All Posts in "Month: August 2021"

Tanzanian Govt calls on insurance industry to back financial sector masterplan

By admin

 

 

The Tanzanian government is urging the insurance industry to work together to support the country’s Financial Sector Development Master Plan 2020-2030.

The master plan sets ambitious goals for the insurance sector, including:
50 percent coverage of the adult population within a decade;

life insurance penetration to be 3 percent and non-life, 2 percent

10 percent of beneficiaries of retirement plans to use annuity products by 2030;

90 percent of the population have health insurance by 2030;

20 percent of the adult population have life savings products;

80 percent of the population are aware of insurance matters by 2025;

10 percent of total insurance premium to contributed by agriculture insurance by 2030;

10 new demand-driven insurance products developed by 2030;

8 affordable insurance distribution channels to be developed by 2030.

Speaking at the official opening of the annual conference of the Tanzania Insurance Brokers Association (TIBA) in Dar es Salaam last week, Permanent Secretary in the Ministry of Finance and Planning Emmanuel Tutuba said the government alone cannot achieve the goal of expanding insurance coverage to all. Support is needed from the private sector.

He said that insurance is key to the country’s financial inclusion agenda and the bulk of growth of the financial sector in the next decade is expected to be generated by the insurance industry.

Mr Tutuba said, “This transformation can only happen if the insurance industry pivots itself on innovation and synergy. The first part is digitalisation. The second part is for the players, re/insurers, insurance brokers/agents, bank assurers and all the players across the insurance value chain to work in synergy so as to achieve the economies of scale.”

Insurance industry’s capacity to be expanded

He also said that the government would seek to enhance the industry’s underwriting capacity with the view to improving the insurance sector’s contribution to the national economy. Special thrust will be on enhancing capital requirements and human skills development as well as establishment of pools for specialised and large risks, for example, oil and gas as well as aviation.

Patoma Admin by — August 3, 2021 in Insurance 0
Aon’s revenue from commercial risk jumps to 20% in Q2′ 2021

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Broking giant Aon has benefited from a 20% jump in revenue within its commercial risk segment, the segment’s revenue rose from $1,126 million in Q2′ 20 to $1,349 million. citing strong new business generation, retention, and management of the renewal book portfolio.

This improvement has also been attributed to the more discretionary portions of Aon’s business, primarily in transaction liability, project-related work, construction, and cyber consulting, which were negatively impacted in the prior year period.

Aon’s efforts in the reinsurance space during Q2 saw the firm secure a 12% year-on-year increase that resulted in revenues of $500 million.

Market impact is reported to have been a modestly positive driver in this area, with the majority of revenue in its treaty portfolio recurring in nature and recorded in connection with the major renewal periods that take place throughout the first half of the year.

Equally, the second half of the year is driven by facultative placements and capital markets that are more transactional in nature.

Net income attributable to shareholders was $379 million, down from $398 million in the prior year quarter.

Total revenue increased 16% to $2.9 billion, including organic revenue growth of 11%, which CEO Greg Case describes as the firm’s strongest in over a decade, translating into 17% growth in earnings per share, and contributing to 13% free cash flow growth.

“These results demonstrate the incredible resilience of our colleagues and the power of Aon United, said Case.

“We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy.

“Our ability to innovate on behalf of clients remains unrivaled and continues to translate into significant progress against key financial metrics and shareholder value creation.

Patoma Admin by — August 3, 2021 in Insurance 0
Swiss Re reports $1bn net income for half year 2021

By admin

 

Global reinsurance giant Swiss Re has reported net income of $1 billion for the first half of 2021.

An improved performance in its property and casualty (P&C) business more than offset a COVID-19 driven loss in its life and health (L&H) reinsurance division.

Swiss Re’s H1 2021 Group-wide profit would have reached $1.7 billion excluding COVID-19, compared with a net loss of roughly $1.1 billion for the prior year period, during which Swiss Re reported pandemic losses of a massive $2.5 billion.

Starting with its P&C reinsurance arm, and Swiss Re has announced net income of $1.2 billion for H1 2021, which is a solid improvement on the loss of $519 million for the same period last year.

