All Posts in "Day: December 18, 2020"

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SUNU Assurances Nigeria Plc, has successfully completed the first phase of its recapitalisation plan by increasing shareholders’ fund to N6.61 billion in 2020 from N3.47 billion in 2019.

The Managing Director of the company, Mr Samuel Ogbogu stated that the increase in shareholders’ fund represents a 90 per cent growth after share reconstruction and capital injection of N3.01 billion.

Ogbodu said that in spite economic challenges, the firm has continued to grow its market share, stressing that the firm will close the year 2020 with a premium production of at least N3.15 billion, as against closing year 2019 with premium production of N2.24 billion, which represents a growth rate of 40 per cent due to the restructuring initiatives and strategic business transformation carried out in recent quarters to mitigate the effect of economic challenges.

He maintained that the company will close the year with claims pay-out of N1.29 billion in 2020, while its underwriting profit grew to N1.22 billion in 2020 from N781 million in 2019, presenting a growth of 56.2 pep cent, which was due to improved technical efficiency in business operations.

According to him, “Bulk of the claims came from oil & gas and motor. He posited that due to the firm’s prompt response to claims settlement, old and new policyholders have being flocking to the firm to underwrite their risks”

“We have continued to focus on our strategic strengthens, centred on our technologically differentiated service delivery and delivery and operation.

“We are also continued to focus our technologically differentiated service deliver and operations. We are also bringing the company more in-like with initiatives that will delight our customers, which are geared towards being a customer-centric company with firm aspirations of achieving sustained and orderly growth in the coming years,” he said.

The SUNU boss, posited that the company is embarking on the growth phase while it remains committed to its strategic objectives and core values, which will also guide the future and culture of the company.

He maintained that the firm has concluded plans to inject N3.5 billion into its kitties through right issue which will be activated by March 2020.

He said business renewal by clients of the company has been awesome, adding that the excellent performance being recorded in renewal process is due to the excellent service offered by the firm.

Patoma Admin by — December 18, 2020 in Insurance 0

By admin

Law Union and Rock Insurance Plc has projected 40 per cent rise in 2021, following the investment of its new owner, Verod Capital Management.

Verod has been injecting quite a number of initiatives as their human capital, rebranding, product innovation and technology have all improved.the company since it came in October

Verod, an Anglophone company has various interest in other insurance companies, Pension Fund Administrator (PFA), Emzor Pharmaceutical Company, technological companies, CSCS Plc, farms, among others.
Law Union, a General Business company has indicated that this is the best deal ever for the company within the insurance sector in terms of recapitalisation.

The Managing Director of Law Union, Mayowa Adeduro in an interview with journalists said the company has gone far on their recapitalization plans.

He disclosed that they are short of inviting the National Insurance Commission (NAICOM) to come and certify them okay, based on the commission’s planned verification exercise scheduled from December 31, 2020.

He stated that the commission gave a mandatory deadline for the completion of the first phase of 50 percent and 60 percent of the minimum paid-up share capital for insurance and reinsurance companies, which they have met.

“When our regulator, the National Insurance Commission (NAICOM) announced the recapitalization exercise, our board and management took it very seriously. We launched out very early looking for two options, merger and acquisition or a buyout. The merger and acquisition did not work out, but the buyout worked out. We were able to get Verod Capital who invested in Law Union and Rock and buy out the previous ownership of the company.

“So, as we are speaking, Verod Capital owns Law union and rock 100 percent through schemes of arrangement which were well publicized. Since their coming in October this year, they have been injecting quite a number of initiatives for us particularly human capital, rebranding, product innovation and technology. We are very glad. They have also been part of business acquisition too in terms of business development. They have been up and doing. As we speak, we are at the threshold of N11 billion naira and we are short of inviting NAICOM to come and do our verification”, he added.

He stressed that by next year, Law union will be in the threshold of 20 billion in terms of capital base while the asset base will be far in essence of 30 billion based on the projection.

He revealed that the entire structure of Tangerine Life and ARM Life which were also acquired by Verod will also serve Law Union positively, as the entire group would be able to work together seamlessly.

Patoma Admin by — December 18, 2020 in Insurance 0
Africa Re affirms A rating from A.M. Best

Africa Reinsurance Corporation has been awarded AM Best financial rating of A (Excellent) and the long-term issuer credit rating of ‘A’. The rating firm also said the outlook of these credit ratings is stable.

According to AM Best, the ratings reflect ARC’s balance sheet strength which it categorised as strongest, coming after is its strong operating performance, favourable business profile and appropriate enterprise risk management (ERM).

The strength of its balance sheet is earned by its adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR).

To retain its capital position, ARC will be supported by high earnings retention, a conservative investment allocation and low underwriting leverage. Besides, ARC has significant exposure to the high levels of economic, political and financial system risk that are associated with operating in the African region.

However, the company is considered to be able to offset this risk partially through its geographical diversification and conservative asset management strategy, with a significant proportion of surplus assets held in North America and Europe, the rating agency asserts.

ARC’s long-term operating performance has been strong, despite challenging market conditions, evidenced by its five-year (2015-2019) weighted average return on equity (ROE) of 9.9 percent. However, AM Best cleared that ROE should be viewed in the context of ARC’s reporting currency, the US Dollar, which somewhat limits the impact of the high local inflation on the company’s reported net income.

The rating company said ARC has demonstrated solid non-life underwriting performance, posting a five-year (2015-2019) weighted average combined ratio of 94.2%. However , underwriting results deteriorated in 2018 and 2019, with non-life combined ratios of 97.9% and 97.4% respectively.

The expectation that the company’s performance will improve over the medium term as the management team continues to implement corrective measures is not cast in iron, 2020 is likely to be another challenging year, the x-ray provided by the agency shows.

ARC’s privileged market access as a composite reinsurer across Africa, and brand recognition, provides it with solid long-term growth prospects as the region’s insurance markets develop. AM Best considers ARC’s ERM framework to be suitable given the size and complexity of its operations.

Patoma Admin by — December 18, 2020 in Insurance 0