The Nation Newspaper

Category: Insurance

  • Royal Exchange appoints Banmonre as GMD

    By Omobola Tolu-Kusimo

    The Board of Directors of Royal Exchange Plc has announced the appointment of Mr. Olawale Banmore as the new Group Managing Director.

    The Board also appointed John Iwuajoku as the Group Executive Director, Operations.

    The company stated that both appointments are effective, December 4, 2019.

    Its Chairman, Board of Directors,  Mr. Kenneth E. Odogwu in a statement, said  Banmore, with his extensive experience and knowledge of the insurance industry, will seek to drive the continuous growth and profitability of the company and make the group a market leader in insurance and financial services in Nigeria, while Iwuajoku will focus on digital transformation, corporate restructuring and operational efficiency across the group.

    According to Odogwu, these two appointments were done in order to ensure that Royal Exchange continues to seek and take advantage of the numerous opportunities that abound in the financial services sector.

    Besides, the new GMD and GED will work together and oversee the five subsidiaries in the Royal Exchange group and ensure all companies are positioned for growth, expansion and profitability.

    Read Also: FG appoints new CMD for Aminu Kano Teaching Hospital

    Banmore is a seasoned insurer with over 27 years on the job experience in the insurance industry. He is a graduate of Sociology from the University of Ibadan and holds a Master’s Degree in Managerial Psychology from the same institution.

    He is an associate member of the Chartered Insurance Institute of Nigeria (ACIIN); a member of the Africa Insurance Organisation; a member of the Nigeria and South Africa Chambers of Commerce and an alumni of the Lagos Business School.

    He joined the company in 2003 and acted in various managerial capacities within the company. He was the Managing Director of Royal Exchange Prudential Life Plc, a subsidiary of Royal Exchange Plc from 2011 to December 4, 2019.

    Prior to this appointment, he was seconded to Royal Exchange Plc by the Board of Directors to oversee the affairs of the Royal Exchange Group in October, 2018, while still being the Managing Director Royal Exchange Prudential Life.

    Iwuajoku is a  finance expert with over 23 years professional experience in the financial services industry. He joined the company last year as the Chief Operating Officer.

    Before joining the company, he was Vice President at First City Monument Bank, Nigeria where he held several top positions, which included Head, Branch Coordination, Head Service Management, Head Shared Services, Head Card and Electronic Banking.

  • AIO reaches out to regional associations, local markets

    By Omobola Tolu-Kusimo

    Within the framework of the implementation of the new strategic plan of the African Insurance Organisation, the Secretary General, Mr. Jean Baptiste Ntukamazina, has embarked on a tour to some regional organisations and local markets.

    A  statement from the AIO Secretariat stated that Mr. Ntukamazina is in Dakar, Senegal to hold talks with officials of FANAF as well as the local insurance market.

    The statement read: “His outing falls in line with enhancing the advocacy, market building and networking roles of the African Insurance Oragnisation as prescribed by the new strategic plan.

    “The AIO Secretary General’s visit will enable him to carry out an on-the-spot assessment of the needs and expectations of the various stakeholders vis-à-vis the organisation, as well as get proposals on the best ways the African Insurance Organisation can better serve their interest.

    “The Executive Committee of the African Insurance Organisation recently adopted a new strategic plan whose aim is to make the AIO contribute to increase Africa’s insurance penetration, advocate for its members, become a centre of competence for the African insurance industry and double its share of members among African insurers”, it added.

  • Universal begins recapitalisation process

    By Omobola Tolu-Kusimo

    With the approval obtained by the board and management of Universal Insurance Plc, it has got shareholders approval to raise capital through Right Issues, Share Reconstruction, additional equity capital to the maximum limit of the authorised share capital to meet the N10 billion recapitalisation requirement.

    This will be done whether by way of special placement or public officer with or without a preferential allotment/or rights issue or a combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company and subject to the approval of the regulatory authorities.

    In a statement, the Acting Board Chairman of the company, Mr Anthony Okocha, said the board had sought and obtained  the shareholders’ approval at its 49th Annual General Meeting (AGM)s in Lagos.

    He said: “The company is set to deploy in motion, strategies that would see it raise the N10billion recapitalisation requirement as prescribed by the National Insurance Commission (NAICOM) for the general business category, in the ongoing recapitalisation exercise,.

