The Nation Newspaper

Category: Pension

  • Guinea grows premium by 11.7%

    Guinea Insurance Plc’s  gross premium income growth is up by 11.7 per cent. It was N913.4 million in 2016, but last year, it reached N1,020.4 billion.

    The underwriting firm’s net premium income also grew by 15 per cent from N649.5 million to N747.1.

    Underwriting profit grew from N453.4 million to N501.1, representing a growth of 11 per cent.

    Claims paid by the firm on various classes of insurance decreased by 47 per cent from N304.9 million to N161.5 million due to operational efficiency in terms of people, processes, technology and communications, the underwriter had said.

    Investment income recorded a marginal decline of 3 per cent from N215.5 in 2016 to N208.3 in 2017.

    Also, 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 profit after tax increase of 518 per cent from N40.6 million to N251.0 million.

    The underwriter’s zest to overcome 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 stood at 16 per cent from N2.9 billion in 2016 to N3.4 billion in 2017.

    Addressing shareholders at the 60th Annual General Meeting of the Company in Benin City, the company’s Chairman, Godson Ugochukwu, reaffirmed the Board’s commitment to grow the company. He announced plans to celebrate the 60th Anniversary of the underwriting firm.

    Ugochukwu noted the company’s philosophy of delivering value to its shareholders without compromising service standard remains sustainable.

    He said: “We are an upwardly mobile company, peopled with skilled professionals, our strength is made manifest in our passion for high standards and the single-minded determination to emerge a world class enterprise, one with the scope and economies of scale necessary to drive home our unflinching mandate of returning Guinea Insurance on the path of sustainable profitability.

    “This avowal is evident in the underwriter’s 2017 performance metrics.’’

     

  • GNI earns N449m profit

    •Why firm is delisting from NSE

    Great Nigeria Insurance (GNI) Plc made Profit before Tax (PBT) of N449.7 million in the 2017 business year. This is an increase of 202 per cent from a loss  of N442.7 million in the previous year.

    This was announced at the 50th Annual General Meeting (AGM).

    The company also witnessed an increase of 36.59 per cent in its Gross Premium, which grew to N3.02 billion from N2.21 billion written in 2016.

    As at last December 31, the company’s total assets were  worth Nl0.12 billion, showing a 1.2 per cent increase on the Nl0billion value as at December 31, 2016, while the shareholders’ funds also witnessed a 7.7 per cent rise.

    On why the company voted to delist from the Nigeria Stock exchange (NSE), the company’s Chairman, Bade Aluko, said in the last five years, there was little or no trading with only 0.50 of the shares held by the minority shareholders being traded.

    He explained that there had also been a fall in trading volumes over the past 12 months with an average daily volume of 1,200 units from January to last December.

    He said: “Neither our company nor our shareholders are benefiting from the continued listing as shareholders are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.

    “Already, our company’s free float stands at 16.03, significantly below the NSE’s minimum Free Float of 20.00. Although the NSE has granted our company an extension till May 2020 to cure the free float deficiency, it is highly unlikely that the free float deficiency will be cured at that time which may necessitate the NSE to take enforcement action and initiate a regulatory delisting.

    “Through the voluntary delisting of our company, we will be exercising a regulatory provision that will shield the company from any enforcement action that the Exchange may effect, for example by way of a regulatory delisting in light of the outstanding Free Float deficiency. The Voluntary Delisting will not occasion loss of the shares held by the minority shareholders as such the shareholders may retain the membership in the unlisted company.”

    He said through the voluntary delisting, the minority shareholders, who do not wish to be members of an unlisted company, would have an opportunity to exit the company.

    He stressed that the company believes that the successful completion of this process will herald  value creation for the shareholders.

    A member of the independent shareholders Association of Nigeria (ISAN), Sunday Akinsoye, said  the continued filing of the company by NSE was affecting the investment of minority shareholders.

    He noted that the shareholders were not pleased with the regulator, adding that if such funds paid as fines were channelled as dividend or investment, shareholders would be better for it.

    Another shareholder, Alex Adio also applauded the Board for opting to delist, adding that it has what it takes to survive after the process.

    According to him, remaining at the exchange has not grown the company. He assured that shareholders would support all moves by the company.

