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Tag: IGI

  • IGI gets new management

    Industrial And General Insurance Plc (IGI) has announced the appointment of a new management to be led by Bayo Folayan, who was named the Acting Managing Director.

    In a statement by the Head, Corporate Communication of the firm, Steve Ilo, the appointment is in line with the company’s restructuring programme aimed at repositioning it for optimum performance.

    According to him, Shade Ajayi, becomes the firm’s Acting Executive Director, Technical and Operations, Nnamdi Iwuoha, acting Head, Technical Division, Bolade Ashaolu, acting Head, Marketing, and Emmanuel Udoh, acting Chief Finance Officer, adding that appointments take immediate effect.

    He said the Board of Directors noted that the new team would occupy the positions in acting capacities, pending when substantive officers are appointed in line with the regulations of the National Insurance Commission (NAICOM).

    According to the statement, the development follows the retirement of members of the executive management led by the Managing Director/Chief Executive Officer, Rotimi Fashola, alongside the Deputy Managing Director, Sina Elusakin, both of whom have served the company in various positions for over 20 years.

    He added that the Executive Director, Finance and Accounts, Yinka Obalade, also retired, while his Information Technology, Human Resource and Administration counterpart, Mrs. Foluso Gbadamosi, tendered her resignation.

  • IGI pays N1.2b claims in eight months

    IGI pays N1.2b claims in eight months

    Industrial and General Insurance Plc (IGI) has paid N1.2 billion as claims to its policyholders in eight months (January-August), this year. This brings the amount of claims paid by the underwriting firm since 2015 to N3 billion.

    This was contained in a statement made available to reporters by the firm. A breakdown of the eight months payments showed that the amount paid as claims under Individual life insurance amounted to N746.4 million while N157.2 was paid on Group life.

    Others include N273.5 million paid on General Business, consisting of N107.2 million on oil and gas insurance, N41 million on engineering and N56.5 million on motor insurance, among others.

    The firm further said the payments were in line with its resolve to settle all outstanding claims and obligations due to customers as quickly as possible.

    ‘’Our ongoing corporate transformation and restructuring makes prompt payment of claims inviolable. It is for this reason that, despite the current economic constraints, IGI will continue to pursue policies that gladden customers and strengthen public trust in the company, customers as quickly as possible,’’ it said.

  • IGI relocates head office

    Industrial And General Insurance Plc (IGI) has moved its corporate head office on Victoria Island, Lagos to its own five-storey building at Agoro Odiyan, in the neighbourhood of the Saka Tinubu business district of Victoria Island, Lagos.

    In a statement, the company’s Head of Corporate Affairs, Steve Ilo, said the relocation is in continuation of the restructuring process launched by the management to reposition the company for greater efficiency.

    He said IGI began operations as a composite insurer in 1992 with its headquarters at Adeola Hopewell Street, a rented facility.

    Addressing the shareholders at the company’s annual general meeting in Lagos in April, the Managing Director, Mr. Rotimi Fashola, hinted about the relocation from the rented facility, which he said was part of the strategic measures aimed at improving liquidity and operational efficiency.

    He said: “We are committed to right-sizing and blocking wastages in order to boost liquidity; that is why we obtained the National Insurance Commission (NAICOM) approval to restructure our assets. We need funds to sustain our present policy of ensuring prompt payment of claims, commissions and other obligations.

    “NAICOM had recently granted IGI the go-ahead to convert part of its long-term assets to liquidity. This is to enable the company to restructure its massive investment in real estate and subsidiaries, amounting to billions of naira, by offering them for sale and ploughing back the proceeds into its day-to-day operations.

    “IGI is opting for asset restructuring as part of measures to raise liquidity for the repositioning of the company in the core business of insurance. Already, the company has concluded plans to divest from under-performing subsidiaries anywhere they are, with a view to concentrating fully on insurance business in Nigeria.”

     

  • IGI chief Fashola is WAICA president

    IGI chief Fashola is WAICA president

    Managing Director, Industrial and General Insurance Plc (IGI),Rotimi Fashola has been elected the president of the umbrella body of insurance practitioners in the sub-region, the West African Insurance Companies Association (WAICA),

    Fashola, who succeeds Ivan Ayereyireh, a Ghanaian, was elected at the association’s 38th annual general meeting (AGM) and education conference  in Lagos. It  attracted delegates from the various member-countries in the sub-region.

    In his acceptance speech, Fashola promised to pursue WAICA’s primary responsibility of protecting the interest of its members and grow the business of insurance in the sub-region.

    He said: “The executive under my leadership, with the support and cooperation of all members, shall embark on an intensive membership drive as part of effort to engender the relevance of our industry to the growth of our various nations,” he said.