The firm attributes the robust performance to disciplined underwriting, ongoing price improvements, and significantly fading COVID-19 related losses and a strong investment result.

Within P&C Re, the return on equity (RoE) totalled 27.2%; as Swiss Re grew net premiums earned by almost 9% to $10.5 billion, driven by both volume and price increases.

Losses from natural catastrophe events reached $521 million for the period and are mostly related to US Winter Storm Uri, while Swiss Re’s P&C arm has reported man-made losses of $100 million for the period.

The impact from the pandemic on P&C reinsurance was minimal in H1 2021, says Swiss Re, adding that it expects P&C losses related to COVID-19 to amount to less than $200 million for the remainder of 2021.

At the recent July reinsurance renewals, P&C Re achieved a nominal price increase of 4%, while the volume of treaties remained stable at $16 billion.

Overall, P&C Re has reported an improved combined ratio of 94.4 percent for H1 2021 compared with 115.8 percent  a year earlier, with the unit on track to meet its target, normalised combined ratio of less than 95% in 2021.

“Overall price quality improved, more than offsetting the impact of decreased interest rates and adjustments to loss assumptions. In the July treaty renewals, premium volumes slightly increased, with growth in attractive natural catastrophe business in the US,” says Swiss Re.

Within L&H Re in H1 2021, Swiss Re has announced a net loss of $119 million in light of continued losses from the pandemic.

While these losses fell in Q2 when compared with Q1, the vast majority of Swiss Re’s COVID-19 loss of $870 million in H1 2021 are attributable to its L&H Re business. In fact, excluding L&H Re COVID-19 losses of $810 million, L&H Re’s underlying business performed well, with net income of $530 million.

Net premiums earned and fee income jumped by more than 12 percent, year-on-year, to $7.5 billion, mostly as a result of longevity transactions in the EMEA region and favourable foreign exchange developments.

For the Group, net premiums earned and fee income increased by 7.6 percent to $20.8 billion in H1 2021, when compared with the prior year period.

The reinsurer produced a return on investment of 3.2 percent in H1 2021, driven largely by recurring income as well as equity valuation gains.

Swiss Re’s Group Chief Executive Officer (CEO), Christian Mumenthaler, commented: “We are very pleased with the improved profitability achieved by the Group in the first half of this year. The focus on portfolio quality at P&C Re is delivering very strong results, and we are reaping the fruits of our decisive actions that brought Corporate Solutions back on track.

“Although L&H Re is still impacted by claims related to COVID-19 as we support our clients and society during this pandemic, its underlying business continues to perform well. All our businesses are growing, and our very strong capital position allows us to pursue attractive opportunities across all lines of business.”

John Dacey, Swiss Re’s Chief Financial Officer (CFO), added: “Our property and casualty businesses are on track to deliver on their ambitious combined ratio goals for this year. At L&H Re, we currently believe that the progress of the global vaccination programmes will lead to diminishing COVID-19 losses over the coming quarters. Swiss Re’s asset management continues to successfully navigate financial markets and deliver strong returns for the Group.”

Turning to the Corporate Solutions division, and net income here reached $262 million for H1 2021 after a solid turnaround of the business last year. This positive result compares with a COVID-19 driven loss of $312 million for the unit in H1 2020, and was achieved in spite of nat cat losses of $155 million.

Net premiums earned in Swiss Re Corporate Solutions increased by more than 3 percent to $2.6 billion, driven by realised rate increases and selective new business growth. The division’s RoE hit 21.1 percent, and combined ratio totalled 92.7percent, and was supported by favourable prior year development, explains Swiss Re.

At iptiQ, gross premiums written for the core business jumped by a significant 133 percent to $333 million for H1 2021, with Swiss Re noting good contributions across all businesses.

The entity’s gross income, excluding COVID-19 impacts of $5 million, increased by more than 50bpercent, year-on-year, to $26 million for H1 2021.

“The first half of 2021 has demonstrated the strength of our business model as we see our underwriting actions deliver results. While we remain in an uncertain pandemic situation, we are confident that all our businesses are well positioned to continue to perform strongly,” said Mumenthaler.

