Category: Insurance

Royal Exchange General Insurance Company (REGIC) has declared a Gross Written Premium (GWP) of N14.20billion of the financial year ended December 31, 2022, reflecting a 10 per cent growth compared to the figure of the previous year.

The Chairman of the company, Mr. Ike Chioke, made this known at its 15th Annual General Meeting (AGM)  in Lagos.

Chioke stated that the accounts, which have been approved by the National Insurance Commission, (NAICOM), show that the company is on the path of profitability and sustained growth, as  financial indices are positive for the company and future results will position Royal Exchange General Insurance Company as a profitable enterprise in the insurance industry in Nigeria.

He said: “The total net claims paid to policyholders stood at N1.97 billion, representing a 43 per cent growth in paid claims, when compared to the 2021 figure. Underwriting profit increased marginally by  six per cent from N1.70billion in 2021 to N1.81billion for the period under review.

“Total assets for the company for the year under review was N32.30 billion with Shareholders Funds standing at N14.22billion at the end of the 2022 financial year.

“Profit before Tax (PBT) amounted to N.7 billion, and a Profit after Tax of N779 million was reported for the 2022 financial year, representing a 68 per cent growth from the figure reported for the 2021 financial year.”

“During the year under review, the company carried on with consolidating our plans and strategies, deploying resources to ensure we remain on the right path towards growth and profitability. Going forward, we will continue to invest in our people, facilities, and ICT infrastructure to deepen market penetration in the direct and retail segments, enhance our product offerings in the market, grow our Agric portfolio and leverage business analytics for strategy and decision making”, he disclosed.

Also speaking after the general meeting, the Managing Director/Chief Executive, Mrs. Ebelechukwu Nwachukwu said that despite the very harsh operating environment, the company was able to grow its topline figures and maintain its leadership in key corporate accounts, participating in large-ticket insurance transactions, its renewed focus on the retail markets – which continues to be a growth market – and agriculture insurance, which is beginning to gain traction in the insurance market in Nigeria.

“Over the next one year, the insurance market will witness a great rebound of the Royal Exchange Brand. The company is ready to launch bold and strategic initiatives that will enhance our service offerings, reposition, and improve brand visibility and make the company one of the best places to work, in line with our vision statement”, she noted.

The Management of the National Information Technology Development Agency (NITDA) led by its Director-General/CEO, Kashifu Inuwa Abdullahi, have visited the National Insurance Commission, (NAICOM).

The team was received by the Commissioner for Insurance/Chief Executive Officer, Olorundare Sunday Thomas, and his Management team.

Read Also: Takaful, Retakaful firms to appoint NAICOM Relationship Officers

The commissioner said the purpose of the visit was to activate the  institutionalisation of the cyber insurance to strengthen the digital ecosystem.

He stated that the two agencies discussed the benefits to the nation and have agreed to partner to ensure it is realised.

•Pays N1.47b claims

SUNU Assurances Nigeria Plc has paid its shareholders 3Kobo dividend per share of 50kobo ordinary share of the company.

Its  Chairman, Kyari Bukar, who announced the dividend payment at the firm’s Annual General Meeting (AGM)  in Lagos, stated that the dividend was paid in view of the impressive results recorded by the company.

He noted that the firm’s GWP  increased to N5.77 billion last year from N4.87 billion in 2021, adding that this represents a growth of N903 million in value and 18.5 per cent while 94.5 per cent of the full year budget of N6.11 billion was achieved due to adverse impact of macroeconomic pressures in the country.

He said the claims paid reduced from N2.07 billion the previous year to N1.47 billion in 2022 by 28.8 per cent, which represented 93.1 per cent of the paid claims budget for the year, stating that this was due to the favourable claims experienced during the year considering the non-occuring nature of the #End SARS violence.

Read Also: SUNU Assurances’ gross premium hits N4.6b

Bukar noted that the net claims expenses increased by 41.4 per cent to N1.21 billion last year from N859 million in 2021, which was an overshoot of N261 million above N953 million budgeted for the year.