    “Efforts will be geared towards establishing local associations in member-countries, encouraging more French-speaking countries and other industry players, including reinsurance companies, loss adjusters to join WAICA, and initiating the process of erecting an office complex to be called ‘WAICA House.’

    The dignitaries that attended the conference include representative of the Minister of Finance, Mrs. Kemi Adeosun, founding father of WAICA, Prof. J. O. Irukwu, the Commissioner for Insurance, Alhaji Mohammed Kari, with his counterparts from other member countries, among others.

  • IGI gets NAICOM’s nod to restructure long-term assets

    IGI gets NAICOM’s nod to restructure long-term assets

    The National Insurance Commission (NAICOM) has approved plans by the Industrial and General Insurance (IGI) PLC to convert part of its long-term assets to liquidity.

    The company made this known in a statement signed by its Head, Corporate Communications, Steve Ilo in Lagos.

    He said with the approval, IGI can  restructure its investment in real estate and subsidiaries, worth  billions of naira, by offering them for sale and ploughing back the proceeds into its operations.

    He also said IGI was opting for the restructuring as part of measures to raise liquidity for the repositioning of the company in the core business of insurance.

    The statement said: “We launched a strategic transformation policy in 2014, which is running well with great expectations for the future. The company needs money to boost its liquidity and enhance its capacity to meet all obligations promptly, including payment of claims.”

    “Already, the company has concluded plans to divest from under-performing subsidiaries anywhere they are, with a view to concentrating fully on insurance business in Nigeria.

    “IGI remains the most endowed insurer in asset base and we want to leverage that strength to restore our leadership in industry. Some of the properties are already up for sale,” the statement added.

    The company, which paid over N3 billion claims to policyholders between 2014 and last year, listed its priorities as meeting obligations promptly, maintaining corporate integrity and delighting the customer and other stakeholders.

  • IGI pays N2b claims

    THE Industrial and General Insurance (IGI) PLC paid N2 billion as claims to its policyholders last year, Managing Director, Rotimi Fashola has said.

    He made this known in a statement over the weekend.

    He said the money was  disbursed last year in its determination to settle all outstanding claims and obligations promptly.

    The lion’s share of the claims  went to life business which amounted to N1,277,683,000, while non-life business totalled N714,936,000.

    He said: “We are focused on our resolve to clear all backlog of claims in the earliest time possible. The result we have achieved so far is encouraging and there is no resting on our oars. In our renewed effort to improve our market share, putting the customers first and treating them with utmost transparency and fairness is sacrosanct. Our ultimate aim is to delight our customers and be seen to be their most trusted partners in wealth creation and protection.

    “IGI is investing on modern technology in all areas of its business that will provide user-friendly online processes through which customers can get real-time support from the company. As a customer-centric organisation, we want to provide policyholders with easy and secure access to their policy information and the convenience of performing self-services from their computers and mobile devices.

    “Our restructuring policy is hinged on pursuing new initiatives and creating opportunities in order to deliver on its promises to all stakeholders while maintaining its integrity at all times,” he added.

  • SLOT, IGI introduce smartphone screens’ cover

    Slot Systems Limited  and Industrial and General Insurance Plc (IGI) have introduced a cover that allows customers to insure their phone screen against damage.

    Speaking on the policy, a representative of Slot, Jane Smith, said a customer could get a new phone if  it is insured.

    According to her, the new policy is aimed at creating awareness about insurance to phone users and saving owners the stress of getting a new phone or wasting money to repair the phone screens.

    She explained that the screen insurance ensures the cost of replacing any damaged phone screen that has been insured would be handled by the insurance company adding that phone users can only insure a newly purchased phone and not an old mobile phone.

    She said new phones worth N18,500 and above were qualified for the cover, adding that premium is N500.

    ‘’We urge customers to take advantage of the insurance policy which provides cover and compensation in the cause of any damage to the screen of their phones,’’ she said.

  • NAICOM orders IGI to engage auditing firm

    NAICOM orders IGI to engage auditing firm

    • UnityKapital board barred from meeting

    The Federal Government has issued regulatory orders on Industrial and General Insurance (IGI) Plc and Unitykapital Assurance Plc to checkmate any irregularity that the companies may have in their financials.

    The government through the National Insurance Commission NAICOM) said this is in exercise of the powers conferred on it by the enabling Laws.

    In a statement endorsed by its Head, Corporate Affairs, ‘Rasaaq ‘Salami explained that the orders which were conveyed in separate letters dated July 30 and 31, 2015 were signed by the Deputy Commissioner (Technical) Mohammed Kari who has since July 31, this year being appointed by President Muhammadu Buhari as the new Commissioner for Insurance and Chief Executive of NAICOM.

