All Posts in "Month: March 2021"

IGI announces $31.6m profit in 2020

By admin

International General Insurance Holdings Ltd. (IGI) has reported profit of $10.9 million and $31.6 million for the fourth-quarter and full-year 2020, respectively, as well as an improved underwriting performance for both periods.

IGI Q4 2020, profit more than doubled from the $4.3 million posted in 2019, as full-year profit spiked by almost 34 percent from the $23.6 million recorded in the prior year.

At the same time, core operating income amounted to $4.2 million in Q4 2020 against a loss of $0.1 million in Q4 2019. And, for the full-year, the performance here was also impressive as income reached $34.1 million, compared with $21.2 million in 2019.

IGI attributes the growth in core operating income to a higher level of underwriting income in 2020.

For the quarter, IGI has posted a net underwriting result of $14.7 million, which represents growth of more than 41% from the prior year period. For the full-year, the underwriting result increased by almost 49% to $77.4 million.

Gross written premiums (GWP) spiked by 45.3 percent for the quarter to $129.5 million, and increased by nearly 34 percent for the full-year to $467.3 million. According to IGI, the increases were driven by new business generated across virtually all lines, as well as improved renewal pricing.

Within the underwriting result, IGI has reported a claims and claims expense ratio of 59.8 percent for the quarter, an improvement of 2.7 points over the prior year Q4. This includes current accident year net catastrophe losses of $6.3 million, compared with $8.3 million in 2019.

Prior year reserve development totalled an unfavourable $5.4 million for the quarter, driven by deterioration in prior year loss reserves in both the Long-tail and Short-tail segments, says IGI.

For the year, IGI’s claims and claims expense ratio improved by 1.3 points to 53.5 percent when compared with 2019, and includes current accident year net catastrophe losses of $13.5 million, against $16.2 million for 2019.

Catastrophe losses for the year were driven primarily by the storms that damaged cranes at the Jawaharlal Nehru port in Mumbai, India, and property damage and business interruption losses resulting from Hurricane Laura, both of which are included in the company’s Short-tail segment.

Additionally, IGI has announced favourable development on loss reserves from prior accident years for 2020 of $6.1 million, compared with favourable development of $6.3 million in 2019.

All in all, IGI has recorded a combined ratio of 96.8 percent and 89.3 percent for the fourth-quarter and full-year 2020, respectively. This compares with a combined ratio of 101 percent in Q4 2019 and 94.1 percent for the full-year 2019.

The firm has also provided an update on its inwards reinsurance portfolio during the periods, which represented 4 percent of its gross written premiums for the full-year.

During Q4 2020, net written premiums in the reinsurance division totalled $2.8 million, compared with $2.9 million in the prior year quarter. The net underwriting result was a profit of $2.6 million, which is a marked improvement on the $1.9 million loss posted in Q4 2019.

For the full-year 2020, net written premiums in the reinsurance unit totalled $19.3 million against $18 million in 2019. The net underwriting result also improved in reinsurance for IGI during the full-year, reaching $9.5 million against $0.2 million in 2019, driven by a lower level of claims and claims adjustment expenses.

“2020 has been a successful year for IGI on many levels. Our strong financial performance, achieved during a year of significant distraction and disruption as well as during our first year as a public company trading in the U.S., clearly demonstrates the agility, discipline and focus of our teams and our ability to execute and deliver on our strategy,” said Wasef Jabsheh, IGI’s Chairman and Chief Executive Officer (CEO).

“We broadened our footprint by entering new territories and lines of business and increased our market share, with gross premiums up more than 33 percent in 2020 compared to 2019, while maintaining underwriting profitability at a combined ratio below 90 percent. We expect to continue on this path in 2021, although likely at a more measured pace, and with the same careful approach to risk selection and portfolio balance.