He submitted that environmental risks (floods), fidelity guarantee, goods in transit and motor claims affected their performance adversely.

The underwriting profit, he said, was N1.49 billion, which represents 77.2 per cent of N1.93 billion budget for the year and that the profit increased by 0.6 per cent from N1.48 billion in 2021.

According to him, the company’s profit after tax for the year was N330 million, which reflects an underperformance of the year’s budget of N399 million, but outperformed the N127 million profit made in 2021.

The chairman maintained that the board would articulate, implement and review the adequacy and effectiveness of the risk management.

The Managing Director, SUNU Assurances, Samuel Ogbodu, appreciated the company’s valued shareholders for their continuous supports. He added the company has put in place strategic plans to ensure growth while it pays  more dividends in the next financial year.

The recent fuel subsidy removal by the Federal Government will affect the demand for insurance, Commissioner for Insurance, Mr. Sunday Thomas, has said.

While delivering a keynote address at the Nigerian Council of Registered Insurance Brokers (NCRIB) 2023 Chief Executive Officers Retreat at The TCC Ogere, Ogun State, the commissioner said insurers must upscale their business models to attract individuals who are leaning towards creating sinking funds.

He stated that economic activities might reduce in the short run, so insurance operators, including brokers, and insurers, must optimise their management expenses to avoid the pressure of an off-peak period, while not forgetting to prepare for the possibility of cost-push inflation.

He said an important issue that needs to be tackled is the need for standards to prevent or reduce, to the barest minimum, unethical practices which ridicule or impugn the integrity of the insurance industry. 

He commended the NCRIB for the cooperation to the commission’s effort to ensure  standards among its members as well as the continued support and representation of the NCRIB in various industry committees instituted by the Commission, such as the AfCFTA Committee, and Committee on the Insurance Bill.

He, however, emphasised that irrespective of the differences in approach or methodology, they were  committed to deepening insurance penetration in the   industry.

He said: “It has, therefore, become imperative that we all work towards aligning our collective vision and goals for the industry in order to present a formidable front.  We must break from an industry that is perceived as one that is always at logger-heads on matters that ordinarily are for the progress of the industry.  This cannot be achieved without being true to ourselves as professionals in this time honoured industry.

Read Also: NAICOM releases Sandbox guidelines

“Let me emphasise that for this industry to remain sustainable, we must accept changes that come with modernisation and technological advancement.This is why we must realise that distribution channels for insurance products must be expanded beyond the traditional norms. Every arm of the sector must hugely invest in technology  to compete or meet the expectation of clients. It has thus become imperative to support the Commission’s efforts to bring emergent online platforms for distribution or provision of insurance under the Commission’s regulatory purview in the interest of the insurance industry.

“An important issue is the need for operational standards to prevent or reduce, to the barest minimum, unethical practices which ridicule or impugn the integrity of the  insurance industry.  It is our humble view that strong and sound firms are better able to invest in the much needed IT solutions to ease operational pain-points within the industry hence the need to dissuade portfolio broking firms. 

“Insurance brokers must begin to re-examine the insurance broking value proposition beyond the traditional perception.This is necessary to enable the insuring public/insured appreciate other values offered, as the rhythm has changed and people may only use services that provide priority values to them.”

Thomas also emphasised that insurance brokers have important roles to play in repositioning the industry. 

This, he said, includes projecting the additional values created by the new regime of Third-Party Motor insurance cover, the NAICOM portal, improved soundness and stability of insurers, better market conduct practices and fair treatment of insurance consumers, as well as collaboration with state governments on compulsory insurances.

He reiterated that regulatory changes were continuous given the changing dynamics of the market environment. 