     

  • PenCom enrols retiring Fed Govt employees in Lagos, Ogun

    •Pension fund assets hit N8.14tr

    The National Pension Commission (PenCom) has started verification and enrolment for employees of Federal Government Ministries, Departments and Agencies (MDAs) in Ogun and Lagos states.

    The exercise, meant for Federal Government employees, who are due to retire between January and December age next year, when they will attain 60 or 35 years in service; or 70 or 65 years in service for employees of tertiary institutions, is for the payment of their retirement benefits.

    PenCom’s Head of Corporate Communications, Peter Aghahowa, who spoke at the flag-off of the exercise at the University of Lagos (UNILAG), said the the enrolment also covered those who have retired, but are not yet enrolled.

    He called on employees to attend the exercise with the originals and copies of their letters of appointment, evidence of transfer of service and acceptance, birth certificate/declaration of age and promotion letter as at June 2004.

    Other requirements, for the exercise, according to him, include a letter of introduction from the MDAs,  staff identity card, letter or evidence of retirement, and a letter of indemnity from the MDAs.

    He said: “The prospective retirees are also requested to come with evidence of registration with a Pension Fund Administrator (PFA) indicating their Retirement Savings Accounts (RSA) Personal Identification Number (PIN).

    “To ensure a successful and hitch-free exercise, the Commission requires the services of at least, one Pension Desk Officer from an MDA to assist in identifying potential retirees as well as confirm the authenticity of the documents presented by the employees.

    “Medically unfit employees are exempted from the exercise, but the Commission advises the Pension Desk Officers to come with their documents and a letter from a suitably qualified physician or medical board certifying that the affected employees are not physically or mentally capable of carrying out the functions of his/her office.

    “The exercise at the University of Lagos is for Federal Government employees in Lagos and Ogun states, while the Ibadan Centre is for Federal Government employees in Oyo, Osun and Ondo states.

    ‘’Employees are, however, advised to take part in the exercise as only employees who have been enrolled will be issued with the Federal Government Retirement Bond. The exercise in the Southwest is taking place between July 30, and August 17,” he added.

    Meanwhile,  PenCom has recorded a total pension fund assets of N8.14 trillion as at last May.

    This was shown in the Commission’s monthly report.

    According to PenCom, Retirement Saving Account (RSA) retiree fund stood at N619.59 billion; RSA active fund, N5.51 trillion; Closed Pension Fund Administrators fund, N1.08 trillion and Approved Existing Schemes (AES) N9.26.85 billion.

    PenCom said 70.08 per cent of the N8.14 trillion pension assets was invested in Federal Government’s securities, which amounted to N5.71 trillion.

    A breakdown of the investment showed that Federal Government Bonds got N3.96 trillion; Treasury Bills, N1.68 trillion; Agency Bond (NMRC & FMBN) N6.54 billion; Sukuk Bonds, N51.98 billion and Green Bonds, N8.26 billion.

    State government securities were N154.02 billion; corporate bonds, N393.27 billion; corporate infrastructure bonds, N8.36 billion; banks, N662.80 billion; commercial papers, N71.75 billion and estate properties, N228.86 billion.

    Other classes of assets include supra-national bonds, N8.21 billion; open/close end funds, N10.16 billion; mutual funds, N1987 billion; private equity fund N3727 billion; infrastructure fund, N8.95 billion and cash and other assets N96.13 billion.

     

  • PenOp, NSE strategise on multi-fund structure

    The Pension Fund Operators Association of Nigeria (PenOP) members have met the Nigerian Stock Exchange (NSE) to discuss how the capital market can be developed, especially in light of the Multi-Fund Structure that was  kicked off by the pensions industry recently.

    PenOp President, Mrs Aderonke Adedeji made this known when she led a delegation of PenOp members to ring the Closing Gong on the Trading Floor.

    She said the two organisations who are among the strongest players in the Nigerian financial sector also discussed other partnership opportunities.

    The meeting was attended by members of PenOp’s Executive Committee led by the President, Mrs. Ronke Adedeji and members of the NSE’s Senior Management Team led by Ms. Tinu Awe, Executive Director, Regulations.

  • LASACO launches motor power bikes for prompt claims settlement

    TO boost its customer satisfaction drive, LASACO Assurance Plc has launched motor power bikes for prompt claims settlement

    Tagged LASACO Blue Response,  it is targeted at auto insurance, would enable the company solve the most critical aspect of claim settlement, assessment, in record time.

