Category: Insurance

Linkage Assurance Plc has assured its shareholders of stronger performance and increased returns on investment despite challenges in the environment.

The company gave the assurance at its 29th Annual General Meeting (AGM) in Lagos, where the shareholders lauded the board and management to position the company for increased growth.

The Chairman, Chief Joshua Fumudoh, said the year, no doubt, was one of the most challenging in its history as it was characterised by economic and geopolitical uncertainties.

Notwithstanding these, Fumudoh said Linkage Assurance Plc was able to grow the gross premium written by 16 percent to N12.9 billion against N11.2 billion in 2021.

He said the company was able to effectively manage its risks during the review year, posting underwriting profit of N506 million, a growth of 120 percent when compared to the loss of N2.58billion in 2021.

Linkage Assurance also strengthened its bottom-line with Profit before Tax (PBT) of N2.7 billion, and Profit after Tax of N2.57 billion.

Chairman, Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, commended the board and management for clearing the negative earnings brought by EndSARS claims which resulted in the loss position in 2021, saying that the company is now in better position to pay good dividends. President, Pragmatic Shareholders Association, Bisi Bakare said shareholder will look forward to good dividend in the current financial year.

Managing Director/Chief Executive Officer, Linkage Assurance Plc, Mr. Daniel Braie said they would  continue to refine their strategy in line with our strategic focus for the year and theme which is consolidation.

Mutual Benefits Assurance Plc has recorded a 14.27 per cent growth in Gross Premium Written (GPW) from N29.30 billion in 2021 financial year to N33.48 billion last year.

The growth was driven by a 17.29 per cent premium growth in Gross Premium Written in the Life insurance business, which moved from N12.01 billion in 2021 to N14.09 billion in 2022 and a 12.17 per cent increase in non-life business from N17.28 billion in 2021 to N19.39 billion last year.

The Chairman of the underwriting firm, Dr. Akin Ogunbiyi, made this known at the firm’s Annual General Meeting (AGM) in Lagos.

Ogunbiyi stated that despite the challenges faced within the operating environment in Nigeria last year, the Group’s balance sheet remains robust, with a total asset of N92.95 billion representing a 10.95 per cent increase from N83.78 billion in the year 2021, an increase in insurance contract liabilities by 11.21 per cent from N23.46 billion in 2021 to N26.09 billion in 2022.

He noted that the investment contract liabilities grew by 11.02 per cent from N30.18 billion in 2021 to N33.51 billion in 2022, while shareholders’ funds increased by 16.12 per cent from N18.41 billion in 2021 to N21.38 billion in 2022.

Ogunbiyi submitted that the group also recorded a 28.08 per cent increase in net premium income from N22.46 billion in 2021 to N28.76 billion in 2022.

He said: “Adverse claims experience and underwriting expenses resulted in increases of 9.31 per cent and 25.36 per cent, adding that net benefits and claims increased from N10.81 billion in 2021 to N11.81 billion in 2022, while underwriting expenses increased from N7.06 billion in 2021 to N8.86 billion in 2022. Despite these increases in claims and underwriting expenses, the group recorded a tremendous increase of 88.24 per cent in the underwriting profit of N8.37 billion in 2022 as against N4.45 billion in 2021.

“Implementation of various investment strategies resulted in an increase in the Groups investment income by 60.60 per cent from N1.46 billion in 2021 to N2.34 billion in 2022. These investment strategies resulted in the Group’s operating profit of N3.49 billion in 2022 as against the loss of (N5.54billion) in 2021 caused by the negative impact of the economic variables on the investment outlook of fair valued financial instruments,” he said.

He said the year holds great hope for the industry with opportunities, adding that life business will continue to lead the growth as the industry unleashes the locked potential in our population for premium generation.

“The increase in the minimum rate for motor insurance business is also expected to boost growth in general business. The industry is susceptible to the interest rate regime and with the increase in the MPR from 16.5 per cent to 17.5 per cent; the investment income is expected to witness growth with more investments in money market instruments.

He said the Group would go live on the new core insurance software in the year, stressing that this milestone would mark the conclusion of the implementation of the firm’s ICT Transformation programme (Project Efficiency).

The Managing Director/Chief Executive Officer, Olufemi Asenuga, noted that the company expects its business lines to deliver growth and profitability in the 2023 financial year, adding that they remain confident in the medium and long-term prospects for a stronger and better-positioned Mutual Benefits Assurance Plc.

 “To our shareholders, you have kept fate with us, you have persevered with hopes of returns in the form of dividends. I am not impervious to your yearnings,” he said.