    ‘’In the event of over subscription of the offer/issue to capitalise, the excess money and allot additional shares to the extent that can be accommodated by the company’s unissued share capital subject to the approval of the regulatory authorities and that the proceeds should be used for the same purpose as the offer/issue.

    “Universal Insurance has over N30 billion registered shares and out of which,16 billion has been issued while 14 billion is still warehoused and could be brought up for issuance if need be. The company has in its kitty, N6.5 billion and would need N3.5 billion to make up for recapitalisation requirement as a general business insurer,” he said.

    On steps to meet up with the exercise and beat the June 30 2020 deadline, Okocha said: “More discussion is ongoing but could not be discussed prematurely. We are also looking at Right Issues, the company is in discussion with core investors and probable foreign influence into your company.”

    On  financials, he said notwithstanding the shape and colour of the global economy in 2018 and its effect on the macroeconomic landscape in Nigeria, the company recorded about 45per cent increase in gross written premium (GWP) from N753million in 2017 to N1.689billion in 2018. Claims expense decreased from N463million in 2017 to N263million in 2018.

    However our underwriting expense rose from N166million in 2017 to N452million in 2018, he added.

    Okocha said it is the intention of the board and management to intensify the corporate strategy in order “to identify the needs of potential customers, their behaviour and culture and have an attentive ear to market-feedback so to create products that will address them.

  • African Alliance records N5b premium, pays N6b claims

    By Omobola Tolu-Kusimo

    African Alliance has recorded a 68 per cent premium income growth from N3 billion at the end of third quarter 2018 to N5.12 billion at the end of third quarter 2019, the Managing Director, Funmi Omo, has said.

    She made this known at a press conference held at the company’s headquarters in Lagos.

    She stated that the company also paid claims of about N6 billion to keep up with its promises of maintaining customer amazement.

    On the company’s recapitalisation plans, she said the National Insurance Commission (NAICOM) has given a ‘No Objection’ to our plans which means we are on course.

    She said the company has also continued to defy the odds with a string of impressive performances that have seen the 59-year-old insurer stabilise its business and earn positive reviews from industry watchers.

    While listing the giant strides the firm has made in less than two years, she restated the management’s commitment to sustaining the upward growth trajectory across all metrics.

    She said: “Ours is a business that has seen it all and survived it all. Our position in just two years compared to now is testament to the unstinting leadership and guidance of our Board, the relentless drive of the executive management and a most committed and flexible staff who never shies away from challenges in any form.

    “In line with our commitment to build a formidable workforce and grow the overall brand image, the company made key appointments into its management cadre. Akinola Akinwole was appointed as Head, Human Capital and Bankole Banjo as Brand, Media and Communications Manager. Between Akinola and Bankole, we have two of the brightest minds in their fields.

  • NAICOM laments brokers’ concentration in cities

    By Favour Obiemeka

    The National Insurance Commission (NAICOM) has lamented the over concentration of brokerage firms in major cities and reliance on government accounts.

    The Acting Commissioner for Insurance, Mr. Sunday Thomas, who spoke when the delegation of the Nigerian Council of Registered Insurance Brokers, led by the President, Mrs. Bola Onigbogi, paid a visit to the commission in Abuja, said insurance companies also concentrate in major cities and rely on government accounts.

    He stated that there would not be effective enforcement of compulsory insurance in the hinterland with poor presence of underwriting and brokerage firms.

    Read Also: NAICOM okays new directors for Standard Alliance Insurance

    He called on brokers to establish presence in all the nooks and crannies of the country to accelerate insurance penetration and financial inclusion in the country.

    The commissioner said the vision to have the nation’s critical population accept and patronise insurance services would only be achieved if brokers who are professional intermediaries extend more of their operations to remote areas of the country.

    While promising the support of NAICOM in accelerating insurance growth by collaborating with all insurance stakeholders, the commissioner advised operators, particularly brokers to be more creative in their product development initiatives so as to make insurance first line of consideration by Nigerians, irrespective of their location and financial status.

    Responding, Mrs. Onigbogi said insurance penetration is the cardinal focus  as NCRIB President.

    She noted that the issue of enforcement of insurance in Nigeria has always been on demand and supply side.

  • Recapitalisation: Operators in secret meetings as deadline nears

    By Omobola Tolu-Kusimo

    As the countdown to June 2020 recapitalisation deadline drops to six months, many operators are yet to declare merger and acquisition partners.

    Aside from few companies that have approached the capital market to raise funds, many others are creeping around in silence.

