The Nation Newspaper

Category: Insurance

  • Guinea grows shareholders’ fund by 16%

    Guinea Insurance Plc has achieved an increase in shareholders’ fund as it recorded N3.4 billion in its 2017  financial year end. It increased  from N2.9 billion recorded in 2016, representing 16 per cent growth.

    This is following the approval of the underwriting  firm’s 2017 audited financial statements by the National Insurance Commission (NAICOM).

    According to a statement by the company’s Team Lead, Corporate Communications, Ufot Hanson, over the weekend, the approval was granted after a confirmation that Guinea Insurance had substantially complied with the Commission’s regulatory requirements as stated in its letter dated 11th April 2018 and captioned: Approval for Publication of Year 2017 Audited Financial Statements.

    The company said its Gross Premium Written grew by 7 per cent from N906.7 million in 2016 to N967.1 in 2017.

    The statement said: “Net Premium Income also grew by 15 per cent from N649.5 million in 2016 to N747.1 in 2017. Underwriting Profit grew from N453.4 million recorded in 2016 to N501.1 representing a growth rate of 11 per cent. Claims Paid by the company on various classes of insurance decreased by 47 per cent from N304.9 million in 2016 to N161.5 million in 2017, due to operational efficiency in terms of people, processes, technology and communications.”

    It continued:“However, the period under review was characterised by the whole shooting match of the Monetary Policy Committee holding interest rate at a record high of 14 per cent while the Central Bank had kept the monetary policy rate unchanged since July 2016 with the aim of balancing the need to fight inflation and also stabilising the naira in order to support an economy emerging from its worst slump in 25 years. In spite of these headwinds, the underwriter’s Investment Income recorded a marginal decline of 3 per cent from N215.5 in 2016 to N208.3 in 2017.

    “Howbeit, a remarkable performance was delivered as the underwriter posted a Profit Before Tax increase of 35 per  cent from N176.3 million in 2016 to N237.8 million in 2017; better still, it recorded a whopping Profit After Tax increase of 518 per cent from N40.6 million in 2016 to N251.0 million in 2017. The underwriter’s zest to be over and done with the challenge of solvency margin, was further consolidated during the year under review as its solvency margin grew by 13 per cent from N3.0 billion in 2016 to N3.4 billion in 2017, while increase in shareholders’ fund as recorded in  its books stood at 16 per cent from N2.9 billion in 2016 to N3.4 billion in 2017.”

  • Universal Insurance appoints Director

    Universal Insurance Plc has announced the appointment of Mr. Paulinus Offorzor as the Executive Director, Technical Operations of the company following the confirmation by the National Insurance Commission (NAICOM).

    The appointment came on the backdrop of NAICOM’s directive that insurers should have an executive director in charge of technical operations by which the Board of Directors had forwarded his name to NAICOM as the nominee for the position.

    Prior to his new appointment, Mr Offorzor was the Deputy General Manager, DGM, (Technical & Enterprise Risk Management) of the Company.

    In a statement by the firm’s Managing Director, Ben Ujoatuonu, he said they have been able to comply with the provision of a guideline from the NAICOM, saying that every company should have an executive director, technical operation.

    Paulinus Offorzor is a graduate of insurance from the Institute of Management and Technology, Enugu. He equally holds a Bachelor’s Degree in Economics (B.Sc. Hons) from Imo State University, Owerri and a Masters in Business Administration (MBA) majoring in Insurance and Risk Management from Esut Business School.

     

     

  • FBN General sustains growth, grosses N3.51b premium in 2017

    FBN General Insurance has grossed a premium income of N3.51 billion in the financial year ended December 31, 2017, reflecting a year-on-year growth of 60 per cent from N2.2 billion in 2016.

    The company’s claims and expenses rose by 180 per cent from N270 million to N756 million. Profit before Tax (PBT) closed at N322 million, representing a growth rate of 66 per cent.

