The Nation Newspaper

Category: Insurance

  • AXA Mansard supports breastfeeding

    AXA Mansard, a member of AXA, the global leader in insurance and asset management, has commemorated the World Breastfeeding Week.

    The company held a breakfast session/masterclass for women at its head office in Lagos.

    The Chief Executive Officer of AXAMansard Health Limited, Mr. Tope Adeniyi, said the importance of breastfeeding could not be over emphasised as it has various benefits for a baby and  contributes to the well-being of her mother.

    He said: “Breast milk is the ideal food for babies. It contains all the necessary nutrients for a baby’s healthy growth, contains antibodies that help protect babies against illnesses such as pneumonia and diarrhoea and it is linked to the prevention of Sudden Infant Death Syndrome (SIDS); it is also readily available and cost effective’

    “In line with 2019’s theme for WorldBreastfeeding Week – ‘Empower parents, enable breastfeeding’, it is important for all parents to be included in the process of breastfeeding and be informed on what to do to make it a great journey. We should all work together to create enabling environments everywhere for breastfeeding to happen naturally and optimally. At AXA Mansard, we will continue to be at the forefront of making the world a healthier place.”

     

  • CIIN, others seek national rebirth

    To achieve rapid economic development, experts have called for the promotion of values and national rebirth.

    They made the call at tthe 60th Anniversary Symposium/Public Lecture of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos. The event had as theme, “The Nigerian state and values: Need for alignment”.

    The experts examined the challenges and progress made in  the industry and proffered solutions to how the economy could emerge strong from its  challenges.

    The guest speaker, Biodun Fijabi, called for a renewal on the national identity, stressing that the nation needs to work on redeeming its negative image abroad.

    He stated that over 40 countries have discriminatory visa policies against Nigerians, adding that this is not good for national development.

    He said: “Nigeria needs to have good identity to move forward and this is why we have to shun corrupt tendencies. We must understand that when corruption reigns, all sectors of the economy suffer.

    “There is need for values to be inculcated in the younger generation through schools and homes because Nigeria’s future is as good as the direction it focuses the attention of the young one.”

    Chairman of the event, Olola Olabode Ogunlana, called on all arms of the industry to close ranks, work as a team and intensify efforts to educate Nigerians on the need for insurance.

    According to the former CIIN president, the industry should be more visible and articulate, while operators should be aggressive in marketing their products.

    He charged the operators to do more in creating awareness, stressing that as long as Nigerians do not see or are not convinced of the relevance and value of insurance, the penetration of insurance would remain low.

    CIIN President Eddie Efekoha, who was excited over the progress made by the institute, pledged to continue to create new ways of taking the institute and industry to lofty heights.

    Group Chief Executive Officer, Emerging Africa Capital, Mrs. Toyin Sanni, urged operators to prioritise integrity, adding that every Nigerian should place value of selflessness.

    The Public Affairs Project, Manager, Nestle Nigeria, Mrs. Gloria Nwabuike, called on insurers to intensify their marketing efforts and should strive more to meet their customers’ needs.

  • ‘Why traders do not buy insurance’

    LOW purchasing power seems to be hindering traders from buying insurance policies that can protect their business, findings by The Nation has shown.

    Some of the traders, however, said they buy third party motor insurance because, according to them, it is compulsory for them to have it.

    The Nation visited some markets to ascertain the level of insurance awareness.

    A spare part dealer at Ladipo Market, Mushin, Lagos, Mr Anieke Levi said he was aware of that he needed insurance for his business.

    He urged insurance firms to make the policies affordable for market men and women.

    He said while he had not bought any insurance policy, his car is insured.

    Read Also: Motor insurance a must, says Insurers Committee

    He noted that he bought motor insurance so that the police and vehicle inspection officers would not seize his vehicle driving on the road.

    Another trader, Valentine Anierobi said he could not afford to buy insurance.

    ‘’I struggle every day to make a living. Is it possible for me to buy insurance after struggling to make little money? Maybe, I will think of insurance when I am able to feed and clothe myself well,’’ he said.

    Mrs. Blessing Nweago does not believe in insurance.

    ‘’My business is okay, it doesn’t need insurance,’’ she said.

  • Prestige gets N4.79b premium

    Prestige Assurance Plc has posted a Gross Written Premium (GWP) of N4.792 billion in its 2018 financial year.

    This is coming just as the company sought the shareholders approval to increase the firm’s authorised share capital from N3 billion to N10 billion by creating 14 billion ordinary shares at 50 kobo which will rank pari-pasu with existing shares of the company, and he was granted the permission by the shareholders.

    The former Acting Chairman of the company, Sir Muftau Oyegunle, made this known at the firm’s 49th Annual General Meeting (AGM) in Lagos.

    He stated that the firm achieved an increase of 26 per cent performance with the N4.792 billion as N3.809 billion was recorded in 2017.

    He said: “The gross premium income stood at N4.66 billion, pre-tax N645 million while the total assets moved from N11.8 billion to N13 billion. Claims paid stood at N1.23 billion and a dividend of 3 kobo per share for 2018 financial year, was paid to shareholders.