“With the first quarter of 2021 almost completed, the indications on price momentum remain very positive, and we are continuing to see exciting opportunities to build and diversify our business. We will continue to be cautious in managing our net exposures to minimize our overall risk profile so that we maintain our long-term track record of generating strong value for our shareholders,” he added.

Patoma Admin by — March 22, 2021 in Insurance 0
Linkage Assurance step-up in it’s financials

By Favour Nnabugwu

Linkage Assurance Plc has stepped up the company position in the insurance industry from it’s financial from 2019 to 2020.

The company strive to be among the leading company got its fair share from the recent fortune in the sub-sector.

For the fourth quarter ended December 31, 2019, the underwriting firm’s unaudited fourth quarter report submitted to the Nigerian Stock Exchange (NSE) showed a Gross Written Premium (GWP) of N6.52 billion as against N5.59 billion during the same period in 2018, indicating a 21 per cent increase.

From the business generated in 2019 review period, the company also recorded a profit before tax growth of 902 per cent, moving from N134.7 million in 2018 to N1.35 billion during the review period. Profit after tax also grew to N930.24 million, a 421 per cent increase from a loss position of N290.12 million during the same period in 2018.

The performance, according to the company, came from improved underwriting as well as from investment returns, which saw the company coming out stronger during the review period.

Underwriting profit rose by 149 per cent to close at N375.622 million during the review period, as against loss position of N772.48 million the previous year, while investment also grew by 10 per cent, moving from N2.46 billion in 2018 to N2.71 billion in 2019.

The company’s total assets also appreciated by seven per cent to close at N24.72 billion, as against N23.15 billion in 2018. Linkage Assurance began the year 2020 on the downside with a loss after tax of N338.49 million as against a profit of N439.26 million posted in 2019.

Loss before tax stood at N340.193 million from a profit of N627.521 million 2019. However gross premium written grew by 28 per cent from N2.215 billion in 2019 to N2.846 billion in 2020. For Q2’20, the insurance firm recorded a marginal decline of four per cent from N572.77 million in 2019 to N550.44 million in 2020.

Profit before tax grew by 12 per cent to N915.098 million from N818.240 million in 2019. Gross premium written stood at N5.258 billion in 2020 from N4.130 billion in 2019 representing a growth of 27 per cent.

The insurance firm’s gross premium for Q3’20 grew by 28.6 per cent to N6.9 billion from N5.4 billion in the previous quarter of 2019. Profit before tax grew by 76 per cent to N1.5 billion in 2020 from N867 million in 2019.

Profit after tax grew by 90 per cent to N1.1 billion from N592 million in 2019. Net assets grew by five per cent from N23 billion to N24 billion in 2019. Linkage Assurance Plc has reported a 34 per cent increase in profit after tax for the Q4 ended December 31, 2020.

The insurance firm, in a filing with NSE, posted a profit after tax of N1.942 billion in 2020 as against N1.452 million in 2019, representing a growth of 34 per cent. Profit before tax stood at N2.547 billion during the period under review from N1.339 billion in 2019, representing a growth of 90 per cent. Gross premium was N8.332 billion in contrast to N6.519 billion posted in 2019.

The company attributed its continuous growth and market expansion to good relationships with the insurance brokers. The company said its focus going into 2021 and beyond will be to strengthen the relationship by continuously providing efficient services and meeting claims obligations promptly.

Managing Director/Chief Executive Officer of the company, Mr. Daniel Braie, stated this at the general meeting of the Nigerian Council of Registered Insurance Brokers (NCRIB), Lagos Area Council (LAC), hosted by the company in Lagos.

Braie said: “Linkage Assurance Plc recognises the pivotal role of the broker’s community in the growth of insurance business.

“That is why we decided that apart from hosting the national body, we would go a step further to host the various Area Councils across the country. “So far, we have done this in Abuja, Kaduna, Port Harcourt and now Lagos. If not for the COVID-19 pandemic that broke out last year, we would have covered more states.”

