All Posts in "Day: May 4, 2021"

ILO, CIFM to train participants on online Insurance

By Favour Nnabugwu

International Labour Organization, ILO, and the College of Insurance and Finacial Management are set to train participants on online Insurance via Zoom.

The Impact Insurance Facility of the ILO and the CIFM will organize the training Product design for inclusive insurance on May 26 and 27, 2021.

During this, the institutions said that participants will learn about: the characteristics of the inclusive insurance market and factors that influence demand.

The business case for providing inclusive insurance responsibly; Designing inclusive insurance products; Standards and guidelines for building a value chain that can deliver inclusive insurance responsibly;
The role of distribution channels in inclusive insurance products; and industry standards and guidelines that make inclusive insurance offering more viable.

According to ILO, despite growing knowledge on how to provide insurance solutions to the bottom-of-the-pyramid, the majority of insurers and distributors in emerging markets struggle to offer insurance products that are viable for them and valuable for consumers.

Capacity gaps among managers are inhibiting the progress. At the local and regional levels, often training programmes are unavailable and training providers have limited technical capabilities to address training needs.

At the global level, the growing body of knowledge on inclusive insurance is yet to be organized into a formal programme that follows rigorous standards.

We work at the local, regional and global levels to address these capacity building gaps. At the local and regional levels, we search for promising training institutes in markets where we operate and partner with them to help them develop more skilled trainers and provide them with high quality ILO-developed training modules that can form part of their core training portfolio and contribute to a sustainable business model.

Patoma Admin by — May 4, 2021 in Insurance 0
We are looking @ alternative investment to increase yields – PenOp

By Favour Nnabugwu

 

The Pension Fund Operators Association of Nigeria (PenOp), is looking has said it is investment alternative aside from the government bonds and treasury bills to increase returns on investment as pension funds asset suffered a N51.30 billion decline in February.

The Chief Executive Officer of PenOp, Mr. Oguche Agudah, said this recently at a virtual training organized by PenOp for members of the National Association of Insurance and Pension Correspondents (NAIPCO).

Agudah who noted that the pension fund assets decline of N51.30 billion in February was mainly attributed to the depreciation in the prices of Fixed Income Securities (FISs) in the trading portfolios of the Approved Existing Schemes (AES), RSA Funds II and IV and Closed Pension Fund Administrators (CPFA), explained that the loss in percentage is minimal when subtracted from the N12.29 trillion pension asset.

He said, “If you examine the N51.30 billion depreciation from the N12.29 trillion pension funds in January 2021, you will notice it is not even up to 0.01 per cent, so the percentage loss here is minimal.

“However, we know there are concerns about the decline in the pension value of assets and the honest truth is that pension funds need to invest more in other assets classes outside of the government bonds and treasury bills which are the safest. So, safety is the first option adopted when investing in any asset”

“Currently pension funds cannot invest in foreign bills because there are regulations which need to be approved by the government. However, we are looking out for other various outlets and areas where the funds can be invested; areas like private equity, but the honest truth is that we need to balance between safety and returns. Notwithstanding, the industry is looking at other alternative investment instruments”, Agudah maintained.

For her part, the Head of Media, Communications and Branding Committee, PenOp, Mrs. Amaka Andy-Azike, explained that the decline in the pension funds are unrealized losses according to the terms of the equity market but pension funds operators are sourcing for other means to increase the yields.

“As operators, we focus more on the safety of funds when investing even as we try to also give fair returns on your investments. The decline in pension funds was because of the market volatility; the money market, bonds and treasury bills have been fluctuating due to the nature of what the economy experienced last year and is still going through.

“Fortunately, as we speak, the yields have increased greatly. Before now, for instance, our money market yield was like 0.5 to 2 per cent but now some banks are offering 10 per cent.

“Indeed, the prices of bonds also decline; it was trending for 6 per cent in some areas for long-term and 4 per cent for short to medium term but today, yields on bonds have started trending upwards. So, if you do a revaluation of the previous loss on pension funds, you will discover that it is not up to the N51 billion.

“Also, it is worthy to note that in the equity market most of these losses are not actual losses, they are unrealized losses because when the equity market goes up again, these yields will rebound and you will get much more. So, some of these losses are not realized losses and some have been corrected because there is increase in yield now in all our instruments; and we are currently looking out for other platforms that are safe to invest the funds. So, for us, the safety of your funds come first in all investment we partake”.

Patoma Admin by — May 4, 2021 in Pension 0
CBN reduces processing time for reversal of failed ATM, POS & Web transaction to be immediate from June 8, 2021

By Favour Nnabugwu

The Central Bank of Nigeria (CBN) has reviewed its guidelines for the operation of electronic payment channels in the country and has directed banks and payment service providers to resolve customers’ chargeback complaints on electronic channels within 24:hours from 8th June 2020.