“We must, therefore, avoid the obvious temptation to resist innovative regulatory and supervisory initiatives intended to make the industry more relevant to the economy. We cannot continue to wait; we must confront our challenges before our challenges consume us. It is important to reiterate that collective planning is as necessary as individual planning; if we do not collectively plan to succeed then we might fail collectively”.

He added that the Commission remains committed to the development and growth of the Nigerian insurance industry and would continue to collaborate with all stakeholders in promoting and entrenching good business practices.

NCRIB President, Mr. Rotimi Edu while speaking on the the theme of the retreat “Planning” said it is precise and will encapsulate all efforts towards instituting a solid foundation for growth and development of Insurance industry.

He stated that the “Brokers-Centric” focus of his leadership has been recording good success.

We are all witnesses to the increasing tempo of member’s interest in activities of the Council, while the same interest is being stimulated amongst insurance companies who do everything possible to collaborate with the Council for their enhanced bottom-line and ultimate corporate progress.

Edu assured that they would continue to commit to these lofty ideals for all their members.

He added that the Council is stridently trying to retool the minds of members to the growing expectations of the public about the quality service they expect from them.

Sanlam Life Insurance Nigeria Limited has partnered the continent’s emerging microinsurance fintech, aYo Holdings, to support  the former’s drive to offer consumers affordable life and hospitalisation cover.

aYo acts as a technology service provider to Sanlam in Nigeria.

According to the Sanlam, it will coordinate technical integration for the underwriter of microinsurance products and provide platform services to enable mobile money and third-party payment offerings.

This will enable Sanlam to offer easy, convenient and affordable products that challenge traditional insurance offerings.

Chief Executive Officer, aYo Nigeria, Kayode Odetola, during the launch of aYo Nigeria, said the company aims to drive greater financial inclusion by using technology to make financial services more readily available across the country.

Odetola said the low insurance penetration rate in Nigeria (less than one per cent of Gross Domestic Product, GDP) is one of the lowest in Africa.

“Most people think insurance is a luxury product, but we want to show that people with all levels of income can get peace of mind at an affordable cost, to help take care of their financial health in the face of unexpected events.

“From the seamless onboarding process to the ability to track cover in real-time, we aim to change the perception of insurance by dealing with one of the most important challenges, which is trust,” he added.

He explained the Sanlam Recharge with Care product will offer up to N300,000 in life cover and up to N6,500 per day in hospitalisation cover that can be purchased using mobile money wallets and other payment options.

Read Also: Brace up for fuel subsidy removal effects on insurance, says NAICOM

He said telco-driven financial services products were suited for Nigeria’s vast underserved population, which is expected to benefit  from Sanlam’s affordable life and hospitalisation covers.

Chief Executive of Sanlam Life Insurance Nigeria Limited, Tunde Mimiko, said the aYo deal reflects Sanlam’s commitment to deepening insurance penetration by providing accessible life insurance products to more people.

“At Sanlam Nigeria, we aim to form partnerships with organisations who understand the local market and share our values and culture. We’re  seeking innovative ways of bringing affordable and fit-for-purpose insurance to all Nigerians. With a trusted partner like aYo on board, the possibilities are as endless as they are exciting. 

NSIA Insurance Limited has declared a gross premium written of N18.02 billion.

Customers also got their benefits, as NSIA Insurance Limited paid out N8.81 billion in claims during the 2022 financial year.

Delivering the company’s 2022 annual report to shareholders, the company’s chairperson, Dr. Adesegun Akin-Olugbade, said despite the challenging operating environment, the company closed the year with positive results, delighted its shareholders, and made prompt claims payment to customers.

He said there was an improvement in gross premium income at 33 per cent from N12.68 billion to N16.82 billion in 2022.

He noted that the total assets of the company grew by 13 per cent from N25.51 billion to close at N28.69 billion as of 31 December 31, last year, adding that the growth was driven by the company’s sound investment strategy, which was bolstered by the increase in gross premium written.

He said: “The net effect in equity was a growth of seven per cent from N13.64 billion to N14.59 billion in 2022.

