The Nation Newspaper

Category: Insurance

  • Daniel gets African Hall of Fame Award

    Former National Insurance Commission (NAICOM) Commissioner for Insurance,  Fola Daniel has won the African Insurance Hall of Fame Award.

    The event took place during the gala night to mark the end of 45th AIO conference in Accra, Ghana.

    Daniel defeated two other nominees to emerge winner.

    The third African insurance Hall of Fame award generated much suspense across the continent following the quality of nominees and the award panel.

    The panel focused on the contributions of nominees to African insurance.

    According to the panel, nominees must have contributed to insurance, broking, reinsurance, and regulatory.

    They must exert influence on the ability of the industry to serve the society and be recognised by their peers.

    Daniel, a veteran underwriter, studied in Nigeria and the United Kingdom. He is a Fellow of the Chartered Insurance Institute, London, the Chartered Insurance Institute of Nigeria (FIIN) and, the British Institute of Management.

    Prior to his appointment as Commissioner for Insurance in 2007, he was appointed by the Federal Government as Executive Director (Operations) of Nigerian Agricultural Insurance Corporation.

     

  • Group Life: Beneficiaries to get death benefits from underwriters

    Beneficiaries of dead workers under the Contributory Pension Scheme (CPS) are to be paid by an underwriter in line with the provisions of insurance law.

    Death benefits, according to the law are no longer paid into Retirement Savings Account (RSAs). This is to eradicate the problems encountered by them in accessing benefits from Group Life Insurance. This will also apply to missing employees under under Section 8 of the Pension Reform Act (PRA),2014.

    Assistant General Manager, Benefits & Insurance Department, National Pension Commission, PenCom  Mohammed Umar,   made this known in a presentation at the 2018 Journalists Workshop in Uyo, Akwa Ibom.

    According to him, with a Letter of Administration confirming the beneficiaries and with the approval of the Commission, the PFA will release the amount in the RSA to personal representatives of the deceased.

    He said: “This will also be done by order of a Court of competent jurisdiction, in accordance with the terms of the Will or the personal law of the deceased employee.

    “Employers of deceased workers are, however, expected to report death or missing employees to the PFA and PenCom. Employers are to have representative on the Board of Enquiry constituted in the case of missing employee or retirement of employee on medical ground.”

    Speaking on the procedure for accessing RSA, he said some processes and documentations are required, adding that a RSA must notify PFA six months ahead of retirement and prrovide PFA with the documents for retirement.

    He said the documents include official notice/acceptance of retirement from employer; last pay slip as evidence of  Annual Total Emolument (ATE) & GL/Step; recent passport photograph; any other evidence of ATE; quotation from an insurance company for the purpose of annuity product, if desired; provide details of bank account; and provide contact address after retirement.

  • NAICOM refutes sanction on 14 firms over 2017 account

    The National Insurance Commission (NAICOM) has refuted a newspaper report (Not the Nation) that it has sanctioned 14 insurance firms for failing to submit their 2017 financial accounts.

    The Commission in a statement signed by its Deputy Director, Head, Corporate Affairs, ‘Rasaaq ‘Salami expressed shock at the display of ignorance and total lack of knowledge by the report.

    The statement read: “NAICOM has not sanctioned any insurance firm for failure to submit it’s 2017 accounts as claimed in the said news reports.

    “Please note that the deadline for submission of financial reports by the to the Commission in accordance with extant laws is June 30th. Thus, no insurance company could be said to be at default when the year is still in April.

    “The Commission, therefore, urges the Media to seek clarifications on issues they are ignorant of before publishing in order not to mislead the public.”

  • Linkage CEO among top 2017 capital market performers

    Linlage Assurance Plc Managing Director, Dr. Pius Apere, has been listed among top 25 Chief Executive Officers (CEOs), who delivered the most value to stakeholders, and contributed to stellar performances recorded by the Nigerian capital market in 2017.

    Last year, listed stocks at the Nigerian Stock Exchange (NSE) gained N4.36 trillion in market capitalisation, a development that made the Nigerian capital market one of the best in the world.