He reassured shareholders that he and his colleagues would continue to work towards meeting and surpassing their expectations in the coming years.

Asenuga expressed gratitude to the Mutual Benefits employees, who he said, are commited to serving their stakeholders.

Sanlam General Insurance Nigeria Limited has launched a USSD Code of Confidence that allows customers to resolve third-party insurance claims on road emergencies.

The company, in a statement, said the Code aims to eliminate unnecessary delays.

The Managing Director/Chief Executive Officer, Sanlam General Insurance, Bode Opadokun, stated that the solution is the first of its kind in Nigeria.

He said customers could use the simple and user-friendly *1056# USSD code on their mobile phones to initiate third-party claims, noting that customers receive prompt assistance and support during unexpected events and accidents involving third parties.

He said: “We are delighted to introduce this Code of Confidence which revolutionises the way our customers can access third-party claims. At Sanlam, we understand the importance of convenience and speed in the claims process. With this innovative service, we aim to provide our customers with a seamless and efficient experience at any time of need.”

The company’s Marketing  and Corporate Communications Manager, Ajibola Liyide, who statement added: “Sanlam’s Code of Confidence is available to  Sanlam Nigeria motor policyholders, making it accessible to a wide range of customers across the country.

“The service is part of Sanlam’s ongoing efforts to leverage technology and innovation to enhance the customer experience and provide timely support when it matters most.’’

Workers and retirees are investors in SUKUK, NDIF, Africa Plus and other infrastructure fund in the country, with their pension fund invested by their Pension Fund Administrators (PFAs), The Nation has learnt.

Findings by the newspaper show that the PFAs as at March, this year invested N157.34 billion, representing 1.01 per cent in SUKUK Bonds.

They also invested N123.36 billion in Infrastructure Funds, representing 0.79 per cent of the pension fund; invested; N9.91 billion Supra-National Bonds, representing 0.06 per cent while Real Estate got N218.30, representing 1.40 per cent.

These investments subsequently yield returns for the investors who in this instance are workers and retirees under the CPS.

The Chief Executive Officer, Pension Fund Operators Association of Nigeria (PenOp), Oguche Agudah in an  interview said pension funds had been helping to develop infrastructure across the country.

This has been done through investment into infrastructure funds like SUKUK, Africa Plus, Infra Funds, among others.

He affirmed that the investment subsequently yield returns for pension the contributors of the CPS.

On the projects where pension fund are invested, Agudah: “We have invested in a number of hostels, power plants, roads and many other infrastructures across the country.

“There is also the NIDF infrastructure fund. This fund has invested about N50 billion in Infra Fund.

“We invested billions in SUKUK and so most of the roads SUKUK is building are pension fund money invested by PFAs to generate good return for contributors in their Retirement Savings Account (RSA).”

He further stated that PFAs will be making more investments in infrastructure this year.

He however noted that the PFAs are looking to invest in impact focused funds but transparency and structure are key.

Meanwhile, earlier in the year, the Nigerian Exchange Limited (NGX)l listed Africa Infra Plus Fund (AIPF I), a N20.5 billion closed-end infrastructure fund.

Co-managed by Africa Plus Partners Plc, and Capitaltrust Investments & Asset Management Limited, AIPF 1 is Nigeria’s first Carbon+ (ESG-focused) naira-denominated infrastructure fund to be listed on the Exchange.

AIPF 1’s structure is a pool of equity and quasi-equity investments in Carbon+ infrastructure projects that promote sustainable development including, but not limited to roads, power, water supply, wastewater management, ports, and airports. The Fund also acquires the shares and other investment instruments issued by socially responsible entities carrying on infrastructure business or executing infrastructure projects.

The Chairman, Africa Plus Partners, Anhad Narula said: “This is a sustainable infrastructure fund that specialises in carbon mitigating infrastructure investments.’’

“The fund, whose investors include ordinary Nigerians via their pension fund administrators, is committed to investing in sustainable infrastructure businesses that align with the global energy transition and move towards cleaner sources of energy and efficiently run, sustainable infrastructure and utility services.”

Managing Director, Africa Plus Partners Plc, Adeniran Ajakaiye added, “With this listing, we aim to demonstrate the highest levels of good governance and transparency, as we continue to deliver active returns to shareholders, whilst addressing Nigeria’s ‘missing middle’ infrastructure gap.

“AIPF aims to address the imbalance between the need for infrastructure development and the concerns about environmental and social impact by investing in projects that meet strict ESG criteria”, he added.