    “The company’s board has taken certain steps to increase gross premium income, as well as retention capacity. The objective is to grow premium and profit margins including after tax through expanding and deepening the deployment of digital marketing; retail sales; strengthening portfolio of products and increasing physical presence across the nation by expanding network of micro-offices.

    Having secured the nod of the shareholders, he implored them to pick up their rights issues to enable the firm meet the new capital requirement.

  • Mutual assures shareholders on recapitalisation deadline

    The board of Directors of Mutual Benefits Assurance Plc has assured its shareholders that it will meet required capital base before the deadline set by National Insurance Commission (NAICOM), ahead of the June 2020 recapitalization deadline for insurance industry.

    The Chairman of the company, Dr. Akin Ogunbiyi gave this assurance during the company’s annual General meeting held in Lagos, that the board is determined to ensure that the company and it life subsidiary also meet the new capital requirement ahead of the June 2020.

    He said resolutions have been proposed to increase the authorised share capital from N10billion to N15billion and also to authorize the directors to raise additional capital for the company to ensure that the company  and her life subsidiary meets the requirement.

    On financial performance he said company recorded a net underwriting income of 13.9 billion for the year ended 31 December 2018. This represents a 19 per cent increase from the N11.77 billion recorded in 2017 for the Group.

    While gross premium written also grew by 13% from N14.03 billion in 2017 to N15.84 billion in the year under review. Net premium income stood at N13.47 billion representing an 18% increase from N11.46 billion in 2017, while profit after income tax stood at N1.149 billion; a 12% increase from 2017 figure of N1.02 billion.

    The 70% percent increase in claims paid over the 2017 figures impacted the company’s underwriting profit which dipped by 17% to N3.05 billion.

    The company paid claims amounting to N3 billion in the period under review. Motor claims were the highest, amounting to N1.10 billion, followed by fire which was N664 million, General Accident N330 million while Aviation risks attracted N441.90 million. Claims paid on other classes of business include Engineering N166 million; Oil and Gas risks N108.90 million and Marine N241.60 million.

    Speaking further on the claims he said “the claims paid shows our commitment to meeting our obligations to our esteemed customers.”

    According to him, the company has put in place systems and processes to ensure efficient claims service delivery.

    “We are committed to prompt settlement of all genuine claims, as this aligns with our mission statement of “Transcending the expectations of our customers for the satisfaction of their wealth protection needs through the provision of qualitative insurance and risk management services thereby creating values for all stakeholders.”

    “2019 is the third year of our five year strategy plan and we have made remarkable progress.  Our IT transformation will soon be completed which will take our service delivery level to greater heights with innovative customer centric solutions.”

  • AIICO’s gross premium hits N25.4b in H1

    AIICO Insurance Plc has reported gross written premiums of 25.4 billion in its unaudited half year 2019 financial results, up 32 per cent from the same period in 2018, Executive Director, Chief Operations Officer, Babatunde Fajemirokun has said.

    He spoke during a media parley with reporters at the company’s headquarters in Lagos.

    Fajemirokun said the growth is driven by continued solid performance across the major lines of business of the group: life and corporate and institutional businesses.

    He added that the performance is ‘’a demonstration of a focused implementation of our renewed strategy, notwithstanding the challenging operating environment”.

    He stated that in line with the renewed strategic aspirations for market leadership with focus on profitable growth, the company recorded a 42 per cent increase in Profit before Tax (PBT) of N3.11 billion, compared to N2.19 billion in half year 2018. Profit after Tax (PAT) also grew by 52 per cent to N2.94 billion, compared to N1.93 billion attained in half year 2018.

    He said: “Customer-centric product innovations, sustained investments and automation of our agency salesforce continues to yield dynamic results as we recorded strong growth in our retail life business, which grew by 47 per cent to N15.5 billion in the period under review from N10.6 billion in the preceding year. This is an increase of 14 per cent in our corporate and institutional business to N9.5 billion.

    “Within the period under review, the Group’s balance sheet improved with total assets growing by 24 per cent to N135 billion compared to N109 billion in December 2018. Also, noteworthy, is the growth in shareholders’ funds, which rose by 14 per cent to N16.6 billion from N14.5 billion.”

    Commenting on the new capital requirements for the insurance industry, he said, “AIICO has put adequate strategies in place that will ensure we not only meet the new capital requirement for a composite underwriter but also surpass same with sufficient solvency margins”.

    Going into the second half of the year, we remain committed to the execution of our strategic objectives whilst staying focused on our primary purpose of protecting our customers and delivering superior returns to shareholders. As we look to the future, we remain guided by our mandate to provide shared protection to every family and business, so they can live life with confidence amidst uncertainty.

  • Shareholders laud non-reappointment of Kari

    Some stakeholders have lauded President Muhammadu Buhari on the non-reappointment of  Commissioner for Insurance, Mohammed Kari following the expiration of his tenure on July 31.