    The Managing Director, Segun Balogun, in a statement, said the bikes will aid speedy and more scientific claim settlement solution that would make policy holders get compensation faster and more robustly.

    According to him, the solution, first in the industry in Nigeria, would reduce the time frame between accident and claim settlement and encourage more interaction between insurance operators and their clients.

    He said it operates with fully kitted and “ready-to-go” motorbike riders who will always “swing into action” whenever there is notification of a claim.

    Balogun said: “The riders would inspect the accident vehicle at the scene of the accident, adjust the claim and offer an on-the-spot settlement.

    “This novel solution would promote efficient claim settlement response and elicit a more enduring relationship between insurance underwriters and their clients, as many people will, through it, have more confidence in insurance, especially automobile insurance operations.”

    The company’s Deputy Managing Director, Corporate Services, Rilwan Oshinusi, believed that with the initiative, ‘’customers and the public are assured of our focus on excellent service through prompt claims settlement”.

    LASACO Assurance Plc is a registered composite insurance and financial services company in Nigeria that specialises in General Insurance, Oil and Gas Insurance, Asset Management and Investment Financial services.

    The company was incorporated on December 20, 1979 and was granted licence to carry out the business of insurance and other related businesses on July 7, 1980.

    On August 1, 1980, the company started operations.

    In accordance with the decree, LASACO’s shares were offered to the public and were admitted to the Nigerian Stock Exchange (NSE) by way of introduction, thus becoming the first company to be so listed on the NSE. In 1991, the company became a Public Limited Liability Company (Plc). It operates from its headquarters at Ikeja, Lagos State Nigeria with branches and underwriting offices in 13 locations.

     

  • Efekoha is 49th CIIN president

    The Chartered Insurance Institute of Nigeria (CIIN) is to inaugurate the Managing Director of Consolidated Hallmark Insurance Plc, Eddie Efekoha as its 49th president.

    The event would be held at the Intercontinental Hotel, Victoria Island Lagos.

    The Chairman of the investiture committee, Sunny Adeda, made this known at a parley in Lagos.

    Eminent artist Prof Bruce Onobrakpeya would chair the event.

    He noted that Efekoha, the immediate past chairman of the Nigeria Insurers Association (NIA), has the right values and industry pedigree required to ensure that the institute continues to play a relevant role in the insurance sector.

    He described him as a visionary leader whose years of experience in insurance will be brought to bear on the institute and to the insurance sector as a whole.

    He noted that Efekoha has served the institute in various capacities since becoming a member in 1988, stressing that he was at various times the Deputy President of the institute; Governing Council member since 2005; Treasurer of the Institute; Chairman Education Committee; Deputy Chairman, Membership Committee; Member, Merit Award Committee and Chairman, Board of College of Insurance and Financial Management.

    Adeda maintained that as part of the investiture, a golf tournament has been put together by the golf friends of Efekoha, adding that the special golf event would hold on July 28 at the Ikeja Golf Club.

    He added that there would be a closing dinner on the same day after the golf tournament, noting that the event was aimed at bridging the gap between insurance practitioners and the consumers of insurance.

    He maintained that the institute prides itself as having a robust succession plan which has continued to ensure a rancour-free transition from one president to another, stressing that a candidate to the office of the president was expected to have moved through the leadership ladder without blemish.

     

  • ‘Delay in retirement benefits payments transitional’

    The delay in retirement benefits payments to retirees under the    new Contributory Pension Scheme (CPS) is a fall out from the old pension scheme, the Defined Benefit Scheme (DBS), IEI Anchor Pension Managing Director, Glory Etaduovie has said.

    Speaking to insurance and pension reporters in Lagos, Etaduovie said the delay in retirement benefits payments under the CPS should also not be misunderstood to be a deficiency of the CPS.

    Rather, he said the non-payment should be seen as transitional owing to delays in funding past accrued pension liabilities into the CPS by the government.

    He noted that the delays would have been worse had the CPS not taken place.

    He stressed that the new scheme is reducing upfront government’s liability, adding that the Pension Reform Act 2004 is a marriage of all divergent factors.

    Success since then has seen the ‘elimination’ of the very corrupt syndicates stealing pension funds massively, as well as gradual decimation of unnecessary bureaucracy in accessing retirement benefits, he added.

