The Nation Newspaper

Category: Insurance

  • Firm acquires 39.2% stake in Royal Exchange

    Royal Exchange Plc has announced the 39.25 percent acquisition in its general insurance subsidiary, Royal Exchange General Insurance Company (REGIC) by the InsuResilience Investment Fund (IIF), established by the German Development Bank (KfW) and managed by Swiss based Impact Investment Manager, BlueOrchard Finance Investment Limited (BlueOrchard).

    The acquisition, which results in a N3.6 billion injection in REGIC, is in line with the National Insurance Commission’s (NAICOM’s) directive for firms to increase their share capital in line with the new regulatory requirements.

    The Managing Director, Royal Exchange General Insurance, Mr. Benjamin Agili, made this known at the company’s Control Office/Head Office in Oshodi, Lagos.

    He said as one of the leading non-life insurance firms in the country and having a strong presence in the agric-insurance space through its partnerships with the Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending (NIRSAL) and some state governments, the investment by the KfW is expected to have a huge impact on the company’s presence in the agric-insurance space to enable REGIC increase its presence even further.

    He said: “With this investment, REGIC will be able to achieve its key objective of reaching out to over one million farmers within the next five years, offering the best-of-bred agric-insurance services to enable them increase their productivity, make Nigeria more self-reliant in food production, which impacts the economy with growth of our GDP and the agro-allied economy.

    “Other strategic impacts this investment will bring to the company will be in the areas of Information Technology, market expansion, as well as helping the company meet its financial inclusion targets by enabling REGIC develop new products, as well as create alternative channels of distribution to reach our various clientele, especially those who are financially excluded as a result of accessibility, availability and knowledge of insurance and how insurance can improve their well-being.’’

    Also, Chairman, Royal Exchange Plc, Mr. Kenny Ezenwani Odogwu, said REGIC has entered into strategic alliances with various stakeholders in the agricultural space to drive insurance within that sector of the economy.

    ‘’Agriculture and retail insurance, we believe, is the future of insurance and at Royal Exchange. We will continue to develop products and services to ensure that we remain relevant in this space,’’ he said.

  • STI assures shareholders on its new capital plan

    Sovereign Trust Insurance (STI) Plc has assured its shareholders that its mandate to scale up the company’s capital base has reached an advanced stage.

    Its Chairman, Oluseun Ajayi who gave the assurance, spoke during the company’s 24th Annual General Meeting in Lagos.

    He stated that the company’s programme for recapitalisation was on course with the ongoing issuance of rights to shareholders of the company.

    He added that with the schedule, the company would be issuing 4,170,411,648 ordinary shares to its esteemed shareholders which, he said, is expected to be finalised by the third quarter of this year.

    He noted that the capital raising options as advised by the company’s financial advisor would be considered later in the year to ensure the company is set on a solid and competitive platform in the industry

    He however said the company would soon unveil some products to harvest opportunities to be created by the nation’s new minimum wage.

    He disclosed that the new minimum wage bill recently passed and accented to by President Muhammadu Buhari will, to a great extent, increase demand and supply.

    On the firm’s 2018 financial performance, Ajayi noted that the company recorded Gross Premium Written (GPW) of N10.5 billion, representing 23 per cent increase over the N8.5 billion recorded in 2017.

    He said: “The net premium income equally grew by 31 per cent to N5.5 billion over N3.85 billion achieved in the previous year. We recorded a profit before tax of N540 million as against N202 million achieved in 2017 representing over 167 per cent increase and profit after tax also stood at N344 million, a 118 per cent increase when compared with N158 million recorded in the previous year.

    “Return on Capital Employed (ROCE) recorded a positive performance of 2.9 per cent as against 1.87 per cent achieved in 2017 and the earning per improved by 118 per cent from 1.89 kobo in 2017 to 4.13 kobo in 2018. Also, the firm’s balance sheet improved as the total assets rose from N10.8 billion to N11.3 billion representing five per cent and shareholders’ fund increased by six per cent from N5.5 billion in 2017 to N5.8 billion in 2018.’’

  • CHI rewards three essay winners

    Consolidated Hallmark Insurance (CHI) Plc has rewarded three winners of its yearly National Essay Competition to increase insurance education and boost  skilled manpower for the industry.

    The underwriting firm said this was part of its Corporate Social Responsibility (CSR).

    The winers were an undergraduate from the Insurance Department of the Federal Polytechnic, Offa (Fedpoffa), Kwara State, Korede Amole, who emerged the first prize winner, with N250,000 and an opportunity of getting a job with the firm after graduation.