The apex bank stated this in a circular issued on Sunday and endorsed by Musa I. Jimoh, its Director of Payments System Management.

According to the directive, addressed to all banks and payment service providers, the reversal of failed on-us ATM transactions (failed transactions when customers use their cards on their bank’s ATMs) shall be immediate from the current timeline of 3 days.

However, in a situation where an instant reversal fails because of technical issues of system glitches, the timeline for manual reversal shall not be more than 24 hours.

Similarly, the timeline for the reversals of failed not-on-us ATM transactions (failed transactions when customers use their cards on other banks’ ATMs) shall not exceed 48 hours from the current 3 to 5 days.

The central bank added that refunds on disputed/failed POS/Web transactions shall be effected within 48 hours from current 5 days.

“All Switches are to adjust the chargeback cycle in their dispute resolution systems to 24 hours from 72 hours.

“All Acquirer-initiated refunds shall henceforth be initiated by all banks within 48 hours.

“Processors are to provide daily settlement reports latest 8.am on T+1 basis.

“NIBSS shall send daily reports on reversals to processors on or before 10pm each day,” the document read in part.

The CBN also ordered banks in the country to clear their backlogs of all ATM refunds within one week and within two weeks for POS & Web customers’ refunds respectively with effect from 8th June 2020.

Patoma Admin by — May 4, 2021 in Banking & Finance 0
Air Peace Orders The Embraer E195-E2

By Favour Nnabugwu

 

Air Peace will soon take delivery of its third Embraer E195-E2. With a total order of 13, there are still many more of these jets yet to arrive at the airline

The regional jet, configured by Air Peace with 124 seats across two classes, offers a modern and efficient aircraft. With fuel being a major operating cost for any airline, Air Peace had fuel burn-efficiency high on the priority list.

As part of a public statement issued when the airline boosted its order from 10 to 13, Onyema said that he and his team were receiving “impressive data about the aircraft’s economics” after the aircraft entered revenue service. “This was a driver to place this new firm order with Embraer,” Onyema explained.

Before the global crisis, Air Peace had been operating more than 20 local, regional, and international routes. With this in mind, it had strategic plans to expand those routes.

On the regional front with its African operations, Air Peace Chairman and CEO Allen Onyema sees the E195-E2 as the perfect aircraft. The airline chief says the jet furthers its “no-city-left-behind initiative,” which has the goal of enhancing connectivity in Nigeria and the African region.

In addition to connecting Nigeria and Africa, the jets will also be used to connect to the carrier’s international hub at Lagos. In doing so, the E195-E2s will feed Air Peace’s long-haul flights- operated by Boeing 777s.

Air Peace’s CEO also cited the aircraft’s ‘unique configuration’ as another major reason for ordering the E195-E2. In addition to being the very first African carrier to operate the type, the airline is also the global launch customer for Embraer’s innovative premium staggered seating design.

As shown below, this configuration gives every passenger direct aisle access by offsetting each seat from the one next to it. Business class passengers are thus able to enter and leave their seats without disturbing their seat neighbors.

Adding more Embraer jets to the fleet
Air Peace already has Embraer regional jets in its fleet in the form of eight ERJ-145s. While over 20 years separate the development of these jets and the new E195-E2s, there will be a handful of similarities in how the two types operate.

More importantly, however, is the simplicity in having just one planemaker to deal with in terms of service and support for Air Peace’s regional aircraft fleet.

Patoma Admin by — May 4, 2021 in Aviation 0
Linkage Assurance unveils brand identity

By Favour Nnabugwu

 

Linkage Assurance Plc has unveiled its new brand identity to refects it’s present status in the industry.

The change in the company’s logo embodies a new blue, red, and orange. The inspiration behind the transformation is to reflect the new core values of the company, and to restate the qualities of trust, innovation, excellence, sincerity, and reliability that the company is recognized for.

Commenting on the new brand identity, Mr. Daniel Braie, Chief Executive Officer of Linkage Assurance Plc stated that the new logo and recapitalization efforts of the company present our aspiration as “Bigger, Bolder and Better” to offer exceptional insurance protection to individuals and businesses in Nigeria.

He said; “Even though our logo is changing, what is not changing is our purpose and dedication to delivering on our promises to our stakeholders”.

“To us here at Linkage Assurance Plc, this goes beyond a logo change. Our new identity is one of many parts of our transformation process and it helps to strengthen our purpose. It is a reflection of where we are heading, through our commitment to protect our policyholders, reinforce our legacy of trust while also capturing the spirit of the dynamic future we see ahead of us.

