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Tag: AIICO

  • AIICO partners AutoGenius on ‘Taxify Cover’

    AIICO partners AutoGenius on ‘Taxify Cover’

    AutoGenius, one of Nigeria’s first digital insurance platforms, has unveiled an insurance policy tagged ‘Taxify Cover’ designed to increase driver and rider safety as well as improve the confidence of their user base.

    Taxify Cover, launched with AIICO Insurance Plc, is a comprehensive motor Insurance. It is a special motor insurance product (bundled products) that is customised to provide all the benefits of a comprehensive motor insurance with extended passengers’ liability, loss of personal effects and personal accident covers with a single premium.

    General Manager, Non-Life Business, AIICO, Adewale Kadiri, said the policy is a special Comprehensive Motor Insurance product customised to provide all the benefits of a comprehensive motor insurance with extended passengers’ liability, loss of personal effects and personal accident covers with a single premium.

    He explained that AIICO would provide the underwriting service while AutoGenius will provide the channel and technological platform for the distribution of the product.

    ‘’We are indeed optimistic that this initiative will further expand the insurance market in Nigeria and increase market penetration.

    He said: “The features of this product, among others, are the provision of compensation for accidental damage, third party bodily injury/property damage, theft and fire damage to the vehicle, death/disability/assault to the driver and rider, passengers’ liability and loss of personal effects for the driver and the rider’’.

  • AIICO grows underwriting profit by 326%

    AIICO grows underwriting profit by 326%

    IICO Insurance Group underwriting profit increased by 326 percent from a loss of N5.5 billion in the 2015 financial year to a profit of N12.45 billion last year, despite facing severe macroeconomic headwinds in the period under review, the Chairman, Bukola Oluwadiya, has said.

    He made this known while addressing shareholders during the firm’s 47th Annual General Meeting  in Lagos.

    According to him, the growth was driven by slight underwriting improvements in the non-life business release of the reserves in the life business.

    He said high interest rates reduced the value of long-term insurance contract liabilities of the group, which is recorded as a release in their statement of profit and loss.

    He said as a result of their underwriting performance and increased investment income, after-tax profits increased by 756 per cent to N10.2 billion last year.

    He said: “The movement in long-term liabilities reserves is mirrored by the movements in asset values backing these liabilities. This essentially means that the reduction in reserves is offset by the reduction in asset values.

    The cumulative loss on fair value assets due to increased interest rates is reflected in the available for sale reserves, causing a 11 per cent reduction in shareholders’ funds.

    “This informed our decision to retain a significant portion of the profits and its plan to inject more capital into the business to fund its growth plan and also achieve a resilient balance sheet to withstand market risks.”

    Managing Director, AIICO Insurance Plc, Edwin Igbiti, explained that the company wrote gross premiums of N27.1 billion in 2016, down by N5.8billion from N32.9 billion the previous year.

    “This is largely because of our strategic decision to reduce premiums written in the long-term business like retirement product due to higher market risks, making gross premiums to reduce by N9.2 billion in 2016.

    “We also decided to turn down some unprofitable and low-return insurance premiums making our gross premiums to reduce by N600 million in 2016.

    “Actual investment income increased 27 per cent in 2016 to N7.2 billion from N5.7 billion. Our asset management capabilities continue to be a key strength for the company as we recorded a significant increase in investment income due to high yield,” he added.

  • Leadway, AIICO top 10 insurance firms

    Leadway, AIICO top 10 insurance firms

    report has ranked Leadway Assurance Plc and AIICO Insurance Plc, as the best in terms of assets, Gross Premium Income (GPI) and Profit Before Tax (PBT) in 2015 financial year. They both operate life and non-life business out of the 56 existing insurance companies in the country

    Besides, out of 41 non-life companies, Leadway also emerged as number one with highest GPI of N15.43 billion and has the highest market share of 8.65 per cent in 2015 financial year.

    The report, obtained by The Nation, was published in the 2015 Nigeria Insurance Digest, an annual publication of the Nigeria Insurers Association (NIA) – the umbrella body of insurance companies.