According to Braie, Linkage Assurance is still very committed to achieving this objective because of the importance it places on brokers as her strategic partners, as it is committed to delivering on the promises of her vision and mission statements.

He also disclosed that Linkage, from its unaudited result for the year 2020, grew its Gross Premium Written by 28 percent to N8.3 billion from N6.5 billion in 2019.

“The company also achieved profit before tax of N2.5 billion and paid out claims amounting to N2.4 billion during the same period.

“This would not have been possible without your support for which we are grateful. We had the largest aviation treaty in the market last year, and this year we are about the highest in fire treaty. So, we are ready to serve you well,” Braie assured.

In the statement to NSE, Braie said the company would continue to refine its strategy in line with the political, economic, sociological and technological changes within our operating environment.

Braie also said that “the company would continue to develop innovative products, alternative channels of distributions and strategic initiatives that will enable us achieve our corporate goals and objectives. “With a medium-to-long term perspective, the company believes that it will benefit from growth from these initiatives.

“We will consolidate on the ongoing initiatives to improve our operational efficiency so as to reduce the cost of doing business, improve business processes, eliminate wastages and achieve higher margins in our core business,” the company said.

Patoma Admin by — March 22, 2021 in Insurance 0
Naicom to implement corporate governance guidelines in 70days time

In less than 70 days from now, the National Insurance Commission (NAICOM) will implement insurance industry’s corporate governance guidelines.

The Commission on its website recalled that the guidelines which will be implemented on June 1, 2021,  was issued on March 17, 2021.

Naicom implored all insurance and reinsurance firms to comply with the guidelines and the Nigerian Code of Corporate Governance 2018.

Naicom stated, “Non-compliance with the Nigerian Code of Corporate Governance (NCCG) 2018 and this guidelines shall be a violation of Section 49(1)b of the National Insurance Commission Act 1997 and attracts penalty under Section 49(5) of the Act”

NAICOM maintained that its principal object is to ensure effective administration, supervision, regulation and control of the insurance business in Nigeria

It added that Section 11 C and 51 C of the Financial Reporting Council of Nigeria (FRCN) Act, 2011 confers on the FRCN the power to ensure good Corporate Governance Practices in ublic and private sectors of the Nigerian economy.

Naicom noted that the FRCN issued the Nigerian Code of Corporate Governance (NCCG) 2018 to institutionalize corporate governance best practices in all Companies in Nigeria and repealed all other sectorial codes.

The Commission in exercise of its powers under the National Insurance Commission Act 1997 and in collaboration with FRCN hereby issues its Corporate Governance Guidelines (the Guidelines) to assist the implementation of the NCCG 2018, it said.

The regulatory body informed that the Guidelines shall be read and interpreted in conjunction with the provision of NCCG 2018 and replaces the NAICOM Code of Good Corporate Governance for the Insurance Industry 2009.

Patoma Admin by — March 20, 2021 in Insurance 0
SUNU Group to invest in five West African States

SUNU Group obtains the approval of the Inter-African Conference of Insurance Markets (CIMA) for the acquisition of the Allianz’s majority stakes in five West African subsidiaries.

The five countries SUNU takes controls of one subsidiary in Benin, two in Burkina Faso, one in Mali and one in Togo.

This major acquisition enables SUNU to strengthen its presence in the aforementioned countries. In Burkina Faso, the acquisition of Allianz’s life and non-life portfolios gives SUNU a predominant position on the market.

Prior to this transaction, SUNU previously acquired the majority stakes of the Equity Assurance group of companies in three countries.

The shares amounted to 74.59 percent for Ghana, 76.18 percent for Liberia and 65.27% for Nigeria. In Togo, SUNU Group already detains 65.70 percent of Banque Populaire pour l’Epargne et le Crédit (BPEC) which it bought 2018.

With the takeover of Allianz subsidiaries, SUNU thus intends to implement its African expansion policy.