Read Also: Brace up for fuel subsidy removal effects on insurance, says NAICOM

“The company declared and approved a dividend payment of 2.2 kobo for the year ended December 31, 2022, for each ordinary share held in the company, amounting to N396 million. It is on record that NSIA Insurance Limited has paid a cumulative dividend of N657 million to its shareholders in the past three years,” he maintained.

Managing Director, NSIA InsurInsurance Limited, Moruf Apampa, said: “We remain adaptable and responsive to the unfolding trends, modifying our plans and operations in a manner that would ensure that we achieved our strategic objectives.’’

“Despite a number of economic development obstacles in 2022, we made exceptional success across key metrics and major lines during the financial year”, he added.

Coronation Insurance at the  weekend announced its corporate sponsorship of the World Tennis Tournament (WTT) to boost Nigeria’s Gross Domestic Product (GDP).

Introduced by the International Table Tennis Federation in 2019, the WTT Contender showcases the participation of professional table tennis players from various countries, who compete for the championship title.

The WTT professional tour has energised the elite player base by allowing them to fight for incentives and world-ranking points, while also allowing up-and-coming stars of the sport to work their way up the ladder. The WTT Contender Series will make its African debut in Durban, Lagos and Tunisia.

The event, scheduled to hold at the Sir Okoya Thomas Indoor Sports Hall in Surulere, Lagos, from today and on June 18, will  host  notable tennis players such as Quadri Aruna, who will face opponents from China, Tapei, Korea, Germany, Portugal, Denmark, Egypt, Slovakia, Poland, and Sweden.

The CEO of Coronation Insurance Plc, Mr Olamide Olajolo, stated that there is an urgent need to support national sport bodies to implement targeted fund-raising programmes and prioritise the allocation of resources for sports.

He stated that “no doubt, the WTT Contender competition helps to improve fundamental social and interpersonal skills, which aids in crime reduction and building national unity. It is also important to note that Nigeria needs to boost private investors’ confidence in the industry so they can fully participate in the business aspect of sports”.

According to a report issued by the Centre for the Study of the Economics of Africa (CSEA), Sport contribution to Nigeria’s GDP remains low due to inadequate finance and investment. Accessing the impact of sports on Nigeria’s GDP, the report shows that the entertainment and recreation sector contributed 0.19, 0.31, 0.33 and 0.35 percentage to the Nigerian GDP in 2019, 2020, 2021 and 2022 respectively.

Read Also: China, Korea, Germany, India lead 21 others to WTT Contender Lagos

Similarly, the CEO of Coronation Life Assurance, Akinlolu Akinyele, said that “we are excited to be a part of this epoch-making tennis fiesta. Indeed, Sporting tournaments such as the WTT Contender Tournament can be utilized as a medium to democratize wealth creation and access, thereby encouraging participation in all sporting activities in primary, secondary, and tertiary educational institutions. These will help make the sports sector more appealing for the youth to pursue as a career and profitable for businesses”.

He maintained that sports can provide an important platform for youths to develop life skills that will enable them to cope better with everyday life challenges and transition away from drug abuse, violence, and crime.

Shareholders of AIICO Insurance Plc have lauded the growth trajectory achieved by the firm, as it recorded N7.55 billion profit after tax in 2022, as against N4.92 billion achieved in 2021.

Speaking at the company’s 53rd Annual General Meeting (AGM) in Lagos, National Coordinator, Independent Shareholders Association of Nigeria, (ISAN), Moses Igbrude, said the company’s financial performance amid enormous challenges in the country is commendable.

Applauding the firm for a three kobo dividend payout, he implored the firm to do more in insurance education, stressing that getting more policyholders, would beget more profits and return on investment to shareholders.

Another shareholder, who is the Managing Director, Lancelot Ventures Limited, Adebayo Adeleke, commended the firm for recording such a good financial performance.