    Under the non-life category, Custodian and Allied Insurance Plc and AXA Mansard Insurance Plc were ranked number two and three with GPI of N14.36 billion and N11.37 billion and market share of 8.04 per cent and 6.37 per cent respectively.

    According to the report, other companies in the top 10 included Mutual Benefits Assurance Plc with a record of N10.5 billion and N 5.91 per cent market share, NEM Insurance Plc with N10.3 billion GPI and 5.8 per cent market share.

    AIICO General Insurance Company Limited has N8.19 billion GPI and 4.59 per cent market share, Zenith General Insurance Company Limited has N8.17 GPI and 4.58 per cent market share, Sovereign Trust Insurance Plc (STI) has N7.1 billion GPI and four per cent market share, Royal Exchange General Insurance Company Limited has N6.8 billion GPI and 3.86 per cent market share and Consolidated Hallmark Insurance Plc with N6 billion and 3.38 per cent market share.

    The report showed the bottom 10 companies in ranking order as Investment and Allied Insurance Plc, with the least GPI of N4.4 million and no market share. Others are Universal Insurance Plc with N728 million GPI and 0.41 per cent market share, Fin Insurance Company Limited with N757 million GPI and 0.42 per cent market share, Guinea Insurance Plc – N870 million GPI and 0.49 per cent market, NICON Insurance Plc has N947 million GPI and market share of 0.53 per cent, Nigerian Agricultural Insurance Corporation (NAIC) has N1 billion GPI and 0.58 per cent market share, Great Nigeria Insurance Plc has N1.4 billion GPI and 0.79 per cent market share, Ensure Insurance Plc, formerly Union Assurance, has N1.5 billion GPI and 0.85 per cent market share, and KBL Insurance Limited with N1.8 billion GPI and 1.01 per cent market share.

    The report further showed that Leadway has the highest assets to the tune of N44 billion and was  followed by Custodian with N27 billion, Zenith N25 billion, AXA N23 billion, Wapic N20 billion, Royal Exchange N18 billion, Linkage N17 billion, Mutual N15.7 billion, Industrial and General Insurance Plc (IGI) N15.2 billion and AIICO N13 billion assets.

    In the life business category, out of the 27 existing companies, Leadway again emerged as number one with N31.2 billion GPI and 23.28 per cent market share, followed by AIICO with N24.2 billion GPI and 18.09 market share, FBN Life N10.3 billion GPI and 7.69 per cent market share, African Alliance N10.1 billion and 7.56 per cent market share, and Niger Insurance Plc N7.8 billion GPI and N5.89 per cent market share.

    The bottom five are Spring Life, which is under regulatory intervention with N32 million GPI and 0.02 per cent market share, NICON with N92 million GPI and 0.07 per cent market share, Unic Insurance Plc has N259 million GPI and 0.19 per cent market share, Goldlink Life, under regulatory intervention, also has N757 million GPI and 0.56 per cent market share, while Wapic Life has N1.2 billion GPI and 0.91 per cent market share.

    Overall, the underwriting performance of both life and non-life/composite companies, totaling 56 companies in Total Assets, GPI and Profit Before Tax (PBT), showed that Leadway emerged the strongest with total assets of N137.9 billion, N46.6 billion GPI and N6.4 billion PBT.

    AIICO recorded assets of N80.7 billion, N32.4 billion GPI and PBT of N1.4 billion. NICON has assets of N39.3 billion, N1 billion GPI and a loss in profit before tax of N11.3 billion. Axa Mansard has a total asset of N37.8 billion, N15 billion GPI and N689 million PBT while Industrial and General Insurance Plc has N33.45 billion assets, N5.42 billion GPI; Mutual Benefit Life Assurance has N32.6 billion assets; N3.3 billion GPI and N151 million PBT.

    Others are Custodian and Allied Insurance with N27.8 billion assets, N14.36 billion GPI and N3.5 billion PBT; Zenith General Insurance has N25.9 billion assets, N8.1 billion GPI and N5.7 billion PBT; African Alliance Insurance has N23.12 billion assets, N10.13 billion GPI and N764 million PBT while FBN Life Assurance has N20.93 billion assets, N10.31 billion GPI and N1.8 billion PBT.