    In a statement by its Managing Director, Bode Opadokun, the growth was partly driven by improved asset and investment portfolio management resulting in an investment income growth of 112 per cent.

    He said: “The 2017 account was approved by the National Insurance Commission, (NAICOM). During the year under review, we consolidated on the strategic restructuring across key business functions.

    “This has inspired a profitable performance exemplified by our total assets recording an appreciable growth of 27 per cent at year-end from N6.06 billion achieved in 2016 to N7.72 billion in 2017. With our strategic marketing drive and the support of our dedicated staff, we are hopeful of sustaining our growth in 2018.

    “It is worthy of note that in addition to the company’s restructuring efforts during the year, FBN General has implemented some tactical initiatives, chief of which is the diversification into retail product sales to enhance her value proposition to customers. Though, the company recorded high claims expenses for the period, which stood at N756 million, a year-on-year growth of 180 per cent, this is symptomatic of the general high loss trend during the year and a testament to the firm’s commitment to her customer’s satisfaction,”he added.

    FBN General Insurance is a wholly owned subsidiary of FBNInsurance Limited, an FBNHoldings company associated with the Sanlam Group SA.

     

  • NIA to NAICOM: stop claims defaulters from new businesses

    To sanitise the insurance industry and rid it of underwriters who fail to pay genuine claims to insuring public, insurance companies’ umbrella body, Nigeria Insurers Association (NIA),  has called on the regulatory body, the National Insurance Commission (NAICOM) to stop the erring firms from doing new businesses.

    NIA Chairman, Eddie Efekoha, made the call at a press briefing to announce the association’s two-year plan to build a multi-million secretariat. The association has temporarily relocated to 264, Ikorodu Road, Obanikoro, Lagos in other to pull down the old secretariat.

    Efekoha, who is also Consolidated Insurance Plc (CHI) Managing Director,  said business owners and shareholders should take actions against companies that are not performing, stressing that it is not right for any underwriter to refuse to pay a genuine claim.

    He asked if a firm that is unable to pay claim should be partake in new businesses. He asked: “Who is to take the decision against such firm? Is it the NIA, the market or the regulator?”

    He argued that before a firm’s problem becomes compounded, somebody along the line has a duty to do something. He, however, noted that the Insurance Act has not been so friendly to the regulators and  has affected them in some areas where they needed to act.

    “The Insurance Act has not been so friendly to the regulators and has affected them in some areas where they need to act. Although the Act is undergoing some amendment, it has been a bit slow. We all know that the wheel of government grinds slowly, but it will surely grind. In the same vein, the problem we are having has nothing to do with the management of NAICOM but as a country.

    “I think that the issue of merger and acquisition cannot be decreed, but the regulator can say company A,  B and C, your capital is below minimum and if you don’t address it in maybe between one to  six months, we will take the next step. The first step is to say, you are not doing business anymore until you show evidence of resolving the problem. Then if it does not happen, you take further step. If you think it is the board that is contributing to it, you ask them to have a board change. If it is management, you ask them to change the management.

    “Although insurance company licences are not renewed on yearly basis, but they submit their account and reinsurances.There are rules for this business and when they are adhered to, there cannot be failure.

    “When a company raised N3 or N2 in 2007 and it is approved and reissued licence and that company today is having problems with its capital, among others, the question is what happened over the period. Did the regulator see their account and reinsurance? Were these reinsurances paid for? If they were paid for, why were the claims not paid? So if the direct underwriter fails, did reinsurance equally fail? So, it takes all hands to be on deck for us to resolve the problem. Management and owners of business must ensure that their companies are properly managed. It is not even the regulator because they don’t own the companies,” he explained.

     

  • NSE fines African Alliance N46.1m for late account submission

    •Firm records N21b negative reserve

    The Nigerian Stock Exchange (NSE) has imposed a fine of N46. 1 million on African Alliance Plc for breaking its rule on account submission.

