All Posts in "Day: December 4, 2020"

Africa Re records $583.68m in Q3 2020

The African Reinsurance Corporation (Africa Re) posted a premium income of US$583.68 million at the end of the third quarter of 2020, a decline of 5.41 percent.

The decline was largely driven by the weakening of some of the major underlying currencies (Nigeria Naira and South Africa Rand) as well as declines occasioned by deliberate portfolio actions to improve underwriting performance.

Technical expense ratios recorded some significant improvements with the Loss Ratio improving by 424 basis points to stand at 62.33 percent from 66.57 percent reported in the previous year. The actions taken on the underwriting portfolio, though negative on premium income, had a positive impact technical expense ratios.

Overall, the net underwriting profit at September 2020 recorded significant improvements to stand at US$12.52 million, up from an underwriting loss of US$11.13 million during the same period in 2019.

The Covid-19 pandemic induced global downturn in the financial markets affected the Corporation firstly by the interest rate cuts and secondly by the significant fall in all equity market indices. Hence, Investment income at the end of the third quarter of 2020 stood at US$33.95million, down from US$47.56million in the corresponding period in September 2019.

The Net profit at the end of the reporting period was US$41.77 million, outperforming previous year result of US$33.65 million by 24.13 percent

The Group MD/CEO of Africa Re, Dr. Corneille KAREKEZI, in his remarks on the performance noted that: “The very good performance recorded in the 9 months is the result of swift implementation of the existing robust business continuity plan, cumulative Management actions taken on the underwriting portfolio, as well as very balanced approach to investment management. These three blunted the impact of the Covid-19 pandemic. We are optimistic of sustaining the tempo till the end of the year barring any unforeseen major losses”.

Patoma Admin by — December 4, 2020 in Insurance 0

By Favour Nnabugwu

The Federal Government has inaugurated 16 members of National Pension Commission (PENCOM) board, to proffer innovative and feasible solutions to the challenges of the pension administration in Nigeria as Dr Oyindasola Oni is the Chairman.

The board chaired by Dr Oyindasola Oni, has Aisha Dahir-Umar, Clement Akintola, Mr Anyim Nyerere, Mr Charles Sylvester, Mr Festus Dauda, Mrs Anita Shitu, Comrade Ayuba Waba, Dr Bobboi Kaigama, Dr Abel Afolayan, Dr Timothy Olawale as members.

Others include Mr Edward Adamu, Mr Lamido Yuguda, Mr Oscar Onyema, Mr Olorundare Sunday, and Executive Commissioner (Administration) representing the North West geo-political zone (pending senate confirmation of the nominee).

Dr. Remi Oyindasola Oni was the Executive Director, Corporate Banking. Until his appointment on April 15, 2016, he was Executive Director, Corporate & Institutional Banking, Nigeria and West Africa at Standard Chartered Bank. He also had concurrent primary responsibilities for the International Corporates Client Segment business for Standard Chartered Bank in West Africa.

Prior to his appointment as Executive Director in Nigeria and West Africa, ‘Remi held a variety of senior management roles including Executive Director/Head of Origination & Client Coverage at Standard Chartered Bank in Uganda and concurrently Regional Head, Network Clients business for SCB in Africa and Head of Local Corporates in SCB Nigeria.

A seasoned banker with over 24 years’ experience in Corporate Banking, Corporate Finance, Commercial Banking and Retail Banking, Remi brings to bear on the Board of FirstBank practical skills set in the areas of deals origination and structuring, relationship management, business management and strategy.

He holds an MBA in Finance from the University of Ilorin, a Doctor of Veterinary Medicine (DVM), as well as Master of Science in Public Health and Preventive Medicine from Ahmadu Bello University, Zaria. He is an honorary member of the Chartered Institute of Bankers of Nigeria (CIBN), a member of the Equipment Leasing Association of Nigeria (ELAN) and the Nigerian Veterinary Medical Association (NVMA).

‘Remi has also attended trainings in many renowned international institutions, including the prestigious Oxford University and INSEAD, Singapore campus. He is happily married and widely travelled.

Mr Boss Mustapha, Secretary to the Government of the Federation (SGF), at the inauguration on Thursday in Abuja, explained that members of the board were also urged to ensure the implementation of sustainable pension policies.