  • Alleged fraud: AIICO suspends, reports agent to police

    AIICO Insurance has reported  one of its agents, Bode Adesanmi, to the police over alleged fraudulent practices. He has also been suspended

    Adesanmi was alleged to have perpetuated fraud against some customers of the company.

    Speaking  with newsmen in Lagos yesterday, its Managing Director, Edwin Igbiti, called on its clients and prospective customers not to pay premium in cash to any agent or worker of the company.

    He said the firm’s attention was drawn to reports about unethical activities uncovered in AIICO Insurance with focus on  one Adesanmi, who is presently being investigated for fraudulent practices and misrepresentation of the company.

    He said: “Consistent with our practice and in line with the processes in the company, upon receiving reports of the fraud allegedly perpetrated by Adesanmi, he was immediately placed on suspension pending the outcome of an investigation that was commenced immediately and which is presently on-going.

    “While we empathise with those who might have fallen victim to this individual’s personal scam, we shall leave no stone unturned in pursuing the case to a logical conclusion and ensuring that all parties get the justice they deserve.

    “It is imperative to clarify here that AIICO Insurance Plc is an underwriter of more than 50 years’ experience, the largest life underwriter in Nigeria and one of the biggest underwriters in the West African sub-region. AIICO has created and sustained a reputation that cuts across the globe as an underwriter of repute, with clientele from within and outside Nigeria and claims profile payment that runs into multi-billion aira.”

    Igbiti said AIICO has since put in place a policy against the payment of cash to individuals.

    According to him, this is visibly indicated on their communication materials and policy documents.

    “We have invested in technology and infrastructure to provide multiple payment channels for payment and renewal of Insurance policies. These channels include: Point of Sale (POS) terminals at our locations, NIBBS &Quickteller payment platforms, Bank Branches, AIICO e-Insurance Web Portal, Third Party Scratch Cards, Direct Debit and Cashier Points at our locations. We encourage our customers to continue utilising these channels which provide instant automation of records.

    “The payment of over N30 billion in claims and benefits between 2013 and 2015 attests to our avowed commitment to prompt claims settlements to our valued customers. Whenever the unexpected happens, AIICO remains duty bound and owe our customers the responsibility to protect their interests. We hereby restate our unwavering commitment to continue to create and protect wealth for our highly esteemed customers,” he added.

  • AIICO Insurance’s profit drops by 53.4%

    AIICO Insurance Plc has recorded a profit before tax of N1.4 billion in the financial year 2015 as against the N3.1 billion it recorded in 2014, down by N1. 6 billion or by 53.4 per cent.

    This was made known in the company’s 2015 full year audited financials posted on its website. The company held its 46th Annual General Meeting last week in Lagos.

    The company also witnessed a decline in its gross premium income as it records N9.94 billion in the year under review as against the N20.55 billion it recorded in 2014.

    The report showed that the book value of equity/shareholders’ funds was N9.4 billion, down by N2 billion or by 18 per cent in 2015.

    The report read: “This is largely as a result of a change in accounting policy – reclassifying ca. N60 billion of fixed income investments from a cost-based valuation to a market-based one thereby valuing at carrying values which are marked-to-market.

    “This was to eliminate the identified accounting mismatch and align the risks and management of the assets and liabilities for annuity.

    “Total assets as at December 31, 2015 is N80 billion, up by N22 billion, which grew significantly as the company reinvested policyholder’s funds and ensured adequate matching of assets to the duration of the liabilities, in particular guaranteed annuities, with estimated life expectancy of 20 years after retirement,” it stated.

  • AIICO Pension has full disaster recovery plan, says Longe

    AIICO Pension has full disaster recovery plan, says Longe

    AIICO Pensions Manager Ltd has disaster recovery plans as required by the regulatory body, the National Pension Commission (PenCom), itsManagingDirector, Eguarekhide Longe has said.

