; and The effective date of the privatisation of NAHCO was 31st August 2005.

    She said workers who left prior to privatisation of NAHCO had been settled by the company and do not have any terminal benefits. She said the Federal Government was not responsible for the period served beyond the effective date of NAHCO’s privatisation and thus former workers and NOKs in this category were not under PTAD; and that NAHCO’s former workers engaged after the privatisation do not qualify for any entitlement under this arrangement.

    She assured that the welfare of pensioners remained PTAD’s priority.

  • Linkage’s recap on course, says MD

    Linkage’s recap on course, says MD

    Our Reporter

     

    LINKAGE Assurance Plc has assured shareholders that the company is on course to meet the recapitalisation requirements, its Managing Director/Chief Executive Officer 9CEO) of Linkage Assurance Plc, Daniel Braie, has stated in Lagos.

    In a statement, she said the company is exploring  several options, including rights issue, private placement, and internal capital sourcing to raise the funds.

    He said: “Insurance companies  have been raising capital as required by the National Insurance Commission (NAICOM) before the COVID-19 pandemic, which did not only affect the economy but disrupted the exercise as expected investors from both local and outside the shores of the country were affected. But we are optimistic that we will meet the new capital base of N10 billion.

    “At the close of business in 2019, the company posted a Gross Written Premium (GWP) of N6.52 billion as against N5.39 billion during the same period in 2018, indicating a 21 percent increase. From the business generated in 2019, the company also recorded a Profit Before Tax (PBT) growth of 909 percent, moving from N135 million in 2018 to N1.36 billion during the review period.’’

  • PTAD to pay NAHCO’s ex-workers outstanding entitlements

    PTAD to pay NAHCO’s ex-workers outstanding entitlements

    Our Reporter

     

    PENSION Transitional Arrangement Directorate (PTAD) is set to pay the first batch of verified former workers and Next-of-Kin (NoK) of the Nigerian Aviation Handling Company (NAHCO), the Executive Secretary, Dr. Chioma Ejikeme, has said.

    The PTAD boss, in a statement, stated this was in line with the takeover approval of pension-related matters of some agencies, privatisation and liquidation by the Bureau of Public Enterprises in 2017, among which is the Nigerian Aviation Handling Company (NAHCO).

    According to her, the Directorate carried out a verification and biometric capture exercise for eligible former workers and NOK of deceased former workers of NAHCO during the Directorate’s parastatals pensioners’verification last year.

    She said the collated data were subjected to rigorous due processes culminating in the computation and auditing of the entitlements of the verified ex-workers and NOKs.

    She added that the Directorate is prepared to pay the first batch of NAHCO’s former workers and NOKs that are eligible.

    She emphasised that for the pensioners and NOKs to access the benefit, it is pertinent to they know certain salient points that define their eligibility.

    She said this includes the payment to be made for any outstanding terminal benefit on the effective date of NAHCO’s privatisation when the Federal Government’s entire equity holding in the company was disposed of; payment would be made in batches subject to availability of funds; and The effective date of the privatisation of NAHCO was 31st August 2005.

    She said workers who left prior to privatisation of NAHCO had been settled by the company and do not have any terminal benefits. She said the Federal Government was not responsible for the period served beyond the effective date of NAHCO’s privatisation and thus former workers and NOKs in this category were not under PTAD; and that NAHCO’s former workers engaged after the privatisation do not qualify for any entitlement under this arrangement.

    She assured that the welfare of pensioners remained PTAD’s priority.

  • Custodian & Allied harps on customer satisfaction

    Custodian & Allied harps on customer satisfaction

    Our Reporter

     

    CUSTODIAN & Allied Insurance is keen on delivering innovative products that best satisfy customer needs, the Managing Director, Mr Toye Odunsi has said.

    Odunsi stated that the company has  achieved an efficient service to the insured because of its strong Board, which comprises individuals who have proven track records in their various fields of endeavour, thereby bringing several years of experience to bear upon the Board.

    He said: “Our vision is to be Africa’s insurer of choice. We also aim to develop, and deliver innovative insurance products that best satisfy customer needs, while operating a highly profitable, efficient, resourceful and ethical organisation.

    “We position ourselves strategically in the market to be perceived as a modern, dynamic and resourceful underwriter, while we strike a fine balance between the businesses of sound underwriting, cost control and service on one hand and investment on the other.’’

  • De-risking agric business against COVID-19

    De-risking agric business against COVID-19

    The need for farmers and other stakeholders in the agriculture sector to embrace insurance has become more pertinent with the outbreak of COVID-19. Omobola Tolu-Kusimo writes that farmers can leverage agriculture insurance to de-risk their business against the virus.