    A student of the Insurance Department of the Lagos State University (LASU), Ojo, Balogun Obabi Olorunkosi emerged second and recieved N150,000. Ernest Oyemike Orjieh from University of Lagos (UNILAG), Akoka, came third with a prize of N100,000.

    CHI Managing Director/Chief Executive Officer, Mr. Eddie Efekoha, said the contest was part of the company’s contribution to the industry’s awareness creation as well as enhancement of skilled personnel.

    The contest, he said, started in 2011, based on the insurer’s belief in developing talents and expanding the industry knowledge, while encouraging research.

    Efekoha, also the President, Chartered Insurance Institute of Nigeria (CIIN), promised to work with CIIN to enhance skilled manpower for the industry, adding that, the students who would manage the industry in the near future must be properly groomed.

    The Commissioner for Insurance, National Insurance Commission (NAICOM), Alhaji Mohammed Kari, represented by Mrs. Ogbonna Benedetta, applauded CHI management for the initiative.

    He stressed that the initiative would spread insurance and deepened iits education among students.

  • Nigeria’s insurance capital requirement fair, says Ghana Commissioner

    Ghana’s National Insurance Commissioner (NIC) Justice Yaw Ofori has described Nigeria’s insurance capital requirement as fair.

    According to him, there is no need to compare Ghana’s new minimum capital requirement with that of Nigeria’s as the country’s market is five times bigger than Ghana’s.

    He spoke with reporters on the sidelines of the just-concluded insurance industry yearly conference in Abuja.

    The NIC last month raised the insurance (life and non-life) companies’minimum capital to GH¢50million from GH¢15million;  reinsurance companies also went up to GH¢125million from GH¢40 million; and  insurance broking companies increased to GH¢500,000 from GH¢300,000. Reinsurance broking companies were, however, maintained at GH¢1million.

    The increase was by at least 233 percent; reinsurance companies 212.5 percent; and insurance broking companies by 66.7 percent. The deadline for meeting this requirement was slated for June 2021—two years from now.

    Earlier on May 20, this year, NAICOM raised paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies on their part, were directed to raise their capital base from N10 billion to N20 billion.

    The increase was by 400 per cent (Life); 333.33 per cent (Non-Life); 360 per cent (Composite) and 200 per cent (Re-Insurance), while the insurance companies got a 13-month ultimatum to recapitalise or lose their licences.

    Following the announcement by Ghana NIC, insurance operators believed that Ghana insurance regulator was fairer to its operators, with lower capital requirement and longer time frame for the recapitalisation.

    But Ofori thinks otherwise. For him, the capital requirement as requested by NAICOM is fair for the business.

    He believes that Nigeria  is about five times Ghana’s size, believing  that with Nigeria’s market size at about five times that of Ghana, the capital requirement of Nigeria should have been five times of Ghana’s capital requirement.

    He urged insurance operators not to see the regulator as being difficult or anti-insurance, but as a body that has their interest in mind.

    He said: “Nigeria’s minimum capital requirement is higher than Ghana but we should understand that Nigeria is bigger than Ghana. Nigeria is like five  times and the economy is bigger. If you look at Africa, Nigeria has the largest population, a very strong market, I think it’s about the third or fourth when it comes to insurance on the continent.

    “So, definitely Nigeria is a big player and if you want to do business in such a country, you should be ready for the game. I don’t think that Nigeria didn’t think it through, rather I think NAICOM did a good job. Nigeria is a big market so let’s not draw the comparison. Different market, different strategy. I don’t know about the time frame that was given but even for us in Ghana, where we gave two years, our operators are still complaining that the time is too short. Insurance business is such that no matter what you do people will complain.

    “But as regulators, we want to give the right dosage. It is like when you have a child suffering from malaria and the medication you want to give is chloroquine which tastes very bitter. As the mother or father, you will insist that the child takes the medication to recover. So, I believe that they should not see the regulator as being anti-insurance. The regulator is actually there to support the industry but as a regulator, you will step on somebody’s toes and they don’t like it.’’

  • Firm pledges prompt claims payment 

    Underwriting firm, Linkage Assurance Plc, has assured its broker partners and potential customers of the company’s commitment to prompt settlement of claims, customer satisfaction and efficient service delivery.

    Linkage Assurance Plc Managing Director/CEO, Daniel Braie gave the assurance during the Members Evening of the Abuja Area Council of the Nigerian Council of Registered Insurance Brokers (NCRIB) held in the nation’s capital.

    He said the members evening hosting is part of the underwriter’s nationwide fraternisation tour to its broker partners.

    He also said the company plans to go round the area committees in all the geo-political zones where NCRIB is established, having started off with the Lagos national body before now.