    Longe, who made this known in an interview with The Nation in Lagos, said PFAs are required to have a disaster recovery plan for them to withstand either major catastrophe or minor disruptions that can shut down businesses.

    According to him, the cost of getting a disaster recovery plan in place is more than 40 per cent, hence the non-compliance by some PFAs.

    He said the PFA is part of an insurance group, which has certification for business continuity. He noted that it is the first in the financial service sector.

    “For us at AIICO, we understand that business continuity is very critical. This is why we have very robust business continuity plans, which is disaster recovery.

    “Business continuity is broader than disaster recovery alone, but  some people don’t have disaster recovery facility.

    ”The regulatory authority takes this requirement very serious and has said any PFA that cannot establish a disaster recovery plan should not bother doing the pension business.

    “It costs money to install, more than 40 per cent of the cost of doing business is related to information technology. Some people may say it is difficult for them to afford it, but the regulatory authority has said you don’t have to do this business if you don’t have the resources to invest appropriately.

    “They are taking these things seriously and for us as a self-respecting PFA, we will do things that will keep us competitive,” he said.

     

  • AIICO records N3.2b profit

    AIICO Insurance Plc has recorded a profit before tax of N3.2 billion for year ended December 31, 2014 as against N1.2 billion loss recorded in the corresponding period of 2013, representing a 156 per cent increase.

    The company’s profit after tax also grew by 202 per cent from a loss position of N739 million in 2013 to N2.2 billion in the period under review.

    Gross premium written for the period grew to N33.6 billion representing 42 per cent growth compared to N23.6 billion, while underwriting profit increased by 91 per cent from N2.7 billion to N5.2 billion.

    The company’s total assets for the Group also grew by 38 per cent from N42 billion in 2013 to N58 billion in 2014.

    The Chairman of AIICO Insurance Plc, Chief Dr. Oladele Fajemirokun, at the 45th Annual General Meeting (AGM) of the company, promised that the company would sustain the momentum for profits and market leadership, by becoming a truly world class financial services group and economic powerhouse.

    The Managing Director, Edwin Igbiti, said the company’s financial performance was evidence of its people, a customer-centric culture and high corporate governance standards.

    Earlier, AIICO Board announced the appointment of Mr. Babatunde Fajemirokun as an Executive Director. He was until the the Chief Operating Officer (COO) of the company.

     

  • AIICO completes restructuring, cancels 1.87b shares

    AIICO Insurance Plc has completed its group corporate restructuring and consolidation as the insurance group seeks to enhance its corporate efficiency and reduce costs.

    The restructuring included the consolidation of other subsidiaries, such as AIICO General Insurance Company Limited and AIICO Asset Management Company Limited.

    The consolidation led to cancellation of 1.87 billion ordinary shares of AIICO Insurance Plc, reducing the issued and fully paid ordinary shares of the company to some 6.93 billion ordinary shares.

    It came on the heels of a $20 million convertible loan deal between Aiico Insurance Plc and the International Finance Corporation (IFC).

    AIICO had indicated in January that it had opened discussions on a $20 million convertible loan deal that may see IFC holding substantial equity stake in the Nigeria-listed insurance company.

    Regulatory filing indicated that the IFC, the private sector arm of the World Bank, plans to extend $20 million, about N3.4 billion to Aiico Insurance.

    Under the arrangement, IFC has an option to convert any unpaid part of the convertible loan to equities in Aiico, referencing similar strategy that has seen IFC acquiring major stakes in many Nigerian financial institutions.

    At market valuation, the convertible loan deal could see IFC holding as much as one third of Aiico’s shareholding. Aiico’s issued share capital of 8.80 billion ordinary shares of 50 kobo each is valued at N6.86 billion.

    IFC had made similar arrangement to invest $12.5 million in Custodian and Allied Insurance Plc in 2012. The Custodian deal came through a 4.5 per cent convertible loan stock, an approximately N1.95 billion deal that allowed IFC to convert the debt stock into equities upon the terms of the agreement.