    As at today, only WAPIC Insurance Plc, LASACO Assurance Plc, Consolidated Hallmark Insurance Plc, AIICO Insurance Plc, Sovereign Trust Insurance Plc, Royal Exchange Plc, Linkage Assurance Plc, NEM Insurance Plc, among others are meaningfully pursuing their recapitalisation project   .

    The National Insurance Commission (NAICOM) had ordered insurance companies with composite licence to upgrade their capital base from N5 billion to N18 billion; Life insurance firms were required to increase their minimum capital requirement from N2 billion to N8 billion, amounting to 400 per cent increase in their capitalisation.

    Read Also: Insurance recapitalisation to cost N77b

    Similarly, General insurance companies are to raise their capital base to N10 billion from N3 billion, even as Reinsurance firms will now need N20 billion capital base to operate Reinsurance business in the country.

    The Nation, however, gathered that while some are exploring business combination, some are interested in outright acquisition. But all of these are still shrouded in secrecy.

    Deputy Director and Head Corporate Communications, Rasaaq Salami however said a handful of the companies have almost completed their processes of recapitalisation.

    He stated that some are complaining but it is normal to find those who will have issues with the process.

    He maintained that the commission is moving on with the plan and the industry will be better for it come 2020.

    He noted that the insurance industry witnessed its last recapitalisation in 2007 and despite the astronomical increase in value of insured assets, consequent exposure to higher level of insured liabilities and operating cost of insurers, the same capital continued to rule in the insurance industry.

    He said: “The recapitalisation plan should include among others; capital status of the companies as at the last audited financial statements; board resolution on how to comply with the directives; detailed action plan on how the funds for the recapitalisation are to be sourced with timeline and deliverables.

    “Companies intending to seek funds from the capital market are required to submit their plan of action on a file-and-use basis and companies that intend to merge or acquire another should submit their proposal after which they must comply with Section 30 and 31 of the Insurance Act 2003.”

  • Insurance College partners international organisations

    THE College of Insurance and Financial Management (CIFM) has partnered with various international organisations to boost its status and meet the industry’s present and future requirements.

    The College Rector, Mrs Yeside Oyetayo, made this known while delivering an address at the 5th CIFM Graduation of Diploma Programmes Ceremony in Lagos where 10 students graduated.

    She listed some of the international organisations to include Impact Insurance Facility of the International Labour Organisation (ILO), Switzerland, GIZ, a German trade facilitation agency and the Centre for Financial Regulation and Inclusion, Cenfri, South Africa.

    She said: “The efforts of the college have not gone unnoticed and its appointment as the Bancassurance officers in the industry was an attestation to this fact. We recognise that the Nigerian insurance industry requires specific skills to propel it to the next level and take its rightful place in economic development.

    “Therefore our mission is to provide insurance training of global standards to meet the industry’s present and future requirements’’.

    The rector, however, explained that the diploma programme which is designed to prepare students for a successful career in insurance was a rich programme that enables students complete their professional examinations within a very short period.

    In his opening remarks, Mr Eddie Efekoha, President, CIIN, while congratulating the graduands, urged them to keep learning, trying, accomplishing and keep moving forward in the great journey of life.

    Efekoha, represented by Sir Muftau Oyegunle, Chairman, Governing Board of the College, said that the institute was committed to the development of the college, as evident in ongoing construction work.

    Oyegunle on his part lauded the National Insurance Commission (NAICOM) for its recognition of the college’s capacity to deliver training of global standards to the industry.

  • Capital Express holdings to sell its foreign operations

     Omobola Tolu-Kusimo

     

    A CAPITAL Express Holdings is selling its African operations with the exception of its subsidiary in Kenya, the Group Managing Director, Capital Express Holdings, Mr Yinka Obalade, has said.

    Obalade, who made this known in a statement, stated that the sale is to focus and strengthen its Nigerian operations spanning Insurance, Asset Management, Investment Banking, Commodity Trading, Trusteeship and Franchising.

    According to him, the sales of its overseas assets is expected to be concluded by the first quarter of 2020.

    He said the board at its just concluded Strategic Retreat/Board Meeting held in Lagos granted approval to utilise the proceeds in line with the strategic goals of the organisation.

    He disclosed that the goals include the recapitalisation of its life Insurance operations in Nigeria through the acquisition of firms that will further increase the capacity of the company to meet the recapitalisation requirement as directed by the National Insurance Commission (NAICOM).