He urged the company to do more in onboarding more policyholders through the deployment of robust technology; needs meeting products and also leveraging its huge fund to invest in opportunities created by deregulation policies of the federal government.

Read Also: AIICO Insurance supports less privileged children

Chairman, AIICO Insurance Plc, Mr. Kundan Sainani, told shareholders that the firm’s gross premium written stood at N88.28 billion in 2022, compared to N71.63 billion recorded in 2021, while the gross premium income was N74.03 billion, as against N61.10 billion achieved in the previous year.

Sainani maintained that the company’s net claims payment was N44.99 billion in the year under review, contrary to N39.91 billion expended in the previous year. According to him, the firm’s total assets in the year were N270.33 billion; total equity, N45.01 billion, and shareholders’ fund, N44.59 billion.

On dividends to shareholders, he submitted that the company’s approach to capital allocation has not changed, adding that the firm still has to manage the tension between reinvesting in its businesses and returning cash to shareholders while keeping regulatory and economic capital constraints in view.

Linkage Assurance Plc recorded a gross written premium (GWP) of N12.98 billion in 2022 as against N11.16 billion in 2021, representing a 16 per cent increase.

The firm also recorded N506.162 million underwriting profit, a growth of 120 per cent when compared with the figure in 2021.

Linkage also strengthened its bottom-line with Profit Before Tax (PBT) N2.696 billion, and Profit After Tax closing at N2.567 billion.

Linkage saw income from investment boosting bottom-line stronger after a successful underwriting year.

Total assets at the end of the review year stood at N39.998 billion, a three percent increase from N38.710 billion in the previous year.

The Managing Director/CEO of the company, Daniel Braie, said the firm has continued to pay attention to customer satisfaction through excellent service delivery and prompt settlement of all genuine claims.

 He said the company is focused on maximising its potential in key segments of the market where it plays strongly and would continue to ensure it creates value for its teaming shareholders.

He said: “As an organisation, we shall continue to refine our strategy in line with our strategic focus for the year and theme.

“Our theme for this year is “Consolidation”, and this informs our strategic intent along the four pillars of business growth, Operational excellence, financial excellence, and customer and people.’’

Shareholders of Consolidated Hallmark Insurance Plc have received a dividend of N0.03 or 3kobo per ordinary share of 50 kobo for the financial year end 2022.

The company said the dividend of N0.03 or 3kobo per ordinary share of 50 kobo is a total dividend yield of six per cent per share and amounts to N325.2 million.

The Chairman, CHI Plc, Obinna Ekezie, made this known at the firm’s 28th Annual General Meeting (AGM) in Lagos.

He said the company has been consistent in delighting investors by rewarding them with dividends over the years.

He stated that during the 2022 financial year, the company again braved all odds in the operating environment and posted improved results in its top and bottom lines, adding that the results are an all-time high, as they showed a growth of 22 per cent in Gross Premium Written (GPW), from N10.5 billion in 2021 to N12.8 billion in 2022.

He stated that underwriting profit grew from N1.9 billion in 2021 to N2.4billion in 2022, while the total assets grew to N18.5 billion when compared with the N15.6 billion of 2021.

He added that the company also maintained its unbroken proûtability record by growing profit before taxation to N 1.4 billion from the N971.6 million of 2021, while total profit attributable to shareholders has attained a billion-naira mark, having hit N1.017 billion from N923,095,723 in 2021.

The Group Managing Director, Eddie Efekoha, said the financial year 2022, was a remarkable one for CHI as it marked the 15th Anniversary of the journey it embarked upon in 2007.

He noted that it also was the beginning of another journey for the transformation of the company into a ûnancial powerhouse for the transaction of insurance and other ûnancial services under one formidable umbrella.

“We have truly progressed in that journey, having received your unwavering support and unanimous approval to embark on all necessary processes. There is cheering news by colleagues on the Board having, once again, to the best of our abilities, carried out the assignment given to us to grow our investments in this going concern.