    Braie thanked the insurance brokers for their partnership and support to the company, stating that their contribution has enabled the company attain its current level of growth.

    The Linkage CEO noted that the company which paid out an excess of N2.71 billion on claims in 2018 has continued to meet customers’ expectations, despite the challenging business environment.

  • WAICA Re grows authorised share capital to $100m

    WAICA Reinsurance Plc (WAICA Re) has an authorised share capital of $100 million with paid-up share capital amounting to $50 million under its management, the Managing Director, Mr. Bola Ekundayo, has said.

    Ekundayo, who spoke with reporters in South Africa, said the ownership of the paid-up share capital is distributed amongst WAICA members, other institutions and individual investors.

    WAICA Re was established as a reinsurance organisation to help mitigate the effects of the lack of reinsurance capacity within the West African insurance industry.

    He however, said the company has repositioned and strengthened its business across all the regions of Africa where its businesses are located and all the regions of Africa

    He stated that the company has also provided both Treaty and Facultative Re-insurance to the African market and beyond.

    He said: “The company is assisting insurance companies in training and retraining of their staff in the area of terrorism and agriculture insurance that is not being taken seriously in some parts of the region.

    “We are also training insurance companies in special risk areas such as oil and gas in order to improve their knowledge”.

    Speaking on its performance for 2018, he said that business has been good and their premium income has grown.

    “Our premium income is growing, because last year we made profits and we  are going to pay dividend to our shareholders. We have been consistent in paying dividend for the past four years and sometimes we issue bonuses in order to increase the capital base of the company which has made us to be one of the biggest reinsurance companies in Africa when it comes to capitalisation.

    “We have paid a lot of claims in Nigeria and Ghana. We also suffered some major losses even in some French speaking countries but despite that, our premium has been growing as we had expected.”

  • Group launches tutorial centre to aid manpower growth 

    To promote manpower development, the Professional Insurance Ladies Association (PILA), Abuja Chapter, has launched a tutorial centre in Abuja.

    Its President, Mrs. Ose Oluyanwo, said the centre would offer lectures for certificate, diploma and advanced diploma at highly discounted fees. It will also provide reading room facilities  and training rooms for the insurance industry and the public.

    Stating that PILA is an association under the Chartered Insurance Institute of Nigeria (CIIN), she noted that the association was always at the forefront of promoting growth of female insurance practitioners and the insurance industry at large.

    PILA, Abuja chapter, she stressed was not set up for profit but to provide lectures, coaching and other insurance career training programmes for current and future insurance students in Abuja.

    Abuja chapter of PILA, according to her, was inaugurated in 2005, out of the desire to increase and promote insurance knowledge in Abuja in particular and Nigeria in general.

    CIIN President, Mr. Eddie Efekoha lauded the insurance ladies body, stating that PILA has added professional contents to the activities of the institute since inception, promising them of CIIN’s support in all their activities.

    He added that the development of manpower for the insurance industry would go a long way to ensure that there are more insurance professionals in the industry.

    A lot of candidates who have applied for CIIN exams have challenges and the study centre is a seed in this direction that will yield multiple results, in the areas of manpower growth and development in the near future. I commend PILA and the sponsors of this project, he pointed out.

  • N4.17b rights issue on offer

    The Management of Sovereign Trust Insurance Plc is offering Rights Issue of N4.17 billion ordinary shares of 0.50k each at 0.50k per share on the basis of one new ordinary share for every two ordinary shares of 0.50k each held as at the close of register on Tuesday, January 15, 2019 to existing shareholders on the floor of the Nigerian Stock Exchange.

    A statement signed by the Managing Director, Sovereign Trust Insurance Plc, Mr. Olaotan Soyinka urged all shareholders of the company to take advantage of the unique opportunity by maximally taking up their rights in the rights issue with a view to increasing their stake in the company and as well grow their wealth in the very near future as the company is poised to moving on to the next phase of its growth stage.

    According to him, the management has set a growth agenda which is aimed at positioning the underwriting firm as one of the top five in the insurance industry in Nigeria.

    He appealed to shareholders of the company that a very robust capital base is critical to the success of the set agenda; hence the need to call on shareholders to fully exercise their rights by subscribing fully to the rights issue and ultimately grow their investments in the company.

    He said: “We are working assiduously towards being one of the most preferred insurance companies in the country for people to do business with, invest in as well as be the choice employer of Labour.

    “Judging by the results of the performance of the company in the last financial year in 2018, it leaves no one in doubt that the company is set for the path of profitability. The company recorded a Gross Premium Written of N10.5billion representing a 23 per cent increase in 2018 over the N8.5 billion recorded in 2017.