    He said it also provided an efficient platform for establishing and creating a definition for private sector pension which several organisations evaded previously.

    He said: “The pension sector is a large labour employer. But there appears to be a dislike by some civil servants for the contributory pension scheme because, it is thought that it pays lower than the defined benefits scheme. This leads to attempts by some implementers to frustrate it in many states. This is not true as the individual contributors’ funds would grow as the number of years a person is working increases and the investment returns are applied on a compound interest basis. They forget quickly that government can no longer carry such weights directly as it did in the past. At present, it is difficult for many state governments to meet up salary payments. This is the new reality.

    “The fears of delayed retirement benefits payments also exist. This has been misunderstood to be a deficiency of the CPS. No, rather, it is transitional. It is the effects of delays in funding of the past accrued pension liabilities into the Contributory Pension fund by the Government. The delays would have been worse anyway, had the contributory pension scheme not taken place. The CPS is reducing upfront the government’s liability.

    “Quickly forgotten also was the tedious bureaucracy that bedeviled the pursuit of retirement benefits in the recent past. These are the same delays and uncertainties that CPS is bringing a stop to an end. Thus, the transition is like a difficult delivery of a baby into a new world. Those who have benefited or hope to benefit from the past scheme will be clog in the progress wheel. Only recently, the fund survived being cannibalised from various agitations from various quarters for own control of their pensions. It took the will of the CBN, FMF and other strong bodies to disintegrate the seeming ‘coalition’ to unbundle the success story so far.”

    He pointed out that the PRA pension model stimulates individual and national savings culture and helping the people to not only take their destinies in their hands but be responsible for it.

    “To illustrate, children are expected to rise to take their destinies in their hands after a certain level of training by their parents. The PRA model of contributory pension scheme harmonised the public and private sectors in pension’s management. The private sector pensions became harnessed and structured. This was also designed to grow itself through investments and provide liquidity, provide capital for investment and develop the economy, critical infrastructure and long-term investments.

    “The CPS (Contributory Pension Scheme) is maturing. It is responsive to the environment. The peculiarities of Nigeria, its history, its culture leads to various other concerns both for the contributors directly and the nation as a whole. The scheme has exceeded a decade of practice. The industry, despite its success in accumulating such a massive fund (without being stolen or decimated), which is a great feat that no other industry except may be the oil industry is doing, is grossly misunderstood”, he added.

  • IEI-Anchor Pensions eyes N100b assets

    IEI-Anchor Pensions Managers Limited, a Pension Fund Administrator (PFA), said it has exceeded N80 billion assets under its management. It said it is planning to grow the assets to N100billion by next year.

    Speaking with reporters at the company’s headquarters in Abuja,  its Managing Director, Glory Etaduovie,  said with the strategies put in place, the company is eyeing to be in the league of top PFAs with assets under management (AUM ) of N100 billion.

    On half year 2018, he said the company has been able to sustain growth and has achieved 98 per cent of its target for the first half of the year while annual growth rate achieved stands at 25 per cent.

    He stressed that the strategies put in place by the company will enable it to gain 30 per cent from the transfer window platform.

    Also speaking on the Multi-Fund Structure for Retirement Savings Account, introduced by National Pension Commission (PenCom), he said  the fund seeks to improve upon the existing two-fund structure and comprises four Funds, which provide contributors an opportunity to improve their long-term terminal retirement benefits by properly aligning individual contributor’s funds with their individual risk profile.

    He said: “Contributors are expected to take rational decisions based on a thorough understanding of the options available and of individual needs and expectations. The new Multi-Fund Structure seeks to align a contributor’s risk tolerance or appetite with his or her investment return expectations, based on work life cycle. Thus, the RSA Fund has been sub-divided into four Funds, to cater for the different age groups of contributors, including retirees under the CPS.

    “The four Funds to be established and applicable age groupings include Fund I for young contributors. This Fund is growth-oriented and is aimed at young contributors who are 49 years and below. This group of contributors has several working years ahead of them and is in a better position to rapidly grow their pension contributions over a long period of time; and can assume a relatively high level of investment risk.