    A major shareholder in the industry, Sunny Nwosu, said he is excited that Kari’s tenure is not extended. He appealed to the President to appoint an insurance professional who has antecedents in the capital market and the insurance sector.

    He believes such a person will feel the pain of shareholders even in the middle of recapitalisation.

    He said: “The person will know their problem and proffer good solutions. Without this kind of appointment, we are not likely to make headay in the sector.

    “On recapitalisation, I dont believe in his strategy. Insurance business can go on consurtium and it has to be profitable to shareholders before you begin to ask us to pump in more money. So, I see his strategy as giving away insurance companies

    ‘’The fact is that we want to strengthen the industry and we should recapitalise. But it should be a staggered one that will run between a period of like  five years”.

    Another shareholder, Adeyemi Olumuyiwa, said that Kari’s non appointment will save the industry from unnecessary embarrassment and disaster.

    “The first 4four years of his administration where filled with issues which never brought growth to the industry. His policies were not favourable to the industry’’.

    He added that most of the legacies left behind by former commissioner of insurance, Fola Dianel, have been abandoned.

    Kari handed over to the Deputy Commissioner, Technical, Sunday Thomas who is now the Acting Commissioner for Insurance.

    Thomas was appointed Deputy Commissioner for Insurance Technical by President Muhammadu Buhari on April 15, 2017.

    Prior to his appointment in 2017 as Deputy Commissioner in charge of technical matters at the Commission, Thomas held the position of Director–General at the Nigerian Insurers Association (NIA) for seven years from May 2010.

    He is a vastly experienced and knowledgeable insurance professional with over 35 years uninterrupted service to the Nigerian insurance industry. During these years, Mr. Thomas worked as a Director for 17 years at the National Insurance Commission from 1992 to December 2009 where at different times, he superintended over different departments in the technical division. He had also worked as an insurance operator for over 10 years and rose to the position of Assistant General Manager at AIICO Insurance Plc until he left in 1992 to join NAICOM.

  • WAPIC MD elected into CIIN Council

    Wapic Insurance Plc Managing Director Mrs Adeyinka Adekoya has been elected a Council member of the Chartered Insurance Institute of Nigeria (CIIN).

    The election and inauguration held during the just-concluded CIIN Annual General Meeting in Lagos.

    Read Also: Nigeria’s insurance capital requirement fair, says Ghana Commissioner

    Mrs Adekoya served in two CIIN committees for Education and Accreditation as well as the committee of the inaugural Mega Conference.

  • NAICOM to insurers, reinsurers: submit your recapitalisation plans

    The National Insurance Commission (NAICOM) has directed insurance and reinsurance firms to submit their recapitalisation plans to the Commission by August 20.

    This is coming as the deadline for firms to meet up with the commission’s directive to increase their capital narrows from 13 months to nine months.

    In May, NAICOM increased the minimum paid-up share capital of a life insurance firm to N8 billion, non-life N10 billion and composite insurance firms N18 billion and re-insurance firms N20 billion, up from N2 billion, N3 billion, N5 billion and N10 billion.

    NAICOM, in the new circular to all firms dated July 23, entitled Re: Minimum Paid Up Share Capital Policy for Insurance and Reinsurance Companies, and signed by the Director, Policy & Regulation Directorate, NAICOM, Pius Agboola, stated: “Insurers and Reinsurers shall submit their recapitalisation plan to the Commission on or before 20th August, 2019.

    “The plan should include a capital status of the company based on the above-referenced circular as at the last audited financial statements; Board resolution on how to comply with the directives; and detailed action plan on how the funds for the recapitalisation are to be sourced with timelines and deliverables.

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

    It continued: “The commission shall review and provide responses on the submitted recapitalisation plans on or before September 17. The review may require meeting with the Board and Management of each of the insurance company on its recapitalisation plan.

    ‘’Similarly, the Commission is engaging with other regulatory bodies for possible palliatives in addition to those being considered by the Commission.’’

  • LASACO donates N10m to Lagos Trust Fund

    To ensure that Lagos State remains safe, LASACO Assurance Plc has donated N10 million to Lagos State Security Trust Fund (LSSTF).

    LASACO Managing Director Mr Segun Balogun said the company iwas donating to the fund to help the organisation to continue providing the basic equipment to the security agencies in and around the state.

    He said the cash would go a long way to support to LSSTF  in its fight to ensure a crime-free state.

    Balogun pledged to be an ambassador of the LSSTF in the insurance industry, adding that there was the need for more organisations to support the fund.

    LSSTF Executive Secretary Dr. Abdurrazaq Balogun said it was becoming difficult for organisations to assist the fund.

    He stated that Lagos has about 9,400 roads that need to be secured.

    He said: “We believe that if we have just 1000 vehicles, that would be one vehicle to 900 roads; that is grossly insufficient. But if have 10,000 vehicles, it would be one to 90. The assets that we have are not enough but we will continue to manage the little that we have.

    “We urge other organisations that have not donated to the fund to make sacrifices for the security and prosperity that we all desire.’’