     

    THE contributions of agribusiness to the economy are enormous. The sector contributes   21 per cent or $85billion (N30 trillion) to Nigeria’s Gross Domestic Product (GDP) of $405 billion or N145 trillion.

    According to the Nigeria Bureau of Statistics (NBS), as at 2017, agric insurance market size was $7.5 million or N2.3 billion.

    At the moment, the agric insurance market valuation, however, stands at $850 million or N304 billion, while agric insurance penetration is 0.88 per cent.

    Records show that there are only 20 million registered farmers in the country.

    But how can more farmers and other stakeholders in the value chain embrace agriculture insurance and leverage it to de-risk their business during COVID 19-pandemic period?

    During a webinar organised by Royal Exchange Plc with theme, “How farmers can leverage agriculture insurance to de-risk their business during COVID-19 pandemic times”, the Senior Manager and Head of Agricbusiness/Business development, Royal Exchange, Chukwuma Kalu said there were several ways which farmers and others in the agric value chain could benefit from insurance.

    He stated that high level of uncertainty in determining farm production and output at harvest was making agriculture a difficult business segment to venture into.

    He added that climate change and adverse weather events is also distorting farming and practices, citing drought, excessive rainfall, flooding, hail, high temperature, loss of vegetation impact severely on farmers, among others, as part of the distortions.

    He noted that agric insurance was being used for risk profiling of farmers and agribusinesses and pricing of their business risks, adding that same data could be shared with lending institutions to assist in creating of credit rating scores of agribusinesses.

    He said: “Business intelligence tool for business planning, budgeting and revenue forecasting in determining economies of production, assessing working capital requirements for agric-loan origination and yield estimation for future earnings.

    “It empowers remodelling of agribusinesses via keeping of adequate farm records and accounts as risk improvement measures and also pre-condition for attracting insurance coverage. Pre- and post-insurance inspection visits and perusal of farm records are part of the conditions to be adhered to by agribusinesses.

    ‘’It further works in advancements in weather satellite technologies combined with agric insurance is driving predictive analytics on weather events aiding product design and risk-based premium pricing for small-holder crop and livestock farmers.’’

    Kalu said Royal Exchange has invested significantly in climate-change risk management digital solutions which affords the company the comparative advantage of offering customers with unique services like digital farmer data collection; underwriting/insurance; policy management; and claims management.

    Chief Actuary, Risk Shield Consultants Limited, Agrotosh Mookerjee, in his paper on “Relevance of agriculture insurance during Covid-19 pandemic and beyond” believes agriculture aggregators like banks, microfinance institutions, agri-businesses should care about agriculture insurance while lending to the sector.

    He said considerations for  the pandemic should involve distribution channels, group insurance, products, digitisation, capacity building, more focus on remote training e.g. via webinars, Excel-based technical trainings, etc; bundling of agriculture insurance with other microinsurance products e.g. specialist COVID-19 health insurance products.

     

  • Law Union and Rock’s profit hits 254%

    Law Union and Rock’s profit hits 254%

    Law Union & Rock Insurance Plc has posted a 254.43 percent increase in profit after tax in its 2019 financial year end, rising from N226.5 million in 2018, to N802.8 million.

    Gross Written Premium grew to N4.82 billion from N4.54 billion in 2018, representing a 6.34 percent increase in top-line performance for the period. Total assets grew by 8.35 percent from 11.2 billion in 2018 to 12.1 billion in 2019.

    Further, shareholders fund and underwriting result both recorded double digit growth from N6.4 billion to N7.2 billion and from N638.2 million to N982.9 million; representing 12.3 and 54.01 percent growth respectively.

    The company maintains a healthy solvency margin of 206 percent, exceeding NAICOM’s statutory solvency margin of 100 per cent and far above industry average of about 125 percent.

    On the other hand, underwriting expenses decreased by 4.14 percent from N2.52 billion to N2.41 billion while management expense increased by 6.6 percent, from N1.3 billion to N1.4 billion. Net Claims Expenses reduced by almost 20 percent, indicating that the company was able to write more profitable business, despite average claims costs rising in the industry.

    Further analysis showed that the company achieved seven percent growth on the Return on Assets, translating to N936.17 million recorded in 2019. There was also 11 percent growth on Return on Equity while more than 100 percent of the company’s Written Premium was earned.

    The Managing Director, Mr. Ademayowa Adeduro said the company was pleased with the results.

    He however said they intended to do better, as the year started well, with quarters one and two recording double digit growth.

    He added that the good indices show that the company is healthy.

  • AXA Mansard’s gross written premium is N43.6b

    AXA Mansard’s gross written premium is N43.6b

    AXA Mansard Insurance Plc recorded a Gross Written Premium (GWP) of N43.62 billion in 2019 up by 29 per cent from N33. 92 billion recorded in 2018, the Chief Executive Officer, AXA Mansard Insurance, Mr. Kunle Ahmed has said.