    The 25 CEOs, who were celebrated during the BusinessDay Top 25 CEO Awards in Lagos, accounted for over 60 per cent of the success recorded at the NSE as they added some N2.6 trillion to market value in 2017.

    Dr Apere, who led the Linkage Assurance Plc new management with the support of the Board, recorded significant achievements in 2017, leading to being named as one of the Top 25 CEOs.

    In the 2017 financial year, the company recorded gross premium income (GPI) of N4.102 billion as against N4. 032 billion in 2016, and was able to beat negative market sentiments that affected the company before the new management came in early 2017.

    Apere at the event said the company’s share price rose above 90 kobo from 2017 and was in a position to carry out half year 2017 Accounts audit exercise successfully within two months to pay interim dividend, having wiped out the negative retained earnings, which existed for over 10 years.

    The company is also in a position to pay final dividend from 2017 audited Accounts, which await NAICOM’s approval.

  • STI Golf: Partnering stakeholders for insurance penetration in Nigeria

    When Finance Minister, Mrs. Kemi Adeosun, at an event organised by Nigerian Council of Insurance Brokers  (NCRIB), decried insurance industry’s contribution to the country’s gross domestic product (GDP), saying it has been less than one per cent over the years, she was only stating the obvious. According to her, the abysmal contribution is not a welcome development “if our economy is to grow exponentially and government of Nigeria is not happy with this”.

    It would be recalled that former Minister of Finance and Co-ordinating Minister of the Economy in the last administration, Dr. Ngozi Okonjo-Iweala, also made the same remark at the 2014 NCRIB conference in Abuja that such situation is not acceptable to the government of Nigeria.

    To redress this situation, different players in the insurance industry have engaged the insuring public to enhance insurance contribution to the gross domestic product of the country. One of the insurance firms, Sovereign Trust Insurance Plc, appeared not to be leaving no stone unturned at ensuring that the industry’s contribution to the gross domestic product of Nigeria increases from below one per cent. This, perhaps, could be one of the reasons the firms has been sponsoring the Ibadan Open Golf Tournament for the past six years.

    This, again, conforms to Prof. Anne Gregory of the University of Huddersfield, United Kingdom’s position that stakeholders should be involved in developing corporate brands. In her paper, published in the Journal of Marketing Management, entitled: Involving Stakeholders in Developing Corporate Brands: the Communication Dimension, Prof. Gregory underlined four strategies that should be used to develop the corporate brand and these include information, consultation, involvement and partnership.

    It is because of this, according to Sovereign Trust, that it is partnering stakeholders through golf with the mind that it is a strong way of increasing insurance penetration in Nigeria through information sharing on insurance, consultations and involvement as golfers across the country are major stakeholders.

    The insurance industry has not been able to tap into the economic potential, as how will Nigeria, which is the largest economy in Africa, explain that in a country of 198 million people insurance has only contributed less than one per cent to the economy.

    However, South Africa, the second largest economy in Africa, contributes 15 per  cent to the continent’s economy while Morocco has three per cent. Kenya, which is the largest economy in East Africa, contributes three per cent.

    It should be underlined that the problems of insurance in Nigeria is multifaceted, but partnering the stakeholders as Sovereign Trust is doing as a leading brand, is a step that will not only work towards higher insurance penetration in Nigeria, but  address some of the shortcomings insurance is facing as information about insurance will be shared along with consultation and involvement of the stakeholders as posited by Prof. Gregory. The positive multiplier effects of this development will benefit the industry in particular and the Nigerian economy in general.

    This year’s tournament, the 6th Sovereign Trust Open Golf Tournament, was won by Olajide Owolabi of Abeokuta Golf Club, while Evelyn Oyome won the female category with Chief Babajide Olatunde-Agbeja clinching the insurance practitioner prize. Folasade Ajala emerged victorious in the net category.

    Commenting on behalf of the Managing Director/Chief Executive Officer of the company, Mr. Olaotan Soyinka, the Assistant General Manager/Head of Corporate Communications and Brand Management, Mr. Segun Bankole, assured the club of the firm’s resolve in supporting the game of golf and sports development in general. “We still remain true to our commitment of sponsoring the tournament in perpetuity as part of our contribution to the development of golf and sports generally in our country. Our foray in this regard is not fortuitous but rather a management well-thought out decision to always give back to our operating environment at all levels of management as it relates to health, sports and environment.

