All Posts in "Day: February 22, 2021"

American International Group (AIG) reported a net loss of 5.973 billion USD as at the end of December 2020 compared to a net profit of 3.326 billion USD in 2019.

The American insurer’s results are strongly impacted by the coronavirus and natural disasters’ losses.

On 31 December 2019, the gross written premiums reached 33.946 billion USD compared to 34.738 billion, thus degrading by 2.2 percent

The combined ratio was set at 104.3 percent compared to 99.6 percent by late 2019.

AIG net income attributable to AIG common shareholders of $1.7 billion, or $1.98 per diluted common share, for the first quarter of 2020, compared to $654 million, or $0.75 per diluted common share, in the prior year quarter. The improvement was primarily due to $3.5 billion of pre-tax net realized capital gains largely related to mark-to-market gains from variable annuity and interest rate hedges and the impact of our non-economic non-performance risk adjustment, per GAAP, on the fair value of our liabilities compared to $446 million of pre-tax net realized capital losses in the prior year quarter.

Adjusted after-tax income attributable to AIG common shareholders was $99 million, or $0.1 1 per diluted common share, for the first quarter of 2020, compared to $1.4 billion, or $1.58 per diluted common share, in the prior year quarter. The decrease was primarily due to lower net investment income driven by declines in equity markets and losses on FVO bonds from widening spreads in credit markets, and the impact of COVID-19.

Brian Duperreault, AIG’s Chief Executive Officer, said: “In the face of COVID-19, an unprecedented global catastrophe, our colleagues have shown great resilience and remain focused on what we do best, which is helping our clients manage risk, especially in difficult times.

“It has been heartbreaking to watch this humanitarian crisis unfold over the last few months. At the same time, the courage, compassion and empathy that have emerged, particularly from first responders, health care providers and others on the front lines, has been heartwarming. AIG is committed to assisting with relief efforts across the globe and will be making an inaugural $5 million contribution to our recently reinstated AIG Foundation for this purpose.

“AIG was in a strong financial position before this crisis began and remains in a strong financial position today. While we believe COVID-19 will be the single largest CAT loss the industry has ever seen, the significant body of work our team has undertaken since late 2017 has served us well as we navigate through this evolving situation. AIG is well-positioned to emerge as a global insurer of choice with significant financial flexibility.

“In the first quarter of 2020, our core businesses delivered strong results building on the momentum we had coming into the year. In General Insurance, the adjusted accident year combined ratio continued to improve, and Life and Retirement delivered solid results despite unfavorable capital markets and continued low interest rates.

“The COVID-19 crisis has created significant uncertainty, and it will take time to understand its broader ramifications. In light of this, AIG is withdrawing previously issued guidance, including that relating to Adjusted Return on Common Equity. However, we do expect to see continued improvement in General Insurance, particularly in the adjusted combined ratio, and, in Life and Retirement, we do not believe that the impact of COVID-19 will result in a material reduction of our long-term return profile.

“While the new normal COVID-19 will create for each of us is still unknown, I am confident that AIG will continue to move forward on its journey to become a top performing company and leading insurance franchise.”

      Patoma Admin by — February 22, 2021 in Others 0

      By Favour Nnabugwu

      Third-party liability motor insurance sales through the Unstructured Supplementary Service Data (USSD), channel, otherwise known as mobile insurance, are being undermined by rate cutting.

      This is due to the fact that some insurance companies still sell third-party motor policies below the standard price of NGN5,000 ($13.12).

      The USSD is a simple self-service solution that enables car owners/users to purchase authentic third party motor insurance via their mobile phones.

      The platform guarantees customer convenience, easy and secure access, real-time interaction and speedy service.

      Consequently, most customers would rather buy at the reduced rate than through the USSD channel.

      The Nigerian Insurers Association (NIA) took a bold steps in the fight against fake motor insurance policy in Nigeria as it launched the Unstructured Supplementary Service Data (USSD) code *565*11# that would enable motorists verify the authenticity of their insurance policies.

      The former Chairman of the NIA, Mr Tope Smart, at the launch in Lagos, said the device was designed to bring insurance closer to the people and ultimately eliminate fake insurance certificates in the market.

      He noted that in 2010, the association took a major step towards eliminating fake insurance certificates in the market, as it initiated the Nigerian Insurance Industry Database (NIID), stressing that the database went live in 2011 and insurance policies obtained by motorists could be checked real time online on the internet and through dedicated hand held devices

      He said the objective of the NIID is to serve as an authentic database of the Nigerian insurance industry, providing qualitative statistics/analysis of the industry data, as well as a vehicle for easy verification of genuine insurance certificates by all stakeholders and to reduce incidences of fraudulent insurance transactions, especially for motor and marine policies.

      Smart posited that the industry has continued to reap the benefits of the scheme, adding that prior to the establishment of the platform, cloning and faking of insurance certificates was a thriving business, but the establishment of the database has assisted the industry in reducing the incidents of fake insurance certificates in the market and that presently, there are over three million vehicle details on the platform.

      “The NIID platform had been operational nationwide, but with challenges in verification in areas with poor internet coverage.

      Verification of motor certificates through the dedicated devices became highly impaired due to the vicissitudes of internet operations in the hinterlands. This led to the introduction of the USSD technology.

      “The USSD is a Global System for Mobile Communication (GSM) technology used to send text between a mobile phone and an application programme in the network. It works independent of internet connectivity. In this instance, any mobile phone (not necessarily a smartphone) would communicate with the NIID system to retrieve policy status whenever required.
“It is hoped that with the USSD, we would have fully overcome the problems associated with the dedicated devices as it guarantees uninterrupted service throughout the country and on all networks. Our existing and prospective customers now have the opportunity to confirm the genuineness of their respective policies at the time of purchase to avoid any embarrassment should claim occur,” he said.

      The Acting Managing Director, Nigeria Inter-Bank Settlement System, Niyi Ajao, said the device will assist motorists in acquiring genuine policies and getting claims whenever there is problem with their insured vehicles.

      He said the device operates on platforms of the major mobile telecommunications providers in the country, stressing that it is a win-win for insurance operators and motorists.

      Managing Director, Courteville Business Solutions Plc, Dr. Adebola Akindele, said there is huge insurance potentials in the country and urged insurers to take the campaign on the device to states where there are presently less enforcement and millennials who are mostly consumers of technological devices.

      He told insurers to redouble efforts in ensuring that the number of insured vehicles surpass what it is presently.

      Patoma Admin by — February 22, 2021 in Insurance 0
      India Life Insurance record 12.75% rise in turn over March 2020

      By admin

      The Indian life insurance market recorded a 12.75 percent turnover increase during the fiscal year 2019-2020, ending 31 March 2020.

      The premiums went from 5 080 billion INR (73.01 billion USD) at 31 March 2019 to 5 730 billion INR (76.15 billion USD) one year later.

      Life Insurance Corporation of India (LIC), the only state-owned company in the market, accounted for 66.22 percent of life premium income in the year 2019-2020. The remaining 33.78 percent were achieved by the 23 other private life insurers. This percentage is roughly equal to that of the previous year set at 33.58 percent

      During the period under review, the net profit reported by all Indian life insurance companies amounted to 77.28 billion INR (1.02 billion USD), a decrease of 8.4 percent compared to the 84.36 billion INR (1.21 billion USD) recorded one year earlier.

      The private sector posted results degrading by 12.7 percent set at 50.16 billion INR (666.69 million USD). The net profit generated by LIC during the year 2019-2020 amounted to 27.13 billion INR (360.59 million USD

      Patoma Admin by — February 22, 2021 in Insurance 0