Speaking further, Mr. Braie said that the new logo with its crisp, clean feel, captures Linkage’s dynamism and excellence whilst bringing a sense of rejuvenation and growth in the company.

Linkage Assurance Plc is an insurance company which offers insurance protection for automobiles, homes, retail, commercial businesses in oil and gas, marine, aviation, and agriculture in Nigeria.

Patoma Admin by — May 4, 2021 in Insurance 0
AIICO Insurance profit before tax rise by 11.3% in Q1 2021

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By Favour Nnabugwu

 

AIICO Insurance has recorded an increase in Profit before tax by 11.3 percent to ₦1.6 billion in Q1 2021 while in the Q1 2020, it was ₦1.4 billion) on the back of improved overall profitability in the insurance businesses (Life, General and HMO).

Profits in our Wealth Management business declined in Q1 2021 as capital markets turned bearish during the quarter.

The company’s ross written premium grew by 12.2 percent to ₦19.7 billion in Q1 2021 against the ₦17.6 billion announced in the Q12020.

This was due to an increase of 34.0 percent in the General Insurance business against  35.7 percent of gross written premiums to ₦7.0 billion Q1 2020: ₦4.6 billion

Underwriting profit of ₦27.7 billion in Q1 2021 while in the Q1 2020 it was ₦-131.0 million. Changes in sovereign bond yields impacted the value of our liabilities and assets.

 These movements are reflected in the change in life and annuity funds as well as fair value/realized gains or losses on the income statement. In the Life business, we are typically concerned about whether there is a surplus or deficit of assets over liabilities because of these movements.

 However, because of limitations in financial reporting, changes in liabilities affect underwriting profits while changes in assets are reported below underwriting profits. The effect is the significant variation in underwriting profits especially in volatile investment yield environments, such as we have in Nigeria.

 During Q1 2021, annualized yields rose by 430 basis points to 11.7 percent  at the long end of the yield curve, leading to a reduction in the fair values of assets and liabilities; the reduction in liabilities led to positive underwriting profit while the reduction in assets is reflected in the fair value losses for the period.

Total Investment income declined to a loss of ₦24.1 billion in Q1 2021 and in the Q1 2020 the company had ₦4.7 billion as Federal Government of Nigeria bond yields rose, affecting the fair value of our financial assets. Federal Government of Nigeria bonds make up most of our investment portfolio.

Profit after tax declined by 17.6 percent to ₦1.5 billion in Q1 2021 and in Q1 2020: ₦1.9 billion  tax credits of ₦435.7 million in Q1 2020 improved after tax performance compared to Q1 2021.

Total assets declined by 11.1percent to ₦216.2 billion in Q1 2021 (FY 2020: ₦243.1 billion) driven by a reduction in financial assets (-9.3percent; 79.0 percent of total assets) and cash and cash equivalents (-38.2percent; 9.1percent of total assets).

Total liabilities declined by 13.4percent to ₦180.6 billion in Q1 2021 (FY 2020: ₦208.4 billion). This was driven mainly by decline in insurance contract liabilities (-15.9percent) from the rise in yields and reserving for new business and fixed income liabilities (-9.5percent) in our asset management business.

Total equity increased by 2.8percent to ₦35.6 billion in Q1 2021 (FY 2020: ₦34.7 billion)
Commenting on the results.

Mr. Babatunde Fajemirokun, the Managing Director and Chief Executive Officer said, “The world is in a difficult moment and Nigeria has not been spared. Even as the world starts to move on from the pandemic, the economic after-effects will reverberate for a while yet. However, there is some reason for optimism – economic activities have improved, and the country will likely exit the recession.

“Oil prices remain elevated, and the pandemic-induced lockdowns are easing all over the world. We made significant strides in 2020: implementing our business continuity plan and leveraging technology to improve processes and get closer to our customers. Building on this, we recorded premium growth of 12.2% y-o-y to ₦19.7 billion in Q1 2021. Our financial position remains resilient as well – shareholders’ funds increased 3.3% year-to-date to ₦34.8 billion”.

“Nonetheless, we remain optimistic that economic activities will continue to rebound in coming periods, the IMF has revised its economic growth forecasts for Nigeria upward to 2.5% from 1.5%. Insurance, like every other sector, will have its role to play in the economic recovery as enablers of economic growth by assuming risks that encourage long-term direct investment which enhances production and job creation. Our robust financial position ensures that we can meet our obligations when they arise.”

Patoma Admin by — May 4, 2021 in Insurance 0
Ikpeazu awards scholarship to Abia-born electricity transformer innovator

By Favour Nnabugwu

 

Governor Okezie Ikpeazu of Abia State has awarded five -year full scholarship to Solomon Ukoha who constructed an electricity sub-station with crude oil and other locally sourced materials.

This is coming days after the young inventor’s work surfaced on the social media.