    “As a socially responsible corporate entity, we will, as much as the opportunity avail us, to continue to support and promote sporting excellence and qualitative recreation both locally and  internationally. Our unmatched records are testimonies of our unflinching commitment towards the enhancement of human capital through sporting activities,” Bankole added.

    Beyond its generous support for the development of the game of golf, what holds significant is the ingenuity of STI to deploy its sponsorship of the elite game as a tool to penetrate the vast insurance market. The logic is glaring enough.

     

     

     

    “Since the elite love to play golf, STI’s sponsorship is inevitably a sure way of driving its brand into the consciousness of the golfers and indeed, the general public as a brand that truly covers. That certainly suggests a strategic business partnership for the insuring public and the organisation towards insurance penetration in Nigeria,”he said.

     

  • Law Union and Rock declares dividends 

    Law Union & Rock Insurance Plc, one of the leading general insurance companies in the country, has paid dividend to its shareholders despite the economic challenge in the country in 2017.

    Its Chairman, Mr. Remi Babalola made this known at the company’s 49th Annual General Meeting at Onikan, Lagos.

    He stated that the company’s profitability grew by 66.8 per cent, adding that it recorded good performance in 2017 with eight per cent growth in its top line over the figure from the previous year.

    He said:“A significant contribution to the profit came from the company’s investment income while its Gross Premium written stood at N4.252 billion compared to N3.936 billion recorded in 2016. Profit before tax of N1.099 billion was achieved compared to N659 million recorded in 2016, which indicated a steady performance improvement of our company. Total assets grew by 16.9 per cent to N10.031 billion from N8.58 billion posted in 2016 financial year with a 28.6 per cent growth in shareholders’ funds from N5.03 billion to N6.47 billion.

    “The company also recorded a giant feat in its general reserves with retained earnings of N704 million from accumulated loss of N24 million recorded in 2016. In recognition of this performance, the company declared a cash dividend of 4 Kobo per share for the financial year.”

    Mr. Babalola said the company is stronger and liquid and will remain committed to meeting its obligations as they fall due.”

    The Chairman further presented the new Executive Director, Technical/Operations, Mr Olasupo Sogelola and Mr. Kunle Aluko, a non-executive director to the shareholders. Both appointment have been approved by the NAICOM.

    Its Managing Director, Mr. Jide Orimolade said the company will not relent in delivery of the best service to the customers.

    “The loyalty of the customers was very instrumental to the consistent growth of the company’s topline in the past few years, which has enabled it to eliminate its accumulated loss and cross to a positive retained earnings in 2017,”Orimolade said.

    Shareholders at the event were  happy as the three retiring directors -Mr. Babalola, Mr. Obinna Onunkwo and Mrs. Funmi Ekundayo were re-elected for another three years.

  • Shareholders recapitalise Goldlink Insurance with N3.3b

    THE shareholders of Goldlink Insurance Plc has  approved the re-capitalisation of the firm.

    The approval to raise N3.3 billion capital through right issue was given during the 20th Annual General Meeting (AGM) of the company for  the financial year ended December 31, 2015, at the weekend in Lagos.

    This is coming after about seven years of regulatory intervention in the company by the National Insurance Commission (NAICOM).

    The intervention was as a result of breakdown of acceptable corporate governance practices in the company.

    The company is also waiting for the exit of NAICOM’s intervention to begin business on a clean slate.

    Presenting the reports to shareholders, the Chairman, Alhaji Mohammed Bintude recalled that members of the Interim Management Board (IMB) were not constituted during the period of this report.

    He said while the arrangements for the commencement of the statutory audit for 2015 were yet to be concluded, NAICOM, on  February 25, 2016 reconstituted the current Board of which he became the chairman.

    “Broadly, our mandates include among others, to chart a way for the company’s needed recapitalisation and general repositioning for better business performance.