    According to NSE X-Compliance Report, released on April 12, 2018, the  fine is for late submission of its 2015 and 2016 audited accounts.

    The fine and management expenses have, however, affected the reserves of the company as it recorded N1.49 billion management expenses and negative reserves amounting to -N21.05 billion during the period under review.

    With the negative reserves, the company may not be able to meet most of its responsibilities, especially prompt claims payment.

    According to the NSE, the company filed its audited and interim financial statements after the regulatory due date, stating that it applied sanctions in accordance with the rules for filing of accounts and treatment of default filing under the Rulebook of The Exchange.

    In addition, the NSE described the company as a delinquent filer of audited accounts as it fell short of the minimum listing standards in terms of timely disclosure of its audited annual financial performance and has Missed Regulatory Fillings (MRF) or Awaiting Regulatory Approval (AWR) of their primary regulators, which is the National Insurance Commission (NAICOM).

    The shareholders of the company have expressed their displeasure at the way the company is being run, stating that instead of rewarding the shareholders, who have stood by the company during trying times, the firm is busy paying millions in fines to regulatory bodies.

    Speaking on behalf of shareholders in the insurance industry, the President, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, said: “Some insurance companies have  corporate governance issues. We commend NAICOM because it will not approve any account unless it is thorough. We give kudos to the Commission for safeguarding the interest of the investors as well as customers.”

    Insurance stocks, he said, have been unprofitable for shareholders for some years now as managment has not been able to give good returns on investment. He noted that this was the reason why share prices have remained at par value.

    He said shareholders react to the results a company releases, its dividend payout, its future prospect, adding that insurance companies have failed in all these.

    “So, where do you expect the price to go? The price would remain as it is. It is the dividend payout that throws up the prices, and so long as you don’t pay a commensurate dividend to the shareholders, that is what you get,” he said.

    Meanwhile, NAICOM has frowned at the attitude of some insurance operators for failing to file annual reports.

    A top NAICOM official said some companies, especially those quoted on the floor of the NSE file their reports as late as March 29 when indeed, the deadline for submission is March 30.

    He stressed that this is despite the Commission’s decision to fast-track approval for all quoted companies.

    He noted that the financial year end for insurance companies, as it is for other financial sectors, is December.

    He said the Commission is saddened that some operators still struggle to meet up with the deadlines.

     

  • Law Union & Rock profit up by 66% in 2017

    Law Union & Rock Insurance Plc has recorded a profit before tax (PBT) of N1.1 billion as at the end of 2017 financial year from the N658.64 million recorded in 2016, representing a 66.8 per cent increase.

    Its Managing Director, Jide Orimolade, told reporters that the growth was recorded despite the economic headwinds, which characterised the business environment in the past year.

    He stated that Profit After Tax (PAT) also appreciated by 62.1 per cent, moving from N561.85 million in 2016 to N910.71 million at the end of the year under review, underscoring the capability of the board and management to enhance shareholder value.

    He said: “With the profit, shareholders of the company will receive a dividend payout after a long wait of reinvestment and plough back for growth and expansion. The company´s earnings per share stood at 21 kobo, as against 16 kobo the previous year, indicating increased shareholder value.

    “The company during the period under review also recorded a gross premium income of N4.25 billion, as against N3.9 billion in 2016, showing an 8 percent increase.”

    In the firm’s full year audited result, investment and other income also appreciated remarkably to N912.5 million from N687.3 million in 2016. A quantum growth in total assets of the company was recorded in 2017, which grew by 16.9 per cent, from N8.58 billion in 2016 to N10.03 billion during the period under review.

    “The company also kept its own side of the contract with its teaming customers, paying claims and claims expenses of N1.4 billion, as against N967.8 million in the past year. The positive growth in all the indices in the review year has been attributed to management’s efforts to increase market share and deepen penetration, with launch of new products,” he said.

    He further stated that the products attracted more premium income into the company’s coffers, and created enough liquidity to grow investment and meet claims obligations.