As for Allianz, the company is divesting the subsidiaries, considered the least profitable, in order to refocus on high value-added markets

Patoma Admin by — March 20, 2021 in Insurance 0

By admin

Swiss Re will begin tightening its treaty (re)insurance underwriting policy for thermal coal risks from 2023 and exit all exposures in OECD countries by 2030 and the rest of the world by 2040.

New thermal coal underwriting thresholds will be applied across Swiss Re’s property, engineering, casually, credit and surety, and marine cargo lines of business from 2023. They will be gradually reduced until the risks are completely phased out.

Last year, Swiss Re said it would stop underwriting the world’s 10% most carbon-intensive oil and gas companies by 2023.

Updating its investment policy to achieve net-zero emissions by 2050, Swiss Re has now said it will reduce the carbon intensity of its corporate bond and equity portfolio by 35% by 2025. It has already reduced the portfolio by 30 percent between 2015 and 2018. It plans to exit all coal-based assets in the portfolio by 2030.

At the same time, the reinsurer has set a target to increase investments in renewable and social infrastructure by $750m and expand green, social and sustainability bond exposure to $4bn by the end of 2024, from $2.6bn at the end of last year.

Christian Mumenthaler, Swiss Re group CEO, said: “Climate change remains the biggest challenge we face as a society. The stakes are high and require immediate attention. Signing up to net-zero emissions by 2050 and setting concrete climate targets are important first steps. What needs to follow now is action. We are moving ahead in all areas of our business to accelerate the transition towards net zero.”

As an additional measure, Swiss Re said it will work with companies in its equity portfolio to reduce their carbon emissions and develop their own corporate climate strategies.

Swiss Re’s group chief investment officer Guido Fürer said: “We believe that by engaging with the real economy and supporting the companies we invest in to develop a climate strategy and to manage related risks, we will improve our risk-adjusted returns, while also propelling the transition to a net-zero emissions economy.”

Swiss Re said its targets for underwriting and investment have been set against a protocol adopted by the Net-Zero Asset Owner Alliance, which it joined as a founding member. It will report on the target progress each year.

The group has already committed to net-zero emissions from its own operations by 2030. It has introduced a carbon levy on direct and indirect emissions from its operations starting at $100 per tonne of CO2 from 2021, and doubling to $200 per tonne by 2030.

Environmental campaign group Insure Our Future said Swiss Re’s new underwriting targets are a “breakthrough” in reinsurance, as they extends existing initiatives to reduce coal underwriting in direct and facultative reinsurance to treaty business. The campaign called on other reinsurers to do the same.

“Treaty business is a very large portion of the reinsurance trade and it has been a major loophole in coal underwriting that needs to be addressed. Swiss Re has set a benchmark that the rest of the industry needs to follow, now,” said Lindsay Keenan, European coordinator for Insure Our Future.

“Now that Swiss Re has responded with an ambitious and clear commitment, we call on Munich Re, Hannover Re, SCOR, Berkshire Hathaway, Lloyd’s of London, Mapfre and Vienna Insurance Group to quickly follow suit,” he added.

Patoma Admin by — March 18, 2021 in Insurance 0

By Favour Nnabugwu

AM Best  has become a signatory of the United Nations Environment Programme’s (UNEP) FI Principles for Sustainable Insurance (PSI) being the first Credit Rating Agencies, CRA to be.

AM Best believes the insurance industry plays an important role in supporting sustainable economic and social development.

In addition, management of environmental, social and governance (ESG) efforts will strengthen the insurance industry’s contribution to building a resilient, inclusive and sustainable society. AM Best’s PSI membership is a significant step in this direction.

Endorsed by the U.N. Secretary-General, the Principles have led to the largest collaborative initiative between the U.N. and the insurance industry — the PSI Initiative. Over 140 organizations worldwide have adopted the four Principles for Sustainable Insurance, including insurers representing more than 25percent of world insurance premium volume and USD 14 trillion in assets under management.