SUKUK, an Islamic bond is a strategic initiative by the Federal Government to support the development of infrastructure, promote financial inclusion and deepen the domestic securities market. It is structured in such a way as to generate returns to investors without infringing Islamic law that prohibits interest. Sukuk is said to be Shariah compliant because it eliminates the interest elements that are associated with a conventional bond.

AXA Mansard, ​​a member of AXA, a global leader in insurance and asset management has partnered with Berkshire Finance Company Limited (“Berkshire”), a finance company to offer a flexible payment option that allows customers to pay their motor insurance premiums monthly, rather than the traditional annual payment method.

The company made this known during the launch of the service at their Head Office in Lagos.

By introducing this new monthly payment option, AXA Mansard aims to make motor insurance more accessible and affordable for its customers.
The company understands that many people find it difficult to pay for their motor insurance in one lump sum and that monthly payments can be more manageable for many individuals and families.

With the new monthly payment option, customers can spread the cost of their motor insurance to a maximum tenor of 10 months, making it easier to budget for and manage their finances.
The service is available to both new and existing customers and it is easy to access.

“We are excited to launch this new service for our motor insurance customers,” said Jumoke Odunlami, AXA Mansard’s Chief Customer and Marketing Officer.
She said: “We understand that paying for motor insurance can be a challenge for many people, and we want to make it easier for our customers to access the cover they need to protect themselves and their vehicles.”

Read Also: AM Best affirms Credit Ratings of AXA Mansard Insurance

Also about the service, Mr. Adetola Odusote, the Chief Operating Officer of Berkshire noted: “We are excited to have partnered with AXA Mansard to champion this innovative product offering. We believe that this initiative will provide Nigerians immediate access to annual insurance cover at a minimal current out-of-pocket cost and align insurance premium payments with their personal cashflows considering the current economic realities.”

To take advantage of the new monthly payment option, customers can simply select the option when they purchase their motor insurance policy online or walk into any of AXA Mansard’s offices to get started.

Berkshire is a Finance Company duly licensed by the Central Bank of Nigeria to offer loans, investments, and advisory services. The company is set to play complementary roles to commercial banks with a focus on offering financial intermediation, strategic advisory solutions, and high-yielding investment opportunities targeted at individuals and Micro, Small, and Medium Enterprises.

AXA Mansard is registered as a composite company with the National Insurance Commission of Nigeria (NAICOM).

The Company offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering asset/investment management services and health insurance solutions through its two subsidiaries – AXA Mansard Investments Limited and AXA Mansard Health Limited, respectively. The parent company was listed on the Nigeria Stock Exchange in November 2009.

African smallholder farmers are largely uninsured, with only one per cent of them covered by insurance,  the African Insurance Pulse 2023 have stated.

The African Insurance Pulse, a report by the African Insurance Organisation (AIO), hinted that 99 per cent of African smallholder farmers are uninsured.

The report stated that agricultural insurance coverage in Africa varies from country to country.

It further stated that the majority of agricultural insurance premiums are generated by few African markets.

In particular, markets in southern Africa are more developed, partly because of the various structures of the agricultural sector, which include large commercial farms.

It said with an estimated premium volume of over USD 100 million, South Africa is by far the largest agricultural insurance market on the continent, followed by Morocco and Botswana, whose markets generate between USD 20 million and USD 40 million in premiums.

The only other two markets with premium volumes in excess of USD 10 million are likely to be Nigeria and Zambia, it stated.

Read Also: Zulum condemns killing of 8 farmers by ISWAP insurgents

It, however said, most African markets are characterised by subsistence or smallholder farmers.

The report read: “For them, agricultural  insurance  secures  livelihoods  and  primarily  offsets  the  risks  associated  with  weather variability. This risk mitigation improves farmers’ access to credit and thus to agriculture.”

The report recommended that to further improve food security in Africa, African governments should provide financial support for the development of agricultural insurance markets in emerging economies.

“In addition to premium subsidies,  governments  can  support  the  sector  by  improving  the  accuracy  of  data  on  the  sector, enhancing financial  education  or providing catastrophe  reinsurance. 

“Besides the government,  other institutions such as banks, input suppliers or community organisations may serve as aggregators or enablers of agricultural insurance by providing agricultural extension services, including training, credit, distribution  of  seeds,  fertiliser  or  herbicides, organising  cash  crop  exports or  facilitating  access  to finance.

“Another important factor in promoting the sustainable development of agricultural insurance is the need for a regulatory framework that encourages growth and innovation in the sector. Such a framework should promote flexible product design, capacity building and public awareness, risk-based pricing, clarity and consistency in regulation, and cooperation among stakeholders to support the growth and sustainability of the sector,’’ it added.