    He said: ‘’The acquisition will be an addition to the funds which the Holding Company is injecting in the first instance into the company. Our other areas of business like Asset Management, Investment, Banking, Trusteeship e.t.c. would also be beneficiaries of the funds towards repositioning the entire brand for greater competitiveness in all its areas of operations.

    “The sales process of some of the companies are already concluded while others are being finalized to ensure they that the deadline of first quarter 2020 is met. The Board discussed other options before arriving at the conclusion to sell its overseas operations. The board having reviewed all options urged the group to ensure higher return on for investors and the funds injected in these companies should make it a brand to be reckoned with in its areas of operations”,he added.

     

  • Brokers urge Fed Govt to secure railroad system with insurance

    THE Federal Government needs to ensure the huge investment in railroad sector is safeguarded by embracing insurance, the President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Dr. (Mrs.) Bola Onigbogi, has said.

    She spoke at the December 2019 Edition of NCRIB Members Evening hosted by African Alliance Plc in Lagos.

    While commending the government for the enhancement of public transportation in Nigeria through the strengthening of the nation’s railroad system, she said that as a critical stakeholder in the economy, brokers under the auspices of the NCRIB are appealing to the Federal Government to insure all its assets properly to curb waste.

    She said: “We will like to first commend the Federal Government for the enhancement of public transportation in Nigeria through the strengthening of the nation’s railway system. Aside from aiding commerce and reducing road accidents, the railway system will also create more jobs for Nigerians.

    “However, the government is hereby implored to ensure that the huge investment in that sector is safeguarded through embrace of insurance. This, to us, is one of the prudent ways to protect this great national asset and guarantee that it endures”.

    She also applauded the government over the closure of the country’s borders with her neighbouring countries, stressing that to all intents, the move was quite salutary as it would protect local production of goods and services.

    She further advised the government to use the opportunity of the closure to encourage the acceleration of local capabilities so that its strides towards self-sufficiency would be guaranteed.

    “It is a fact that no country could wholly depend on foreign countries for survival, but this must come with utmost sincerity on the part of the government,” she added.

    The Managing Director of African Alliance Plc, Funmi Omo, restated the management’s commitment to sustaining the upward growth trajectory across all metrics.

  • ‘STI rights issue subscribed by 75%’

    THE Rights Issue Offer of Sovereign Trust Insurance Plc received 72.50 per cent subscription, the Managing Director, Mr. Olaotan Soyinka, has said.

    Soyinka, who made this known in a statement available to journalists, said the Securities and Exchange Commission, (SEC) has given approval to the underwriting firm to make public to the company’s shareholders and other related parties the result of the offer which ended on August 21, after it was extended at the expiration of its initial closing date of July 31, 2019.

    According to him, the company had placed on offer to the company’s shareholders a total of 4,170,411,648 billion ordinary shares of 50 kobo each at 50 kobo per share on the basis of (1) new ordinary share for every (2) ordinary shares of 50 kobo each held in the company as at the close of register on January 15, 2019.

    At the close of the offer period, a total of 110 acceptance forms for 3,053,642,718 billion ordinary shares of the Rights Issue were received out of which, 108 forms were found to be valid and accepted while two application forms were rejected as the buyers did not qualify for the shares as at the qualification date.

    Read Also: Sovereign Trust Insurance boosts capital with N1.15b

    He said: “In all, the Rights Issue offer was 72.50 per cent subscribed which has been considered quite commendable by industry watchers considering the bearish nature of insurance stocks in the market in recent times. A further breakdown of the basis of allotment shows that 99 shareholders fully accepted their rights totaling 1,262,022,678 billion ordinary shares, nine shareholders with provisional allotment of 25,573,204 million ordinary shares partially accepted their rights totaling 6,430,000 million ordinary shares while renouncing a total of 19,143,204 million ordinary shares. No applications were traded on the floor of the Nigerian Stock Exchange during the period of the offer.

    “The company has set a growth agenda which is aimed at positioning the insurance company as one of the top players in the industry, particularly, as the industry prepares for another round of recapitalisation in the year 2020.  The company is committed to creating exceptional value to all its shareholders.”

    Spokesperson for the company, Mr. Segun Bankole added that a total of 2,882,815,766 ordinary shares were fully renounced, while a total of 19,143,204 ordinary shares were partially renounced, bringing a total number of renounced ordinary shares to 2,901,958,970.