Patoma Admin by — August 3, 2021 in Insurance 0
Nigeria’s loans from World Bank, African Development Bank rise to $14.35bn

By Favour Nnabugwu

Nigeria’s loans from the World Bank and the African Development Bank rose from $7.14billion to $14.25billion between June 30, 2015 and March 31, 2021.

According to the Debt Management Office, Nigeria’s commitment to the banks rose by $7.11bn from 2015 to 2021, an increase of 98.48 per cent.

The data shows that as of June 30, 2015, the Federal Government had borrowed a total sum of $6.19bn from the World Bank.

A breakdown of the world bank’s loans to the Nigeria shows that a greater part of the loans was obtained from the International Development Association, an arm of the World Bank that specialises in giving concessional loans to poor and fragile countries.

The IDA commitment to Nigeria amounted to $6.09bn.

Another member of the World Bank group, the International Fund for Agricultural Development, had a commitment of $94.80m in the country.

Also, the AfDB commitment to Nigeria stood at $946.52m, comprising loans from various internal bodies such as the African Development Bank ($350m) and African Development Fund ($596.53m).
By March 31, 2021, the Federal Government’s debt to the World Bank had risen to $11.51bn, reflecting a $5.32bn or 86 per cent increase.

The debt included loans of $11.10bn and $410.23m from the International Development Association and International Bank for Reconstruction and Development respectively.

With a commitment of $11.51bn, the World Bank is responsible for 35.02 per cent of Nigeria’s foreign portfolio of $32.86bn as of March 31, 2021.

During the the same period, the Federal Government acquired $1.59bn from the AfDB, $0.21m from Africa Growing Together Fund and $942.51m from ADF.

As of now the AfDB’s commitment to the country is $2.74bn, representing 8.3 per cent of the country’s total external debt.

The data break down also shows that Nigeria is currently indebted to the following agencies: Export Import Bank of China, with a portfolio of $3.40bn; the Exim Bank of India, with a portfolio of $34.95m; the Agence Française de Développement, with a portfolio of $486.6m; the Japan International Cooperation Agency, with a portfolio of $74.6m; and Germany, with a portfolio of $183.7m

Patoma Admin by — August 3, 2021 in Banking & Finance 0
Naicom sentitises MSMEs on insurance August 5

By Favour Nnabugwu

The National Insurance Commission(NAICOM) is having a sensitisation programme with Micro, Small and Medium Enterprises(MSMEs) on insurance come August 5, 2021.

The Commission is bringing together MSMEs across the entire Lagos state and its environs to learn and discuss key issues around the subject through insightful conversations with experts on the field.

A statement from the commission and signed by the Head, Corp. Comms and Market Development, Salami ‘Rasaaq, said, the workshop, which will take place in Lagos on the 5th of August, 2021, added that, the executive governor of Lagos State, Mr. Babajide Sanwo-Olu is expected to declare the workshop open and deliver a keynote address.

He stressed that, the commission is serious about increasing insurance penetration, adoption and acceptance in the country and has been partnering relevant stakeholders to make this dream a reality.

The regulatory body had earlier sensitised MSMEs as well as relevant stakeholders in Kano State and the Federal Capital Territory(FCT), Abuja, on the need to subscribe to insurance products and services and the outcome was deemed successful.

Patoma Admin by — August 3, 2021 in Insurance 0
Olatunji Oluyemi passes on @ 57

By admin

 

 

An astute insurer Patrick Olatunji Oluyemi, has passed on at the age of 57 years.

According to a family member who confirmed his death, he passed on on Friday, July 23, 2021.

“With gratitude to God for a life well spent and total submission to the will of the Almighty, the Oluyemi family hereby announce the passing unto glory of their beloved, husband, father, and brother,” the family said.

A burial programme issued by the family noted that there would be service of songs in his honour at Anglican Church of the Beautiful Gate, Victoria Garden City, Lagos, on Thursday, August 12, 2012 by 5:00 pm, while burial service would hold at at the same church on Friday, August 13, 2021 by 11:00am and internment follows immediately at Ikoyi cemetery.

He was former Managing Director, Royal Exchange, Glanvill Enthoven Insurance brokers & Pensions Consultant Limited and Unity Kapital.

Patoma Admin by — August 1, 2021 in Insurance 0