While congratulating the board members, Mustapha noted that Nigeria, in recent times had some challenges in the area of pension administration, in spite of the constitutional and statutory provisions that guarantee pension payment

According to him, “it was these challenges that necessitated the pension reform of 2004, which introduced a mandatory Contributory Pension Scheme (CPS) for employees of both public and private sectors, with few exceptions in the public service.

He, however, regretted that the sector could not meet its mandates of which it was established for, hence the need to re-establish the board to look into the challenges of the sector

“As a government, we are always conscious of our responsibilities with regards to payment of pensions to eligible retirees in the Federal Public Service.

“We are committed to discharging these responsibilities in spite of the perennial challenges, especially as caused by the global COVID-19 pandemic manifesting in dwindling revenue accruing to the nation,” he said.

The SGF, however, highlighted the objectives of the board to include formulating and providing general policy guidelines for the discharge of the functions of the commission.

Mustapha also used the occasion to admonish the board to desist from involving directly in the day to day management of parastatal and agencies.A

Accordingto him, it is only a minister who exercises control of parastatals at policy level through the board of the parastatal.

Respondingn behalf of the board members, Dr Oyindasola Oni expressed appreciation to President Muhammadu Buhari for finding it appropriate to appoint all of them as board members of PENCOM, adding that they were indeed very grateful.

Oni therefore, pledged the board`s commitments to steer the affairs of the commission without any blemish.A

Aisha Dashir-Umar, Director-General of PENCOM, who is also member of the board, gave assurance that the board would work as a team to discharge its responsibilities to achieve the set goals of the commission

Patoma Admin by — December 4, 2020 in Others 0

By Favour Nnabugwu

Over 2, 100 Retirement Savings Account (RSA) holders have applied to move their pension accounts from their current Pension Fund Administrators (PFAs) to a new one.

This is as a result of the launch of the pension transfer window by the National Pension Commission (PenCom).

The Head, ICT, PenCom Polycarp Anyanwu, who disclosed this yesterday at the virtual 2020 Pension Fund Operators Association of Nigeria (PenOp) media retreat for pension correspondents, stated that 2,100 applications were submitted and received by the commission between November 16 and 30, 2020. 

The transfer window known as Retirement Savings Account Transfer System (RTS) was launched by PenCom on November the 16, 2020, in Abuja, in accordance with Section 13 of the Pension Reform Act, 2014, which allows contributors to move their RSA through a transfer window from one PFA to another, provided that it is not more than once in a year. 

Anyanwu noted that most of the pension contributors seeking a switch to a new PFAs were those who were not contented with the service delivery of their current pension fund handlers, a development, he said, would no doubt, enhance quality service delivery of the PFAs to their clients.

Explaining how the window operates, he said, the RTS has four quarters in a year, which are; March 31; June 30; September 31 and December 31 in which contributors can change their PFAs once in a year, adding that, the over 2,100 applications received so far would be processed for the December 31, 2020 window.

 Similarly, the Head, Corporate Communications, PenCom, Mr. Peter Aghahowa, said, the activation of the RSA transfer process would engender competition and improve service delivery in the pension industry, while asserting the right of RSA holders to determine which PFA manages their pension contributions and retirement benefits.

Patoma Admin by — December 4, 2020 in Others 0

According to the information contained in the notification, the private placement worth N4.8 billion is to be raised through the sale of 8,888,888,889 ordinary shares of 50 kobo each of the company, at the rate of 54 kobo per share, in a distribution succinctly captured below:, 5,331,004,445 units (approximately 60 percent of the total allotted units) is to be sold to Charles Enterprises LLC for about N2.88 billion. 

The remaining 3,557,844,444 (approximately 40 percent of the total allotted units) is to be sold to Arubiewe Farms Ltd for about N1.92 billion

According to Investopedia, a private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion.

In this light, it is pertinent to note that private sales are now common for start-ups, as they allow the company to obtain the money they need to grow while delaying or foregoing an IPO

Other key resolutions reached at the Extra-Ordinary General Meeting

Raising the company’s authorized share capital from N10 billion to N10.05 billion.

To raise additional capital via the issue of debt or equity or a combination of both including convertible bonds, loans, stock, bonds with options etc.

Amendment of clause 6 of the Memorandum and clause 5 of the Articles of Association of the company respectively.