  • CIIN deepens collaboration with CII London on human capital

    The Chartered Insurance Institute of Nigeria (CIIN) has met with Chartered Insurance Institute (CII), London, United Kingdom (UK) to deepen collaboration on human capital development for insurance.

    Insurance Institute of Nigeria (CIIN) President, Mrs. Funmi Babington-Ashaye, who led the Nigerian delegation to the meeting, said both bodies met last week at the London office of the CII to advance discussion on building stronger relationship, knowledge sharing and best practice.

    According to her, the team was received by CII Chief Executive Officer (CEO), Sian Fisher, Chief Operating Officer John Bissell and  strategic adviser to the CEO of CII, Carmen Powell.

    She said both bodies would also work together to engender human capital development and education for the benefit of the industry.

    She said:“Collaboration towards building required human capital that will remain relevant and contribute to the emerging developments in the global insurance market has received a boost, following a strategic meeting between the CIIN and the CII, London.

    “After presentations by both bodies, we agreed on areas of collaboration that will enable the CIIN explore options and suggestions from CII London in order to get exemptions at Advanced Diploma level of the CII London examinations and earn maximum credit points.

    “Also agreed to be considered was collaboration for M.Sc. Insurance and Risk Management with the University of Lagos, where there will be exchange of already prepared curriculum so that the programme can be considered for exemptions by CII London.

    “The meeting also agreed to look at recognising the Centre for Insurance and Financial Management (CIFM) as an institution of prior learning. Other areas of collaboration include resuscitation of staff exchange programme to enhance capacity building, as well as run CII certification programmes and train the trainers at the CIFM.”

    She further stated that the CII after the meeting promised to send the CIIN a response to all the agreed areas of collaboration after due consideration by its board.

    She noted that Powell, during his presentation gave a snapshot of CII operations in Nigeria, saying the UK body has only 145 members in Nigeria, which included 63 Associates and 19 Fellows.

    “The institute, however, acknowledged that it had limited interactions with the regulator, students, affiliate institutes, educational organistions and corporate bodies in Nigeria.

    “For him, it is imperative that CII works together with the CIIN to grow membership in Nigeria since it had decided that Africa was key to its successful international operations. The CII seeks to double its 13,000 overseas membership quickly,” she said.

  • AIICO posts N5b increase in gross premium

    AIICO  Insurance  Plc  has posted an increase in its gross premiums from N27.06 billion in the 2016 financial year to N32.1 billion in 2017. This represents an increase of N5.03 billion or 19 per cent growth.

    Its Managing Director, Edwin Igbiti, who spoke at a press briefing, said the diluted earnings per share for the year was 13 kobo per share, down from 105 kobo per share in 2016.

    Igbiti said the firm experienced significant growth as a company in 2017, noting that it significantly increased its capacity and improve  processes to meet up with customer demands.

    Over the next few years, he added, it plans to grow the businesses.

    “This means the firm must invest in technology and people to ensure that processes are more efficient to increase customer service levels,” he said.

    Its Executive Director, Babatunde Fajemirokun, explained that the life business grew by 15 per cent from N18.8 billion to N21.6 billion in 2017.

    He said: “This growth was driven by the increased popularity of our traditional life products: the ordinary life business grew 29 per cent in 2017 to N16.4 billion from N12.8 billion in 2016. Non-life business grew from N7.6 billion in 2016 to N8.7 billion in 2017.  We have worked to improve our relationships with agents, brokers and various intermediaries this year to improve performance.

    “There was a change in how premiums in our health management subsidiary are recognised. Premiums from some capitated plans, previously unrecognised in the income statement were recognised in 2017. The impact of this change was N1 billion.”

  • FBNInsurance profit soars by 37%

    Life insurer, FBNInsurance’s Profit Before Tax (PBT), has grown by 37 per cent from N3.11 billion in 2016 financial results to N4.26 billion in 2017.