    “The year 2015 was an election year in the country which witnessed a trail-blazing and successful transition from one political party to another at the federal level, in her journey of democratisation. This remarkable development was however overshadowed by other global and macro-economic developments all of which combined to make the year a tumultuous one.

    “The company made efforts to sustain her market share but could not, owing to the impact of same of the issues already highlighted above, and her current peculiar circumstances,” he said.

    On the financial position of the firm, gross premium written fell by 32 per cent from N3.7 billion in 2014 to N2.5 billion in the current year. The loss before tax however improved marginally from N415 million to N409 million, a difference of one per cent. The company gained some tax reversals which impacted on the loss after tax, reversing the after tax loss of N529 million achieved in 2014, to N350 million in 2015, a difference of 33 per cent.

    “Over the same period, the total assets of the company fell from N2.1 billion in 2014 to Nl.8 billion in 2015, largely contributed by reduction in reinsurance assets and trade receivables.

    “As daunting as the performance appears, it is a reflection partly of the state of the uncertainty in the national economy and the peculiar circumstances of the company itself at the time. It is noteworthy however that the key to achieving a complete turnaround include the recapitalisation of the company, a process which this Board has made remarkable and tremendous progress,” he added.

    During a pre-AGM session with reporters, the interim Managing Director, Mrs Funke Moore, said: “It is a matter of public knowledge that the company has been under NAICOM’s regulatory intervention since the last quarter of 2012 due to the regulator’s observed breakdown of acceptable corporate governance practice(s) in the company’s management.

    “Upon the successful presentation of the company’s financial statements for the years 2011 to 2014 at the company’s 19th AGM in December, 2015, the first Interim Management Board constituted by the NAICOM was dissolved in February, 2016 and reconstituted as it is presently with the core mandate to; perform the normal duties of the Board and take such actions as may be considered necessary for the sound management and growth of the company within the scope of existing policies and practices; and carry out all other things that may be necessary to bring the company to sound management operation and stability.”

    According to her, the magnitude of the challenges the present IMB met on ground was very enormous; several difficult decisions have been taken in the course of the past two years to keep the company afloat. Mrs Moore said because of the company’s antecedents, particularly its brand reliability, knowledge base and quality service delivery, most of its clients have demonstrated uncommon understanding and utmost loyalty.

    “Recapitalising the company has been a very daunting task but am pleased to inform you all that we can now say that we are beginning to see light at the end of the tunnel.

    “This year’s AGM is particularly important because aside presenting the 2015 financials, it affords the Board the opportunity of presenting a workable ‘recapitalisation plan to the shareholders.

    “It is the Board’s hope that the recapitalisation plan, which has already received the regulator’s approval will be also be acceptable to the shareholders so that the company can quickly announce its resurgence in the Nigeria insurance market.  This will enable us start immediate planning on how to recover lost grounds,” she said.

    On the company’s future outlook, she stated that despite the reduction in some of their accounts the company is still holding its ground with a moderate market share and considerable goodwill from clients.

    “The company remains a good brand.  The feedbacks from our clientele have been very positive.  Indeed, we can confidently say that the market is waiting for a recapitalised Goldlink with renewed ability to meet our obligations as at when due.  We are assured of warm receptions by our erstwhile big brokers once we can conclude the issue of our recapitalisation,” she added.

    She commended the commitment of the company’s management and staff for their  faith in the brand.

    “Their many sacrifices must be acknowledged.  It is the people that make the company and I must say that I am proud of our present workforce.  I am full of praises for their resolve to always promptly discharge the company’s contractual obligations to the clients thereby encouraging customer- loyalty and conviction that the situation on ground has not, in any way, hampered the company’s ability to render quality insurance services that remain the yardstick for assessing sound underwriting outfits.

    “The workers’ doggedness in the face of current unfair competition and the management’s prudence have seen us pay off some of our big longstanding claims, even in the face of our meagre resources.  A recapitalised Goldlink will certainly imbue greater motivation and confidence in our ‘goal – getter’ workforce with attendant zeal to deliver more,” she added.

  • NCRIB urges members on attendance

    The Nigerian Council of Registered Insurance Brokers (NCRIB) has appealed to some of its members, who are still maintaining a distance towards the Council’s activities to have a change of heart.