    “Fund II is default fund/middle-aged contributors. Fund II is the default Fund and is similar to the current RSA ‘Active Fund. Fund III, Pre-Retiree Fund, is the most conservative Fund for active contributors and is designed for those close to retirement age while Fund IV, retiree is essentially a retiree fund and maintains the asset allocation structure similar to the current RSA Retiree Fund, with the exception of ordinary shares and open/closed-end funds, which had been reduced from 10 per cent to five  per cent of total pension fund assets.”

    He stated that the benefits of multi fund will go a long way to develop and stabilise the capital market.

    “The pension contributions are invested in an optimal manner to achieve enhanced retirement benefits. The new structure would help in deepening asset accumulation in the country, and provide the crucial capital required for investment in critical sectors of the economy.

    “This would be achieved by better matching of pension assets and liabilities; as well as diversification of pension fund portfolios, as minimum limits are set for aggregate investments in variable income securities for each fund,” he noted.

  • NITAD confers capacity building award on Ambode

    The Nigerian Institute of Training and Development (NITAD) has conferred an award of excellence on the Lagos State Government in recognition of its commitment to capacity development.

    Speaking at its 26th Annual Trainers’ Conference at the Shehu Musa Yar’adua Centre, Abuja, Governor Akinwunmi Ambode said it is gratifying that third parties have taken notice of the commitment of his administration to expanding the capacities of officers of the state public service for the betterment of the state.

    The Governor, represented by Commissioner for Establishments, Training and Pensions, Dr. Akintola Benson, said NITAD plays a crucial role in Nigeria’s human resources development and management ecosystem.

    He stated that the mission of the professional institute to improve  human resources development practice in both the public and private sectors of the economy is commendable and vital.

    He said: “The Lagos State Ministry of Establishments, Training and Pensions have long been dedicated to envisioning the future of work in the state public service. In our view, the future for the state public service is heavily dependent on the systematic, yet aggressive development of capacities and the innovative and creative use of resources so as to do more with less.

    “I have always emphasised that high performances have been known to increase in organisations that expose their human capital to development through capacity development trainings.

     

  • How state governments can tackle pension backlogs, by experts

    State governments have been advised to set aside sinking funds to address the issue of pension entitlements owed retired workers in their various states.

    South, Premium Pension Limited Executive Director, Business Development and Strategy, Mrs Kemi Oluwashina, gave the advice during a courtesy visit to the Head of Service of Enugu State, Mr Chidi Ezema.

    The visit was to appreciate efforts being made by the state government to join the league of states running Contributory Pension Scheme (CPS).

    She said lack of prompt payment of pension entitlements, especially accrued rights to retiring or retired workers, is blighting the successes recorded in the CPS.

    She explained that a sinking fund is an account that is used to deposit and save money to repay a debt or replace a wasting asset in the future.

    “In other words, it’s like savings in which you deposit money regularly that can only be used for a set purpose,” she said.

    According to her, a sinking fund is essentially established to ease the process of retiring debt or prevent defaulting on debts and can serve several purposes.

    She pointed out that the main purpose is to lower the outstanding principal before it becomes due.

    She said: “There is need for state governments in the country to establish sinking funds to address the problem. The liability of unpaid pension entitlements will never go away until it is frontally tackled as a matter of urgency, while also highlighting the fact that the real value of unpaid pension liabilities gets eroded with time to the detriment of the retirees, who are already passing through untold hardship. If anything, things only get worse when the liabilities keep piling up.

    “Setting aside this special fund is a midway approach to addressing the liabilities. While Accrued Rights are largely entitlement of workers before the advent of the private sector –driven CPS, its late payment by especially, the various tiers of government renders pension administration cumbersome or even impossible. This is because accrued rights have to be lumped into Retirement Savings Accounts (RSAs) before lump sum and Programmed Withdrawals could be worked out for retirees. Most, if not all retirees from government establishments for now have their entitlements locked in both the old Defined Benefit Scheme and the new Contributory Pension Scheme.

    “This backlog of pension liability is more pronounced in most state governments that have not been making any serious effort to address the issue, nor even keyed into the new scheme by domesticating the Pension Reform Act 2014.”

    For instance, while the Federal Government is making efforts to offset the unpaid pension accrued rights for the period covering May, 2017 to April, 2018 which stands at N97.55 billion, most state governments still struggle with the payment of salaries let alone addressing issues of pension.