The Principles are part of the insurance industry criteria of the Dow Jones Sustainability Indices and FTSE4Good.

“AM Best and its major affiliates are pleased to become a signatory to the U.N.’s Principles for Sustainable Insurance. The Principles ‘serve as a global framework for the insurance industry to address environmental, social and governance risk and opportunities,’” said Arthur Snyder III, Chairman, President & CEO of AM Best Company.

“This fits both our focus on insurance and our continued perspective that ESG elements play an important role in the financial strength of an insurance company.

We’ve long captured environmental and governance issues in our ratings opinions through catastrophe stress tests, A&E tests and ERM. ESG is a repackaging of these. Through the PSI, we are making a further commitment of disclosure and transparency to forward an ESG agenda,” said Matthew C. Mosher, President & CEO of AM Best Rating Services.

“We are delighted that the world’s first credit rating agency is also the first credit rating agency to sign the UN’s Principles for Sustainable Insurance (PSI),” said Butch Bacani, who leads the PSI at the UN Environment Programme.

“As the largest credit rating agency specializing in the insurance industry, this is a clear and strong signal from AM Best that sustainability matters in the insurance business, that sustainability counts. In the final analysis, the bottom line is sustainability.”

Patoma Admin by — March 18, 2021 in Insurance 0

The new Director General of the Nigerian Meteorological Agency, NiMet., Prof Mansur Bako Matazu has assumed office yesterday

Professor Matazu takes over from Professor Sani Abubakar Mashi following an approval by President Muhammadu Buhari for the reorganization of the Aviation Agencies in line with the implementation of his administration’s Aviation Development Roadmap.

Speaking at the handover ceremony at NiMet headquarters, Abuja, Prof. Matazu acknowledged the great feat achieved by his predecessor, whom he served as Technical Assistant.

He added that Professor Mashi has achieved a lot for the Agency and taken it to a great height to become the best Meteorological Agency in the whole of Africa.  Matazu pledged to build on this success.

He expressed gratitude for the opportunity to serve in this capacity and promised to run an all-inclusive administration. He noted that the former DG/CEO has always been his mentor.

In his valedictory speech earlier, the outgoing Director General/CEO, Professor Sani Abubakar Mashi gave a report of his stewardship and expressed confidence in the capability of the new Director General to build on the achievement he recorded and propel NiMet to greater heights.

He appreciated every staff for the support given and wished Professor Matazu a successful and eventful tenure. He appealed to all staff to extend same cooperation he enjoyed to the new Director General.

Professor Matazu holds a PhD in Applied Meteorology from the Federal University of Technology Minna and a post-doctorate degree at Erasmus University, Netherlands. He lectured at Federal University of Technology Minna as well as Federal University Dutsinma, Katsina state before joining NiMet in 2016.

He has published Books, Chapters and Peer review articles in both national and international Journals.

Professor Matazu is a member of Nigerian Environmental Society, African Forestry Forum, Nigerian Meteorological Society, the Climate Change Network, Nigeria and the Renewable Energy and Energy Efficiency, Nigeria (REEN).

Until his appointment, Professor Mansur Bako Matazu was the General Manager, Research as well as the Technical Assistant to the outgoing Director General.

Patoma Admin by — March 18, 2021 in Aviation 0

By admin

Africa’s insurance industry has only about 3 percent subscription penetration across the continent compared to the telecoms sector, which has over 72 percent subscription penetration in Africa.

This is because most insurance companies have not fully evolved from the traditional means of doing business to integrated modernization and innovation in their products.

During one of the panel discussions at the 2021 Africa Financial Industry Summit (AFIS) tagged “Insurance: how to (finally) win over African consumers,” the speakers emphasized the need for insurers to understand that customers have evolved and are more open to digitalizes products.

“For insurance to work in Africa, we need to have an understanding of our society and how it is working,” said Corneille Karekezi, Group MD/CEO, African Reinsurance Corporation (AFRICA RE) Group.