    Ahmed, in a statement, said the company’s net premium income also grew by 33 per cent to N26.29 billion from N19.70 billion within the period.

    He said while profit before tax recorded a 16 per cent increase to N3.93 billion in 2019 compared with N3.38 billion the previous year, the profit after tax moved up by 17 per cent to N2.91billion in 2019 as against N2.48 billion recorded as at December 2018.

    He said the result also showed a 25 per cent growth in total assets from N73.77 billion to N92.28 billion within the same period while the group’s shareholders’ funds increased to N25.26 billion from N20. 93 billion, a 21 per cent growth.

    READ ALSO: AXA Mansard offers access to health care

    He stated that  shareholders’ funds of N23.08 billion, went up by 38 per cent from N16.77 billion as at December 2018.

    He added that the company paid N17.884 billion claims in 2019 from N12. 130billion paid out in 2018.

    He said: “Our focus on identifying new growth areas in our markets, strengthening our partnerships and refining our distribution strategy continues to pay off as we grew revenues by 29 per cent, despite the challenging operating environment.

    The 44 per cent growth in net claims is also a testament of our capability to pay valid claims promptly, even as we transit from just a payer to the partner of our numerous customers,” he added.

  • AIICO records N17.6b

    AIICO records N17.6b

    AIICO Insurance Plc recorded Gross Written Premiums of N17.6 billion in its first quarter 2020, up by 23 per cent from first quarter of 2019 of N14.3 billion, its Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun, has said.

    According to him, the growth is driven by sustained positive performance across the major lines of business of the Group: retail and corporate and institutional businesses.

    He said the Group also recorded a 24 per cent increase in Profit Before Tax (PBT) of N1.44 billion, compared to N1.17 billion in Q1 2019, while Profit after tax (PAT) grew by 129 per cent to N1.88 billion, compared to N0.82 billion attained in Q1 2019.

    He said: “AIICO delivered excellent first quarter results, demonstrating the overall strength of our company and ability to continue to meet our obligations to stakeholders even in the face of the COVID-19 global pandemic. We are living in a period of uncharted waters and recognise the situation presents both challenges and opportunities. Our resilient business continuity plans and robust technology infrastructure ensured we remained operational throughout the lockdown period. We have rolled out additional digital channels for the convenience and safety of our customers, and our employees have embraced the Work-From-Home (WFH) concept – indeed this is the new normal.

    READ ALSO: New strategic investor acquires 39% equity stake in AIICO Insurance

    “In light of these outcomes, we recorded strong growth in our retail life business, which grew by 34 per cent to N10.97 billion as against N8.2 billion in the previous quarter; and an increase of six per cent in our corporate and institutional business to N6.2 billion from N5.9 billion.”

    ‘’Within the period under review, the Group’s balance sheet improved with total assets growing by 11 per cent to N176 billion compared to N159 billion in December 2019. Shareholders’ funds, also rose by 0.28 per cent to N27.99 billion from N27.91 billion in December 2019.’’

  • LASPEC urges retirees on documentation

    LASPEC urges retirees on documentation

    The Lagos State Pension Commission (LASPEC) has urged prospective retirees in the state civil service to begin their documentation with the commission about six months to their retirement.

    Its Director-General, Mr Babatunde Obilana made this known during the virtual Retirement Benefit Documentation Seminar for prospective retirees between June and December, this year via Zoom.

    He said the seminar was put together to assist the prospective retirees have a smooth exit from active service.

    Obilana, represented by the agency’s Executive Director, Finance and Investment,Mr Olumuyiwa Oshin, said the programme was aimed at educating the retirees on documentation.

    He said this  would ensure that they were able to access  their accrued rights and pensions after retirement.

    ‘’Having spent a significant amount of your productive years working for the state government, it is imperative that your transmission to retirement should be seamless,‘’ he said.

    He lauded Governor Babajide Sanwo-Olu and the Commissioner for Establishment,Training and Pensions, Mrs Jibola Ponnle, for the prompt remittance of monthly pension and accrued rights of retirees and the funding and support given to the commission.

    A senior officer in the Inspectorate Department of the Commission, Mr Afees Oyebo, said early documentation would enable prompt payment of their entitlements after retirement.

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    He stated that this was to ensure that the benefits due to retirees for their services under the ‘Pay As You Go’ scheme, which was discontinued on May 31, 2007 is computed and credited into their Retirement Savings Account (RSA).

    A prospective retiree, Mrs Taiwo Oluremi, lauded LASPEC for organising the event and urged the commission to intensify efforts to ensure that bond certificates were ready on time.