Patoma Admin by — December 4, 2020 in Insurance 0

By Favour Nnabugwu

International Air Transport Association’s (IATA) has said Nigeria and 12 other African countries owing proceeds from the sale of foreign tickets to the tune of $516 million as Nigeria alone owes of $53 million.

Others African states are Zimbabwe $160 million; Eritrea $79 million; Algeria $54 million; Ethiopia $52 million; Sudan $45 million; Libya $27 million; XAF Zone $27 million; Angola $9 million; Mozambique $6 million; Burundi $3 million and Zambia $1 million. 

The Regional Vice President for Africa and the Middle East (AME), Mr. Muhammed Albakri made this known at its 76th Annual General Meeting initially scheduled in June in Amsterdam, was held on 24 November 2020 as a virtual event, sponsored by KLM Royal Dutch Airlines.

He said Nigeria is not the only country with trapped funds but fourth among 12 others with similar issues

Albakri explained that foreign airlines operating into Nigeria are having difficulties repatriating the fund back to their operational base.

He said, “IATA has been at the forefront of the campaign, soliciting governments’ support for the aviation industry in order to salvage the situation.”

The IATA’s disclosure is an indication that the airlines could not access foreign exchange (forex) by operators due to COVID-19 pandemic, as most countries are struggling economically with its attendant effect on global airline industry.

International airlines are owed $824 million globally and $516 million out of $824 million in blocked funds is in Africa. With the IATA revelation, it means the rest of the world has $308 million of the blocked funds.

Patoma Admin by — December 4, 2020 in Aviation 0

By Favour Nnabugwu

The Chartered Insurance Institute of Nigeria has advised Nigerians to obey covid19 regulations as they celebrate this yelutide season

The CIIN in it’s Twitter handle yesterday remind Nigerians that Covid-19 is still prevalence therefore they should obey all precaution rules
According to CIIN, “As you go around doing your shopping and taking part in the merriment associated with the season, don’t forget to observe Covid-19 safety protocool. It’s important to enjoy but most important to stay ALIVE”
The President of the CIIN, Mr. Muftau Oyegunle had said that the focus of his tenure will be reinforcement of Professionalism and Ethics in the insurance industry, even as COVID-19 forces a new work culture.

Oyegunle listed the six-point agenda to include Digital Transformation of the Institute, Reinforcement of the Relevance of Professionalism and Re-energizing the Institute’s Administrative Structure.

Others are, Insurance Awareness and Youth Mentorship Initiatives, Infrastructural Development, and Advocacy and Collaboration with various Associations in the Private Sector.

The institute’s new president said that though the world was at the mercy of COVID-19 pandemic, it could not surrender to it.

Oyegunle said the institute would continue in its stride to achieve desired results by adapting to strategies and change to the ways of doing things.

“I have come at a time we need to change our strategies to the new normal.

” Our reactions to these disruptions will determine our position today and in the future.

” These disruptions are here and it has come with new challenges that call for the reinforcement of our professional calling.

“Current development in the world call for our collaborative efforts to reinforce professionalism.

” The Nigerian economy in general and the Insurance Industry is not immune from the vagaries of the social and economic disruptions caused by the pandemic.

“The resultant harsh business environment has become a threat which we must collectively confront for survival, ” he said.

Oyegunle said that the current administration would build on the effort made by past presidents of the institute in the area of digital transformation to remain relevant.

He said the programme would be pursued to create new operation process and work culture at the Secretariat.

According to him, the programme will be pursued to lay the required base for the continued relevance of the secretariat in the new order.

“This is what we need to do to change our customers’ experiences, operational processes and business model, ” he said.

The CIIN president solicited for financial support from industry stakeholders and friends to change the face of the institute in the era of a new normal.

Oyegunle lauded the past or esidents for their pioneering roles, saying he hoped to share from their experiences.

Patoma Admin by — December 4, 2020 in Insurance 0

By admin

LIoyd’s of London has received final approval from the High Court of England and Wales to transfer its European Economic Area (EEA) operations to its Brussels-based subsidiary, Lloyd’s Insurance Company (Lloyd’s Europe) effective December 30, 2020

The establishment of Lloyd’s Europe was first announced in the wake of Britain’s vote to leave the EU.