Emphasizing the need to educate people on financial literacy and the integration of technology, Souleymane Gning, Directeur Général, Assuraf spoke about the need to educate people and show them the benefits of insurance. “Insurers need to engage the use of technology to reach the masses,” Gning said.

Despite a 7.5 percent year-on-year increase since 2015 in countries belonging to the Federation of African National Insurance Companies (FANAF), these successes have been short-lived. This is partly because while many still lack an adequate understanding of what an insurance plan is, the sector is also struggling to woo customers. As tech-driven startups are winning the heart of the African market with innovative and affordable products, most insurance companies still approach the fast-evolving market with methods and less innovative plans. Hence, the need to develop civilized ways to approach the customer with innovative products.

“Customers have evolved very quickly in Africa. They are engaging with Telecoms and not us. We need to engage with them in a more civilised manner. We need to open up and ensure that people can engage with us.”

-Rashidat Adebisi, Chief Client Officer, AXA Mansard Insurance Plc.

Another set of challenges discussed during the session include poverty and financial literacy. A large number of the world’s most impoverished population are found in Africa. This means that many Africans are unlikely to be able to afford an insurance package. According to a World Bank report, high population growth between 1990 and 2015 caused the number of poor people in Africa to increase from 278 million in 1990 to 413 million in 2015. The bank also forecasted poverty to rise in the continent from 55 percent in 2015 to 90 percent in 2030.

“More than half of the population in our region are below the poverty line and cannot afford insurance. We should integrate insurance into the products that the population is consuming more,” said Souleymane Gning.

Some important measures that could facilitate the growth of Africa’s insurance include a transformed digital economy, new innovative products, and industry consolidation. The panelists also stressed that the adoption of these measures could cause an influx of customers to the sector. Players from digital and tech-driven sectors have succeeded in captivating the minds of a vast majority of the African population due to the rise in the use of mobile phones on the continent.

“Our competitions are not other insurance companies but the Ubers and tech startups. The speed at which insurers would provide smart and innovative products to consumers would determine growth in the industry,” said Junior Ngulube, Former Vice-Chairman (2020), Sanlam Pan Africa.

Patoma Admin by — March 17, 2021 in Insurance 0

By admin

Emirates airline on Wednesday said it was in talks with Nigerian government a week after the carrier announced that flights from the African country would remain suspended until March 20.

“Emirates remains in close dialogue with the relevant regulators and authorities in Nigeria and we are fully committed to making progress on a resolution to ensure the continuation and expansion of our operations,” an airline spokesperson told Gulf News.

“Our highest priority continues to be the health and safety of our customers, employees, and the communities we serve both in Nigeria and across our network,” the spokesperson added.

Last week, Emirates said that flights from South Africa and Nigeria will remain suspended until March 20, in line with government directives that restrict the entry of travellers from these two countries in view of the COVID-19 pandemic. The entry restrictions for passengers originating from or transiting through both these countries were earlier in force till March 10.

“Customers from both Abuja and Lagos will not be accepted for travel prior to or including this date. Passengers who have been to or connected through Nigeria in the last 14 days are not allowed entry into the UAE, whether terminating their journey in or connecting through Dubai,” the airline said in a statement earlier.

Patoma Admin by — March 17, 2021 in Aviation 0

The mother of the National Pension Commission (PenCom) Spokesman, Peter Aghahowa, Mrs. Alice Aghahowa had passed on at aged 88

Late Mrs. Alice Aghahowa passed on to be with the Lord on Saturday, March 6, 2021. She was aged 88 years old and survived by four children, 12 grand children and great grand children.

The Chairman, National Association of Insurance and Pension Correspondents (NAIPCO), Chuks Udo Okonta, on behalf of members of the association, sent a heart felt condolence to the Aghahowa family and prayed God to grant the deceased an eternal rest.

Patoma Admin by — March 17, 2021 in Others 0