FBS Reinsurance Limited has recorded N16.58 billion gross written premium (GWP) in the 2022 financial year, its Chief Executive Officer, Mr. Fola Daniel has said.

He stated that the GWP grew from N7.90 billion in 2021 to hit N16.58 billion in 2022, indicating 108.9 per cent growth.

He made this known during a briefing organised by the reinsurer on the sidelines of the just-concluded 49th Africa Insurance Organisation (AIO) Conference and General Assembly in Algeria.

Daniel said the company’s GPW grew from N7.906 billion in 2021 to N16.58 billion in 2022.

He said despite that the company is only in its second year of operation, its profit after tax rose to N2.49 billion at the end of last year.

He added that the company closed with assets in excess of N26.29 billion from N15.805 billion achieved in 2021, representing 66.3 per cent increase.

He said: “Our performance is fair, but we can do a lot better. The market has been supportive to us and we have enjoyed tremendous goodwill beyond our imagination.

“There is still a missing link in terms of capacity.There is surplus capacity to take but the number of reinsurers don’t have enough capacity. We still have the huge oil and gas, aviation but there is depth of capacity in the market.

”The existing companies can build more capacity by adding additional capital, more capacity can also come in as a result of new entry.’

On the value FBS Re is adding to the market, he said: “When we came in, we had capacity gap and one of the values we brought to bear is reducing the capacity gap.

“Secondly, FBS Re means ‘For Better Service’. We want to do things differently from how other reinsurance companies do their business. For instance, it can take other companies two months to respond to cash call, we can’t afford that, we respond to our cash call in 48 hours after documentation are okayed.

“Thirdly, when you offer us a business, it will either be yes or no. You can give a yes in one day, two days or even three days, but in our own case, we must give a yes or no within one hour. This will enable the broker or the insurer to find quick alternative if we say no,” he added.

FBS Re was licensed on November 25, 2020 by the National insurance Commission (NAICOM) and commenced operations on January 1, 2021.

Retirees have continued to choose life annuity as their mode of receiving pension with a total of 3,505 retirees choosing annuity plan in the first quarter of 2023.

This was made known by the National Pension Commission (PenCom) in its first quarter report.

To this effect, insurance companies offering Life Annuity business received N26.54 million premium for the from Pension Fund Administrators (PFAs).

Aside from this, the companies received a lump sum of N15.23 million as approved payment to the retirees.

Read Also: Pension fund operators strategise to include 49m Nigerians in MPP

In the same vein, the Commission further approved 6,415 requests for retirees to draw pension through programmed withdrawal mode during the quarter under review.

The retirees received a total lump sum of N33.62. million while their total monthly pension amounted to N481.46 million.

During the quarter under review, approvals were granted for payment of death benefits amounting to N15.79 million to the legal beneficiaries and administrator of 2,562 deceased employees and retirees.

This comprised of 2,232 public sector and 845 private sector employees and retirees.

On the other hand, approval was granted for enbloc payment of retirement benefits to 4,059 retirees, which totalled N2.54 million. According to the Commission, these were retirees whose RSA balances could not provide a monthly pension of at least one third of the prevailing minimum wage of N30,000.

Policyholders are clamouring for subvention for premiums of about five years, without a claim.

The President, Coalition of Associations in Computer Village,Ikeja, Lagos, Timi David, stated this during a visit by reporters to him.

Although findings revealed that only few insurance firms grant discounts, especially for comprehensive policies, most underwriters are yet to adopt this model.

The subvention, which he said, should come in form of cash give-back or discounted rate in the subsequent years, noted that this would entice unclaimed policyholders who have the notion that insurers are collecting free money from them.

He said: “For the past five years, I have renewed the insurance of my car and didn’t have any reason to claim because I wasn’t involved in any accident. So, I would expect my insurance company to give cashback or discounted rate to me the next time I am renewing my policy.

“If this is done, I believe it will persuade more uninsured Nigerians to subscribe to insurance policies as most people still see insurance as a scam because of the model of not compensating those who never had reason to submit for claims.”

While commending the response time of insurers to claims payment, he said some members of the association were involved in an accident last year and because the vehicle was comprehensively insured, they got claims within a short time of filling for it, urging them to keep it up.

He however believes the challenge of insurance is low awareness, calling on underwriters to increase their products visibility and increase awareness such that Nigerians are better informed on what a policy cover and, at what point, he or she can claim.

David, who urged businessmen and women, traders among others, to insure their shops and offices through theft and burglary insurance, among others, said this mitigation mechanism would ensure that goods in the shops and offices were protected and that the insured suffer no financial loss when disaster struck.