    NAICOM directed IGI to appoint an auditing firm from among KPMG, PWC and Delloitte to conduct a comprehensive financial review of the company while it restrict the Board of UnityKapital from holding any meeting or taking any further decisions in respect of the affairs of the company.

    The Commission said both regulatory orders are with effect from August 3, 2015 and for initial periods of six months in the case of IGI and 90 days for UnityKapital adding that the orders may be extended to such a period when the Commission is satisfied that there is no potential risk to policyholders of each of the companies.

    The statement read: “The Commission directs IGI to appoint an auditing firm from amongst KPMG, PWC and Delloitte to conduct a comprehensive financial review of the company and submit the report to the Commission within two weeks of the date of the regulatory order.

    “The firm will undertake a comprehensive review of IGI’s accounting system; conduct capital verification and validate the financial position of the company as at July 31, 2015.

  • IGI pays N3.5 billion claims

    IGI pays N3.5 billion claims

    Industrial and General Insurance Plc (IGI) has paid about N3.5 billion claims to its policy holders, the Group Managing Director, Rotimi Fashola has said.

    Fashola, who made this known to reporters in Lagos, said the management and board members of the company are determined to regain market leadership and delight shareholders with robust returns on investment.

    He said they have carried out a holistic appraisal of their operations and taken steps to address their limitations. According to him, the challenges confronting them are being tackled head-on and they are vigorously pursuing a policy that will ensure prompt payment of claims and commissions, an issue which has always generated controversies and bad blood in the insurance industry.

    Fashola noted that the challenge of getting their accounts ready on time and approved by the regulator body, the National Insurance Commission (NAICOM), has been addressed. He said the problem apparently was caused by their international subsidiaries, which had different accounting standards.

    He said: “There has been appreciable improvement year on year and things will continue to get better, as we are committed to NAICOM’s directive that accounts should be presented by April. With the full cut-over to the International Financial Reporting Standards (IFRS) and the experience curve we now have, future accounts will be out as at when due.

    “For us in IGI, it is a new dawn. The pedigree of IGI is well known to most of you in this gathering. The company started operations in 1992. In 1996, barely four years after it commenced business, it became the first private insurance company in Nigeria to achieve one billion naira in premium income.”

    He noted that in 2004, the company maintained its leadership position in the industry with a record premium income in excess of four billion naira, the highest at that time in terms of volume of business by any private insurance company in Nigeria.

    “In 2005, IGI launched the African Expansion Programme, which underlined its resolve to be a key player in the African insurance market. This initiative led to the acquisition of 60 per cent majority shareholding in the National Insurance Corporation (NIC), Uganda’s number one insurance company, after a competitive international bidding exercise. This ground-breaking feat was followed by similar investments in Sonarwa and The Gamstar, the largest insurance companies in Rwanda and the Gambia respectively, where IGI has the controlling shares.

    “It is important to mention that one of the intentions of the Africa Expansion Programme was to complement efforts of the Federal Government to strengthen Nigeria’s foreign investment profile, especially within the African region. This explains why IGI is flying Nigeria’s flag overseas by playing significant roles in the economies of other countries in the continent.

    “Today, IGI is a household name in East Africa, as its investments in the region are doing very well and running profitably. We are proud to note that our foreign investments have encouraged and emboldened other businesses, especially banks, to make a foray into other African countries. The insurance industry and our national economy are the better for it.

    “IGI remains the most endowed insurer not only in operational spread, but also in asset base. That strength is being leveraged to restore IGI’s dominance in its chosen markets and products. Currently, our investment in real estate/landed properties and subsidiaries is huge and concentrated. It is worth about N22 billion, which far exceeds the threshold stipulated by law. The concentration is largely due to the crash of the quoted equities market. However, we have started restructuring our assets and offering some of the properties for sale. This is aimed at boosting our liquidity and enhancing our capacity to promptly meet our obligations. The restructuring has generated over N2 billion in the last one year, part of which has been ploughed into repositioning the company.

    “Our expansion in Africa, branches in Nigeria and other investments are all reflected in our financial statements. We are taking a long-term view of our investments and are already benefiting from the diversification effect on our portfolio. Our next phase is to consolidate those investments in a way that grows return on investment and shareholder value. Therefore, we have rested further expansion in the meantime to enable us concentrate.

    “We are restructuring our operations and repositioning the entire organisation for optimum performance for the benefit of our business, our investors and all stakeholders. In particular, our marketing team has been strengthened and streamlined to serve the brokers more expeditiously. To this end, six brokers units have been created for effective and efficient service delivery, including ensuring real time documentation and payment of commission,” he said.