The transaction will take effect from 30 December 2020. All existing European activities in London will then be transferred to Brussels.

Approved and regulated by the National Bank of Belgium, Lloyd’s Europe LIoyds Brussels started operating in early 2019. The company is able to underwrite non-life risks in all 30 countries of the EEA.

Speaking as part of a panel at the Fitch Insurance Roadshow 2019 event in London,, Harley Spin, Head of Global Operations of LIoyds acknowledged that the transfer would be a monumental process for Lloyd’s, but remained confident that it could be completed by year-end 2020.

We’re going to need the entire transition period for sure,” she said. “We’re looking at the moment to see how we can expedite that as much as possible to make it as least painful for the policyholder. That’s the key thing for us, and certainly for our distribution channels as well.”

Asked whether the transfer process may extend beyond 2020, Spink replied: “Well we’re certainly working towards that date, and all the plans that I have in front of me are showing that we will … So yeah, come what may we will make that happen.

Lioyd’s established its new European hub in Brussels last year to ensure that re/insurers operating in its market can guarantee continuity of service to customers in the European Union (EU) following the UK’s planned departure in March 2019.

The Belgian subsidiary began underwriting in January 2019, but the process of moving Lloyd’s UK contracts over to the EU unit is expected to be considerably more challenging than for other insurers using a similar Brexit strategy.

Parts of it are going to be huge for Lloyd’s,” Spink told panellists at the Fitch event. “You know, we’re going right back to the days of R&R in the nineties and any policy that had any EEA element within it is going to need to be transferred into Lloyd’s Brussels.

It’s going to be far more complex than it would be for a straightforward insurer,” she continued, adding that Lloyd’s has been “really lobbying hard to try to find a political way of dealing with this.”

Patoma Admin by — December 4, 2020 in Insurance 0

By Favour Nnabugwu

Consolidated Hallmark Insurance (CHI) Plc has renewed the Group Personal Accident Insurance cover worth N24 million sum assured for insurance journalists in the country to September 2021

This, according to the company, is part of its Corporate Social Responsibility (CSR) project, to ensure that journalists who are exposed to danger and hazard in the discharge of their civic duties are adequately protected.

The Group Personal Accident Insurance covers death, permanent disability and medical expenses.

The policy, now in its 9th years, has been running since 2012, and is renewed annually by the company. The cover was renewed in October, 2020 and it is due to expire in September 2021.

The policy covers all members of the National Association of Insurance and Pension Correspondents (NAIPCO) across the country while the company has promised to continue to renew the coverage for the journalists every year.

Reacting to this development, the Group Managing Director/CEO, CHI, Mr. Eddie Efekoha said this gesture is to show the kind of values and respect his insurance firm has for journalism, believing, journalists, who are the shapers of the society, and by extension, the insurance industry, must be well taken care of.

Journalism, he said, is a risky profession, hence, the need to adequately provide insurance for those covering the insurance industry.

In the case of the death of any of the concerned journalists, he said, the family of the deceased is entitled to N1 million death benefits. “A journalist who suffers permanent disability in the discharge of his duties will also be entitled to N1 million. The cover provides for medical expenses to the tune of N200, 000 per journalist in the case of an accident,” he pointed out.

Applauding the initiative, the Chairman, NAIPCO, Mr. Chuks Udo Okonta, said this is a rare gesture from CHI, as part of its CSR initiative aimed at impacting lives of IRS Immediate community.

He, on behalf of all members of the association, thanked the company as well as its GMD, Mr. Eddie Efekoha, for recognising the pivotal roles journalists are playing in the society and indeed insurance industry, promising that, this will serve as moral boosters for his members to continue to discharge their duties ethically and professionally with exhibiting any fear or intimidation.

He was particularly happy for the fact that in 2013, Mrs. Bimbo Oyetunde of Radio Nigeria received medical bill compensation from CHI after she was involved in a ghastly motor accident alongside other members of the Nigerian Union of Journalists (NUJ) on their return from Abuja after an official assignment where three people died.
To him, ” Your company has lived up to expectation in the past when one of our members benefited from this policy and that, we are grateful for. Although, we don’t pray for hazard to happen, but we are relaxed that if the unexpected happens, CHI is always there for us.

Patoma Admin by — December 4, 2020 in Insurance 0