    In a statement by the company, its Managing Director, Val Ojumah said the financial report for the year ended 2017 has been approved by the industry regulator, National Insurance Commission (NAICOM).

    According to him, Gross Premium Written (GPW) also grew from N9.9 billion in 2016 to N19.6 billion in 2017, a massive 98 per cent increase.

    Figures obtained from the published financial statements showed a general growth across various measurement indices.

    He credited the performance to a combination of factors, including continued penetration of the retail insurance space, strong cost optimisation culture, consistent and efficient service delivery across available touchpoint, exploitation of new service channels, disciplined risk management, and a well-motivated workers.

    He said: “Our overall performance once again reinforces our strong earning capacity and robust capital base, which have put us in better stead to accommodate and sustain future growth. Our Return on Equity (RoE) rose to 34 per cent (up from 29 per cent 2016) and achieved a post-tax Return on Assets (RoA) of six per cent.”

    It would be recalled that FBNInsurance was last year recognised –for the third time in four years- as the Best Life Insurer in Nigeria by World Finance, while Sanlam Emerging Markets (SEM) awarded it the prestigious Nations Cup for a glowing performance all round among SEM companies.

    An FBNHoldings company associated with the Sanlam Group South Africa, FBNInsurance was incorporated in 2010 to transact life insurance business in Nigeria and currently operates out of 42 sales outlets and three branches nationwide.

  • Reliance HMO unveils plans

    With a budget as low as N3500, a family can enjoy a yearly health insurance cover courtesy of Reliance HMO (Health Maintenance Organisation).

    According to the firm’s Chief Executive Officer Mrs. Funlola Jide-Aribaloye, the HMO has insurance plans that ensure that individuals, families and organisations are healthy.

    Mrs Jide-Aribaloye spoke during the launch of the product.

    She explained that Reliance HMO has an edge over other firms because it is technology-driven. It started two years ago with a vision to enhance insurance accessibility through technology, the first of its kind in the country.

    “Reliance HMO is an insurance company that has fused technology into its operations to make health insurance more affordable, easier to access and all-round pleasant experience. To make health insurance more accessible and available to a wider variety of people, Reliance HMO has a repertoire of affordable healthcare plans for individuals, families and companies.

    “We understand that there is a yearning from the public for health insurance plans that really work, payment structures that don’t burn a hole in peoples’ pockets, and customer service that addresses their most pressing concerns. And that is why at Reliance HMO, we’ve built tailor-made insurance plans that ensure that individuals, families and organisations can stay healthy,” she said.

    Mrs Jide-Aribaloye added: “Furthermore, we are the first and only health insurer in Nigeria that gives enrolees the benefit and convenience of monthly payments. With a good number of partner hospitals and more being signed up every day, we are committed to preserving the wellbeing and health of individuals and the society as a whole.

    “Reliance HMO has an enviable mantra tagged “You can rely on us,” and is focused on doing everything to ensure that the customers’ health insurance experience is delightful and seamless. Customers can also look forward to the 24-hour Reliance Help Centre, where friendly and highly-trained agents, are always available to provide support and deal with urgent inquiries.”

    Reliance HMO co-founder/chief product officer, Mr. Femi Kuti, said health insurance is the answer to addressing challenges in the sector.

    “That is why we have tailored this HMO to address peculiar needs to Nigerians. This HMO has a dedicated medical support team that includes doctors on call and a 24/7 access to doctors’ consultation online.”

    “It is atrocious that only three per cent of Nigerians are covered in the health insurance and the country even has more disease situations than in more developed countries. Research shows that 50 per cent of families are at the risk of catastrophic financial situation, which means almost going bankrupt if they get a big health bill.

    “Our focus at Reliance HMO is to help more Nigerians regardless of who they are, get enrolled, access to health insurance and access healthcare at an affordable, decent price that won’t be outrageous, and in a case whereby you do not access your healthcare plan, probably because you didn’t fall ill, you can always be given back your cash or roll it over for another plan,”Kuti added.