  • Nigeria’s insurance capital requirement fair, says Ghana Commissioner

    Nigerian insurers need not compare the new minimum capital increase requirement of Ghana to Nigeria’s as the country market is five times bigger than Ghana, the Commissioner of Insurance, National Insurance Commission (NIC) Ghana, Justice Yaw Ofori, has said.

    He spoke with reporters on the sideline of the just-concluded insurance industry annual conference held in Abuja.

    The NIC had in June 24, raised the insurance (life and non-life) companies’ minimum capital to GH¢50million from GH¢15million; that of reinsurance companies also went up to GH¢125million from GH¢40 million; and that of insurance broking companies was also increased to GH¢500,000 from GH¢300,000. Reinsurance broking companies were, however, maintained at GH¢1million.

    The increase was by at least 233 percent; reinsurance companies 212.5 percent; and insurance broking companies by 66.7 percent. The deadline for meeting this requirement was slated for June 2021—two years from now.

    Earlier on May 20, 2019, NAICOM raised paid-up share capital of a Life insurance company from N2 billion to N8 billion; Non-Life insurance from N3 billion to N10 billion and Composite insurance from N5 billion to N18 billion. Re-insurance companies on their part, were directed to raise their capital base from N10 billion to N20 billion.

    The increase was by 400 per cent (Life); 333.33 per cent (Non-Life); 360 per cent (Composite) and 200 per cent (Re-Insurance), while the insurance companies got a 13-month ultimatum to recapitalise or lose their licences.

    Following the announcement by Ghana NIC, insurance operators believed that Gnana insurance regulator was fairer to its operators, with lower capital requirement and longer time frame for the recapitalisation exercise.

    But Ofori Ofori thinks otherwise. For him, the capital requirement as requested by NAICOM is fair for the business.

    He believes that Nigeria  is about five times Ghana’s size, believing  that with Nigeria’s market size at about five times that of Ghana, the capital requirement of Nigeria should have been five times of Ghana’s capital requirement.

    He urged Nigerian insurance operators not to see the regulator as being difficult or anti-insurance, but as a body that has their interest in mind.

    He said: “Nigeria’s minimum capital requirement is higher than Ghana but we should understand that Nigeria is bigger than Ghana. Nigeria is like five  times and the economy is bigger. If you look at Africa, Nigeria has the largest population, a very strong market, I think it’s about the third or fourth when it comes to insurance on the continent.

    “So definitely Nigeria is a big player and if you want to do business in such a country, you should be ready for the game. I don’t think that Nigeria didn’t think it through, rather I think NAICOM did a good job. Nigeria is a big market so let’s not draw the comparison. Different market, different strategy. I don’t know about the time frame that was given but even for us in Ghana, where gave two years, our operators are still complaining that the time is too short. Insurance business is such that no matter what you do people will complain.

    “But as regulators, we want to give the right dosage. It is like when you have a child suffering from malaria and the medication you want to give is chloroquine which tastes very bitter. As the mother or father, you will insist that the child takes the medication to recover. So I believe that they should not see the regulator as being anti-insurance. The regulator is actually there to support the industry but as a regulator, you will step on somebody’s toes and they don’t like it”, he added.

  • PILA launches insurance tutorial centre 

    In a bid to contribute towards the development of manpower and professionals in insurance industry in the country, the Professional Insurance Ladies Association(PILA), Abuja Chapter, has launched a tutorial centre in Abuja.

    PILA President, Mrs. Ose Oluyanwo while speaking at the launch, said the centre offers lectures for certificate, diploma and advanced diploma at highly discounted fees, while also providing reading room facilities, sale of text books as well as training rooms for the insurance industry and the general public.

    While stating that PILA is an association under the Chartered Insurance Institute of Nigeria (CIIN) that is poised for great strides and visibility, she added that the association is always at the forefront of promoting growth of female insurance practitioners and the insurance industry at large.

    PILA, Abuja chapter, she stressed is not set up for profit but to provide lectures, coaching and other insurance career training programmes for current and future insurance students in Abuja.

    Abuja chapter of PILA, according to her, was inaugurated in 2005, out of the desire to increase and promote insurance knowledge in Abuja in particular and Nigeria in general.

    CIIN President, Mr. Eddie Efekoha lauded the insurance ladies body, stating that PILA has added professional contents to the activities of the institute since inception, promising them of CIIN’s support in all their activities.

    He added that the development of manpower for the insurance industry would go a long way to ensure that there are more insurance professionals in the industry.

    A lot of candidates who have applied for CIIN exams have challenges and the study centre is a seed in this direction that will yield multiple results, in the areas of manpower growth and development in the near future. I commend PILA and the sponsors of this project, he pointed out.