    Its President, Shola Tinubu made the appeal at the April Edition of the Council’s Members’ Evening, hosted by Sovereign Trust Insurance Plc in Lagos.

    He said the Council can only survive through constant bonding and exchange of ideas on a continual basis.

    He said the Council’s bi-monthly Members’ Evening, a platform for interaction between insurance brokers and leading underwriters in the market, has remained an event that underwriters now jostle to host.

    He said even companies outside the insurance industry are willing to identify with the Council by sponsoring the Members’ Evening.

    He stressed that members attendance at the event will be part of their Mandatory Continuous Professional Development (MCPD) grading points.

    Sovereign Trust Insurance Plc Managing Director, Olaotan Soyinka, who led the management team of the firm to the event, applauded brokers for their roles in developing the insurance market.

    He appealed to brokers to sustain the relationship they built with his company over the years, whilst pledging the firm’s resolve to surpass brokers expectations.

  • CHI posts 108% growth in profit

    Consolidated Hallmark Insurance (CHI Plc) has reported a 108 per cent leap in its profit for the financial year ended  December 31, 2017.

    In its results, which were submitted within the regulatory timeline and recently approved by all regulators, including the capital market, the company posted a Profit After Tax of N406.2 million when compared with the N194.9 of the 2016 financial year.

    Also, Profit Before Tax grew by 74 per cent from N368.1 in 2016 to N641 million in 2017.

    Further details of the results made available to shareholders of the company show appreciable progress in investment activities as well.

    The underwriting income grew from N472.3 million to N796.2 million in 2017.

    Meanwhile, the Total Assets of the company have risen by 27 per cent from the N7.44 billion it was in 2016 to N9.49 billion during the period under review.

    Revenue reported for the period through Gross Premium Written was N5.6 billion, while a Net Underwriting Income of N4.05 was recorded.

    Managing Director of the company, Mr. Eddie Efekoha said the firm continues to fulfill its obligations through prompt claims settlement as gross amount paid out  during the year under review stoos at N3.3 billion.

    The positive result, he said is an affirmation of the firm’s assurance to shareholders that they should expect more returns in the nearest future, adding that its recent capacity expansion and growth initiatives will help to grow revenue.

    He added that plans were  afoot to hold the Annual General Meeting (AGM), where in line with its policy of rewarding shareholders for their steadfastness. Dividend payment, he promised, will be proposed to shareholders for approval.

    CHI Plc has paid dividends seven times in the last 10 years.

     

  • Portfolio Institute signs MoU with CISI

    Portfolio Management Institute (PMI) Nigeria, has signed an agreement with Chartered Institute for Securities and Investment (CISI), United Kingdom (UK).

    Its President, a former Managing Director of FUG Pension, Usman Suleiman, at the signing ceremony in Lagos, said the agreement will open the gateway to mutually rewarding and beneficial relationship between CISI and PMI.

    He said professional collaboration if well managed and sustained, can engender immense mutually beneficial reward for the parties.

    He stressed that he has no doubt considering the wealth of experience of all the parties involved, the collaboration will surely not only be of great value addition to our collective members, but also lift us up to higher levels of our collective goal achievements,” he said.

    He said it is a thing of joy for members of PMI joining the global professional community, which will avail them the opportunity of being identified with global best practice in investment and portfolio management.

    He noted that professional institutes, colleges and universities collaborate on initiatives that individual institutions might not be able to accomplish alone, adding that collaboration results in the creation of a formal entity with its own staff, budget and governance.

    He said: “Colleges and universities use collaboration to grow their influence with commercial providers and in this way, benefit the development of learning ecosystems. This is PMI’s focus and it is optimistic that the arrangement will be of immense benefits to membership and other stakeholders at large.

    “The business of banking and finance including investment and portfolio management, is of utmost trust and confidence, which should not be breached in whatever form, hence, the imperative of continuously sustaining professionalism and ethical behaviour. The Institute is putting in a lot of effort at repositioning and ensuring aeffective delivery of membership services and realisation of utmost professional value to members.