All Posts in "Day: August 14, 2021"

Nigeria’s unclaimed dividends increase to N170bn

The

Securities and Exchange Commission (SEC) on Friday said the total unclaimed dividends in the Nigerian capital market stood at N170 billion as of December 2020.

The Director-General, SEC, Mr Lamido Yuguda, said this at the second post-Capital Market Committee (CMC) virtual news conference.

Yuguda said the figure had increased compared with N158.44 billion total unclaimed dividends as of December 2019
He attributed the rising figure to identity management and multiple subscriptions of investors.

“We have problems with identity management in the Nigerian capital market and this is really one of the things the commission is trying to resolve.

“We have set up a high powered committee to look at the issue, people bought shares under false names and multiple subscriptions.
There is a problem with the process but there is a problem with us too as people because if you are buying securities using your own wealth; why will you use another persons name, why will you use a name that will not be traceable to you?

“This became an issue after the introduction of BVN because BVN is tied to only one name,” Yuguda said.

He noted that the commission constituted a Committee on Identity Management for the Nigerian Capital Market in June in order to address the unclaimed dividend issue.

The committee is chaired by Mr Aigboje Aig-Imoukhuede and is expected to harmonise various databases of investors, and facilitate data accuracy in the market.

“We are optimistic that the outcome of this committee’s assignment would address the challenges of identity management and help resolve some of the issues we face in the areas of unclaimed dividend, direct cash settlement and multiple subscription,” he added.

On the Electronic Dividend Mandate Management System (e-DMMS) portal, Yuguda said the total number of mandated and approved accounts from its inception in 2016 to July 2021 stood at 1,144,970.
He explained that the COVID-19 pandemic affected the registration exercise.

Yuguda said members of the CMC had adopted some measures to increase the number of mandated investors on the e-DMMS and reduce the quantum of unclaimed dividends in the market.

He listed the measures as; automation for mandating to e-DMMS, increased monitoring of adherence to procedures and increased awareness campaigns on the initiative.
Yuguda added that a training session would be organised by the Central Securities Clearing System (CSCS); to be supported by the e-DMMS technical committee, Institute of Capital Market Registrars (ICMR) and Association of Securities Dealing Houses of Nigeria.

He said a study to determine the suitability of the CSCS to process dividends of investors in unlisted companies would also be conducted

Patoma Admin by — August 14, 2021 in Banking & Finance 0
Mutual Benefit Assurance total assets hit N82.87bn in 2020

By Favour Nnabugwu

 

Mutual Benefits Assurance Plc has sai the company’s total assets rise by 22 percent to N82.87 billion in 2020 from N67.78 billion in 2019, following the capital injection of N4.80 billion

The company also recorded 70 per cent rise in total equity from N14.53 billion in 2019 to N24.69 billion in 2020 while it generated N19.98 billion gross premium written in 2020, which amounted to a growth of the seven per cent.

The Chairman of the Company, Dr. Akin Ogunbiyi, disclosed this at the company’s 25th Annual General Meeting (AGM) held virtualy, adding that in spite the headwinds posed by COVID-19 pandemic, the group gross premium written (GPW) moved from N18.70 billion in 2019 to N19.98 billion in 2020.

He said the performance was largely driven by a 12 per cent growth in the firm’s non-life insurance business, which moved from N10.17 billion in 2019 to N11.35 billion in 2020.

Dr. Ogunbiyi maintained that the group also recorded a five per cent increase in net premium income from N15.29 billion in 2019 to N16.08billion in 2020.

He posited that an adverse claims experience resulted in a 32 per cent decline in underwriting profit, from N5.40 billion in 2019 to N3.68 billion in 2020.

The MBA Plc Chairman, noted that the drop in underwriting profit was offset by impressive investing activities and improved cost controls, leading to a 34 per cent rise in Profit before Tax..

Ogunbiyi said 2021 presents another opportunity to consolidate on the tremendous feats made towards becoming the one-stop shop for provision of financial services solutions in all the company’s countries of operations.

He maintained that even as the business environment remains challenging due to economic uncertainty, the firm’s diversified business model, strong capital position and highly qualified and committed
employees, provide the solid base for profitable and resilient growth.

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Patoma Admin by — August 14, 2021 in Insurance 0