The scholarship according to Gov. Ikpeazu is for the investor to further his education in any tertiary institution of his choice.

Ikpeazu who made this pronouncement at the Governor’s lodge in Aba while receiving the Amekpu Ohafia- born 24 year- old inventor expressed joy over the technical ingenuity exhibited by the young innovator, noting that Abia has youths who can compete favourably with their international counterparts in technical education if given the opportunity.

Ikpeazu noted that power supply had been a major problem facing the country and as such has impacted negatively on economic growth and industrialization especially in the shoe, leather and garments sub sectors for which Aba is well known.

The Governor encouraged Solomon to train some other youths and impart same knowledge to them for the greater benefit of society.

Ikpeazu also encouraged him to build a more presentable prototype of the sub station to enable it compete in external exhibitions revealing that the scholarship covers his tuition fee and accommodation immediately he gets admission.

Showcasing his innovation to Ukoha who said he had completed his secondary school education without any hope of going to the university due to financial challenges revealed that he got the inspiration from God.

He appealed to the State Governor to assist him further his education, a step he said would help him in fulfilling his ambition and expressed his readiness to teach other youths as advised by the Governor.

The inventor whose video went viral on the social media last week tested the electrical sub-station before the Governor.

Patoma Admin by — May 4, 2021 in News 0
FG extends NIN-SIM linkage till June 30

By Favour Nnabugwu.

 

The Federal Government has extended the deadline for the registration, verification and linkage of the National Identity Number (NIN) to Subscribers Identification Module (SIM) cards to June 30.

This is contained in a statement co-signed by Director, Public Affairs, Dr. Ikechukwu Adinde, Nigerian Communications Commission (NCC) and Head, Corporate Communications, Mr. Kayode Adegoke National Identity Management Commission(NIMC).

The extension, the federal government said, was as a result of the virtual meeting chaired by the Minister of Communications and Digital Economy, Dr Isa Pantami and attended by Chairman of NCC, Prof Adeolu Akande.

Others are the Executive Vice Chairman of NCC, Prof Umar Garba Dambatta and the Director-General of the National Identity Management Commission (NIMC), Aliyu Azeez.

The minister said the postponement of the deadline was also based on the request by stakeholders for an extension until June 30 in order to make it easier for all citizens and legal residents to register.

“Significant progress has been made in the NIN-SIM verification process.

” For example, almost 54 million people have obtained their NIN and this can translate to up to 190 Million mobile numbers, since empirical evidence suggests that each unique NIN maps to three to four phone lines,” Pantami said.

The government said the much-awaited Android enrolment system is now ready for deployment and this had the potential to significantly accelerate the speed and ease of enrolment.

” Furthermore, the telecom providers and other enrolment agents have also opened several centres across the country to make it easier for eligible citizens and residents to obtain and link their NINs.

” It is noteworthy that Sections 27 and 29 of the National Identity Management Commission Act 2007 provides for the mandatory use of National Identity Number for accessing several government services.
This is similar to the use of Social Security Number and National Insurance Number for accessing services in the United States of America and the United Kingdom respectively,” the federal government said.

Pantami appreciated Nigerians for their patience and compliance with the Federal Government’s directive on the NIN-SIM registration exercise.

He reiterated the government’s commitment to continue taking decisions aimed at easing the pains of the citizens with regard to issues related to NIN and SIM registration.

Federal Government had on Dec. 15, 2020, declared that after Dec. 30, 2020, all SIMs that were not registered with valid NINs on the network of telecommunications companies would be blocked.

The federal government later extended the December 30, 2020 deadline following widespread opposition against the earlier announcement and gave three weeks’ extension for subscribers with NIN from Dec. 30, 2020, to Jan. 19, 2021.

Patoma Admin by — May 4, 2021 in News 0
Arik Airk resumes thrice a week flight to Maiduguri

By Favour Nnabugwu

 

Arik Air is reintroducing flights from Nnamdi Azikiwe Airport, Abuja to Maiduguri, the Borno State capital with effect from Monday, May 10, 2021. Passengers traveling from Lagos can connect seamlessly to this service from Abuja.

The four weekly Abuja-Maiduguri flights will operate on Mondays, Wednesdays, Fridays and Sundays.

The airline is assuring passengers of their safety and well-being at every stage of flight, as the airline’s crew are poised to give customers the Arik signature treatment.

Arik Air’s Chief Executive Officer, Captain Roy Ilegbodu said: “We are delighted to reintroduce our services to Maiduguri, following popular demand by our customers for Arik’s presence in the city.

“Customers on this route should again expect the traditional Arik Air hospitality and exceptional service that have become the hallmark of the airline”.

Patoma Admin by — May 4, 2021 in Aviation 0