    IFC acquired additional 4.6 per cent equity stake in Ecobank Transnational Incorporated (ETI) Plc, the financial services holding group for all Ecobank banks, including Ecobank Nigeria Limited.

    ETI, which is listed on the Nigerian Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the BRVM, Abidjan, issued more than 838.32 million ordinary shares of 50 kobo each to IFC, through convertible loan deals involving two funds being managed by the corporation.

     

  • Aiico, IFC in N3.4b convertible loan deal

    Aiico Insurance Plc and the International Finance Corporation (IFC) have opened discussions on a $20 million convertible loan deal that may see the global finance company holding substantial equity stake in the Nigeria-listed insurance company.

    Regulatory filing obtained at the weekend indicated that the IFC, the private sector arm of the World Bank, plans to extend $20 million, about N3.4 billion to Aiico Insurance.

    Under the arrangement, IFC has an option to convert any unpaid part of the convertible loan to equities in Aiico, referencing similar strategy that has seen IFC acquiring major stakes in many Nigerian financial institutions.

    Aiico’s share price rose by 4.0 per cent at the weekend to open today at 78 kobo. At current market valuation, the convertible loan deal could see IFC holding as much as one third of Aiico’s shareholding. Aiico’s issued share capital of 8.80 billion ordinary shares of 50 kobo each is valued at N6.86 billion.

    IFC had made similar arrangement to invest $12.5 million in Custodian and Allied Insurance Plc in 2012. The Custodian deal came through a 4.5 per cent convertible loan stock, an approximately N1.95 billion deal that allowed IFC to convert the debt stock into equities upon the terms of the agreement.

    IFC recently acquired additional 4.6 per cent equity stake in Ecobank Transnational Incorporated (ETI) Plc, the financial services holding group for all Ecobank banks, including Ecobank Nigeria Limited.

    ETI, which is listed on the Nigerian Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the BRVM, Abidjan, issued more than 838.32 million ordinary shares of 50 kobo each to IFC, through convertible loan deals involving two funds being managed by the corporation.

    A document submitted to the NSE indicated that IFC acquired the shares through its managed funds-IFC ALAC Holding Company II and the IFC Capitalization (Equity) Fund LP.

    Under the deals, both funds converted convertible debts earlier granted to ETI to shares, with effect from July 1, 2014. The outstanding convertible loans of about $56.39 million for the IFC Capitalization (Equity) Fund LP and $18.10 million for the IFC ALAC Holding Company II were converted to some 628.74 million and 209.58 million ordinary shares of ETI respectively.

    Consequently, ETI issued 838.32 million additional shares, increasing its outstanding shares by 4.9 per cent from 17.21 billion ordinary shares of 50 kobo each to 18.05 billion ordinary shares of 50 kobo each. The conversions automatically reduced ETI’s convertible debts by $75.180 million.

    It should be recalled that IFC had in 2012, through these two managed funds and another fund-Africa Capitalisation Fund Limited, acquired 8.63 per cent equity stake in ETI. It had acquired 1.25 billion ordinary shares at agreed price of 8.0 cents per share, totaling $100 million, about N15.6 billion. ETI then had 13.24 billion ordinary shares outstanding. The supplementary listing of the additional shares issued to IFC increased total outstanding shares to 14.49 billion shares, giving IFC 8.63 per cent post listing.

  • AIICO partners Venia Technologies on auto insurance

    To fast-track the process of selling auto insurance to its customers, AIICO Insurance Plc has signed a partnership agreement with Venia Technologies Limited at the launch of myautogenius.com, Managing Director of the company, Edwin Igbiti has said.

    Igbiti said this is the country’s first online insurance comparison platform that promises to provide car owners across Nigeria with auto insurance policies within five minutes.

    According to him, technology offers insurance companies an unprecedented opportunity to integrate and simplify processes to customers and agents while reducing costs and increasing loyalty in an ever changing environment.

    He said auto insurance has become a very important part of our lives despite the fact that it is mandatory. He added that it is also a unique channel for selling the product with focus on convenience and speed. The website myautogenius.com started live at 12 noon on Monday.