All Posts in "Day: June 24, 2021"

Niger Insurance settles N1.15 bn claims between 2020/2021

By Favour Nnabugwu

 

Despite the recent situation of Niger Insurance, the company is coming out of the woods as it has paid N1.15billion claim between 2020 and now

Aside all hands on deck to revive Niger Insurance, the company is equally working on liquidating some of it’s real estate assets to further alleviate the plight of its policyholers.

The Managing Director of Niger Insurance Plc, Mr. Edwin Igbiti, promised that his firm will not relent in meeting customers’ expectations.

Igbiti is optimistic that the company will rise again while he put the claim paid to policyholders between 2020 and now to reach N1.15billion.

According to him, “in addition to meeting commitment to our policyholders, we have created customer engagement forum to address customers’ complaints, which has been very effective in addressing concerns and enquires, especially, in the present status of the company and management initiatives.

“Our traction and achieved milestones were also communicated at various conferences and media parley held by the company.”

Niger Insurance, he promised, remains responsible and committed corporate organisation, while assuring the insuring public and all stakeholders that it will ensure all obligations especially, in the area of claims payments are met to the extent of its established liabilities and provision of insurance practices.

Patoma Admin by — June 24, 2021 in Insurance 0
R- The Commissioner for Insurance, Mr Sunday Olorundare Thomas at the 24th Nigerian Insurers Association investiture of the chairman, Mr. Ganiyu Musa in Lagos

Caption:

The 24th investiture of the Chairman of Nigerian Insurers Association, NIA, in Lagos.

1.   R – The Commissioner for Insurance, Mr Sunday Olorundare Thomas greeting an operator at the 24th NIA investiture in Lagos.

 

2.  R – Group Managing Director, Mr. Lawrence Nazare of Continental Reinsurance Plc; Regional Director, Anglophone West Africa, Mr. Ogadi Onwuaaduegbo; Chief Financial Officer, Mrs Jane Mberia at the investiture of the Nigerian Insurers Association, Mr Ganiyu Musa at the event.

    Patoma Admin by — June 24, 2021 in Insurance 0
    Swiss Re cuts stake in Phoenix Group to 6.6%

    By admin

     

    Swiss Re acquired a stake in the company last year through the sale of its ReAssure Group plc subsidiary to Phoenix but has not cut stske to 6.percent

    The sale was completed through an accelerated bookbuilding process and was done in the context of a regular review and rebalancing of Swiss Re’s investment portfolio and is consistent with the group’s overall investment strategy.

    Swiss Re states that Phoenix agreed to Swiss Re completing this transaction prior to expiry on July 23rd 2021 of the lock-up arrangement agreed between the pair.

    The sale of an approximately 6.6 percent holding by Swiss Re is expected to close on June 25th, 2021.

    According to the reinsurer, this transaction will result in a low single-digit increase in the Group’s Swiss Solvency Test ratio, while the impact of the deal on Swiss Re’s US GAAP earnings is expected to be insignificant.

    Once the deal closes, Swiss Re’s remaining stake in Phoenix will be roughly 6.6 percent of the firm’s total issued share capital. Regarding these shares, Swiss Re has agreed to a lock-up arrangement of 90 days following closing, subject to waiver, as is customary for such a trade.

    Additionally, now that Swiss Re’s holding in Phoenix has dipped below 10 percent, the relationship agreement ceases to be effective and Swiss Re is no longer entitled to appoint a non-executive director to the Phoenix Board.

    Consequently, Swiss Re has informed that its nominated representative, Christopher Minter, will step down from the Phoenix Board with effect from settlement of the shares sold by Swiss Re.

    Nicholas Lyons, Phoenix Chairman, commented: “On behalf of the Board, I would like to thank both Christopher for the significant contribution he has made since joining the Board in July 2020 and Swiss Re for its support during its time as a significant strategic shareholder.”

    As part of last year’s deal, Swiss Re transferred shares representing roughly 14.5 percent of the enlarged share capital of Phoenix to MS&AD Insurance Group Holdings, ReAssure’s minority shareholder.

    Phoenix notes that MS&AD, whose lock-up period also expires in July 2021, continues to retain a 14.5 percent stake in Phoenix and is committed to its strategic relationship.

    Commenting on the sale of some of Swiss Re’s stake in Phoenix, Moody’s Investors Service analyst, Dominic Simpson, said: “Swiss Re has halved its shareholding in Phoenix Group to 6.6 percent, equivalent to £437 million, which we view as credit positive in that it will reduce Swiss Re’s asset concentration and have a small positive impact on it solvency.”

    Patoma Admin by — June 24, 2021 in Insurance 0
    Untold story of Boeing 737 MAX

    By Favour Nnabugwu

    The two clashes of Boeing 736 MAX between five months, between October 2018 and March 2019, Boeing 737 MAX, was what revealed the truth about manufacturer’s defect on the model gave it away

    Following both crashes, all 737 MAX in operation, that is, 371 aircrafts, were grounded while thousands of flights were cancelled by airliners. Moreover, Boeing was compelled to suspend delivery of new aircrafts and to slow-down production of the 737 MAX. It was later obliged to set aside $5.6 billion to compensate losses sustained by its customers.

    A further difficulty is the discovery made in October 2019 regarding cracks to the pickle fork of next Generation Boeing 737  Consequently, fifty defective devices were grounded.

    By late September 2019, Boeing losses would amount to $8bn a figure that does not include the compensation fees disbursed to the victims’ relatives, the fines levied, settlement of disputes and delayed deliveries. It is noteworthy that the aeronautic giant proposed the disbursement of $144, 500 to each family of the 346 victims of both crashes.

    Another setback to be added is when experts placed Boeing below standards in terms of protection Bagainst cyber risks.  Security failures were noted at the level of its construction sites, its networks and software. These failures are real menace for the clients as well as for civilian and military aircrafts.

    Pickle fork: part that connects the wings to the fuselage.

    Interruption of production of Boeing 737 MAX

    Boeingg crisis worsened following the announcement made on January 1, 2020, to shutdown the production of 737 MAX for an undetermined period. The cost pertaining to the maintenance and storage of the grounded aircrafts since March 13, 2019 has considerably impacted the accounts of the manufacturer.

    In view of the lack of parking and maintenance area, priority goes to the delivery of the stored aircrafts and not to their manufacture.

    Historic losses for Boeing

    The crisis of the Boeing 737 MAX has heavily affected the 2019 balance crisis accounts of the American manufacturer. For the first time since 1997, Boeing sustained a net loss. The latter amounted to $636m in 2019 versus $10.1 bn in profits in 2018. With an order backlog of 5400 aircrafts, Boeing’s Commercial Aircraft Division has reported an operational loss worth $6.6 bn versus $8bn profits one year earlier.

    Following the injection of $9.2 bn earmarked to address the compensation of the airliners affected by the grounding of aircrafts and delivery delays, Boeing’s bill is now amounting to $18.4 bn

    Patoma Admin by — June 24, 2021 in Aviation 0