  • New IGI boss calls for review of insurance regulations

    New IGI boss calls for review of insurance regulations

    The  Group Managing Director, Industrial and General Insurance Plc (IGI), Rotimi Fashola, has called for a review of some of the regulations by the National Insurance Commission (NAICOM), saying such a measure would lead to a greater contribution of insurance products to the nation’s Gross Domestic Product (GDP).

    Fashola, who has just been appointed CEO of IGI, said a re-examination of some of these policies  would determine their effectiveness and ensure they are not counter-productive to the industry.

    He listed the ‘No Premium No Cover’, Inadmissible foreign investment; Restriction on insurance investments and recognition of offshore investments; Insurance of oil and gas imports; Cabotage Act 2003; Amendment of Companies Income Tax (Amendment) Act 2007 and Multiple taxation of insurance companies by different tiers of government as some of the issues begging for review.

    He urged the Commission to also look into government’s patronage of insurance services and the need for prompt payment of premium, Brokers’ yearly renewal of license and Investment in properties and the encroachment on insurance business by government agencies  which try to provide insurance protection to aviation passengers and public liability for nuclear risks.

    Fashola also argued for the need by the government to support the quest for accelerated insurance penetration in Nigeria through micro insurance and takaful insurance, saying that NAICOM under the leadership of the current Commissioner, Fola Daniel and his deputies, has done well in stabilising the industry.

    He said: “The Commission deserves applause for introducing the Market Development and Restructuring Initiative (MDRI) designed to promote compulsory insurances, the rejuvenated policy of No Premium No Cover; the regulation on micro-insurance and the exposure of the draft on market conduct guideline, that focuses regulation on ethics and best practice principles. NAICOM must be commended for always making it a point of duty to put the industry on notice early enough before full implementation and application.

    “However, for an industry that still needs to grow and contribute to the nation’s GDP, it is imperative that some of the current regulatory interventions are re-examined thoroughly to determine their effectiveness and to ensure that they are not counter-productive,” he stated.

    On ‘No Premium No Cover’, Fashola explained that it is true that many government Ministries, Agencies and Departments (MDA) were no longer insuring their assets because of the delay experienced in the approval of their budget, adding that based on this, operators are advocating for these agencies to be exempted from No Premium No Cover, as this would encourage them to embrace Insurance.

    He said allowance should be made for this category since their receivables are always collected even when there’s  delay.

    On investment in properties, he said the Insurance Act 2003, pegs investment in landed properties at 25 per cent and 35 per cent for General Business and Life Business respectively, arguing that this needs to be reviewed in the face of the crash in the stock market which led to some insurance companies losing much of their investment in the past.

    “The encroachment on insurance business by government agencies  which try to provide insurance protection to aviation passengers and public liability for nuclear risks, is also an issue. The Federal Government in 2007 divested its interest in Insurance business when it sold NICON and Nigeria Re, on the understanding that such concerns are better managed by the private sector. But ironically, the same Government extracted workmen’s compensation insurance business and transferred it to NSITF as Employee Compensation Scheme,” Fashola said.

    “In similar vein, the Federal Government transferred pension business from the insurance industry to the Pension Fund Administrators; while it also moved health insurance from the insurance industry to the Nigeria Health Insurance Scheme (NHIS). It is my hope that the income from both sides are credited to the Insurance industry in determining its true contribution to GDP, as the income should have been earned by insurance companies if not for government intervention and operation of the law.

    He said feelers from official quarters indicate that the Nigerian Civil Aviation Authority (NCAA), under the Ministry of Aviation, is planning to establish insurance fund for aviation passengers’ liability. All over the world, aviation passengers’ liability is subject to international conventions and the risks are covered by conventional insurance policies; Nigeria cannot be an exception. Similarly, the Nuclear Agency wants to establish fund for nuclear damage insurance, instead of seeking conventional Insurance cover for the risks which are covered in international insurance market.

    He continued: “Government and its agencies have been paying lip service to the importance and benefits of insurance, without serious patronage and support. There is hardly sufficient budget provision for payment of insurance premium by government and its agencies. Therefore, when insurance services are patronised, payment of the premium becomes an issue, a clear negation of the provisions of the law on “No premium, No cover”. Some government parastatals or enterprises are funded without allocation for insurance. Many insurance policies contracted by the MDAs in the past were not renewed, thus leaving the assets exposed to risk, damage and losses without insurance protection.

    “Many of the parastatals are no longer contracting insurance, certainly in breach of some of the compulsory insurances, because of the government budget system. It is my considered opinion that exemption be granted to Government in the strict application of Section 50, ‘No Premium No Cover’. The reason is that government debt is a statutory, sovereign debt which will be paid by succeeding administration.”