Africa Re net profit rise by 69.1%, to N9. 2m in H1 2021

By Favour Nnabugwu


The African Reinsurance Corporation (Africa Re) announced that net underwriting profit grew to US$9.2 million half of the year 2021compared to US$5.4million announced, representing 69.1 percent increase..
The Reinsurers in a Statement stated that its gross premium income of US$421million was achieved in the first half of 2021 as against US$393 million reported in the same period of 2020.
The firm said it translated to a additional facultative acceptances mostly in the oil & gas portfolios.
The Corooratuin added that there was also a positive impact of the 7.2 percent growth of the gross written premium, which is a reflection of the ongoing recovery of businesses and appreciation of a few of our operating currencies against the US Dollar,especially the Rand and CFA.
Tlin addition, it added that the gains on currency fluctuation were slightly offset by the significant devaluation of the Sudanese Pound.
While the year-to-date claims experience as measured by the net incurred loss ratio improved to 61.9 percent against 64.6 percent in the same period of 2020.
The business acquisition costs increased by 22 percent from US$71 million in June 2020 to US$86 million in the period under review translating to an expense ratio of 28.5 percent compared to 24.4 percent in June 2020.
Consequently, the combined ratio at the end of June 2021 stood at 96.9 percent, an improvement over prior year’s 98.1percent.
Investment income for the reported period was US$31.3 million, a significant improvement of 68.3 percent over US$18.5 million recorded in the first semester of 2020.
As a result of above underwriting and investment performance, the Net Profit for the 1st semester of 2021 was US$23.7 million, outperforming by 27 percent the US$18.7 million achieved in the same period of 2020.
The Group Managing Director of the Corporation, Dr. Corneille Karekezi, while commenting on the performance at the end of the first half-year of 2021 stated that: “it is pleasing to note that the positive performance achieved in the first quarter of the year is being sustained through the first semester of 2021 and we remain cautiously optimistic for the rest of the year, barring any unforeseen major losses.”
Karekezi affirmed that the restructuring of previously poor performing portfolios continues to yield positive results on the claims experience despite a slight increase of the overall cost of the Covid-19 related insurance claims which continue however to be within expectation.
Africa Re explained that the increase in the top line combined with higher than usual profit commissions paid to ceding insurance companies whose solvency relief contracts performed exceptionally better.
“The positive performance was driven by capital gains and improved performance of most equities leading to higher dividend paid”.
Naicom, PenCom, NIA, LASPEC, Soyewo for NAIPCO conference Oct 14

By Favour Nnabugwu


The annual conference of the National Association of Insurance and Pension Correspondents, NAIPCO, which is harp on the impact of Covid-19 on financial inclusion; opportunities for insurance and pension sectors comes up Thursday, October 14, 2021 at Oriental Hotel, Lekki, Lagos.

The theme of the conference will examine the multiplier effects of Covid on the financial sector of the economy and the disruptions created in the economy and how to mitigate it for all.

The keynote speaker is the former Director General, Lagos State Pension Commission (LASPEC), Mrs. Folashade Onanuga, while the pioneer Director General, National Pension Commission (PenCom) and Chairman, Polaris Bank Limited, Mr. Ahmad Muhammed;  Commissioner for Insurance/CEO, National Insurance Commission (NAICOM), Mr. Sunday Thomas; Director General, National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar are special guests of honour. The chairman/chief executive officer, Prestige Insurance Brokers Limited, Prince Feyisayo Soyewo, will chair the event.

Similarly,  Chairman, Nigerian Insurers Association (NIA), Mr Ganiyu Musa; Chairman, Pension Fund Operators Association of Nigeria (PenOp), Mr. Wale Odutola, among others set for the event.

According to the NAIPCO chairman, Mr. Chuks Okonta, experts from both the insurance and pension industries and the extended financial service sector will gather to deliberate.

Chairman, 2021 NAIPCO conference planning committee, Mr. Modestus Anaesoronye, also said the awards which form part of the event would be given to individuals and companies who have distinguished themselves in the insurance and pension sectors in the last financial year.

The annual NAIPCO conference deliberates and proffers solutions to issues that affect the insurance and pension markets in Nigeria, Africa and the global stage.

Insurance agents in Nigeria, Kenya, S/Africa, Tanzania, others expands scope to Africa


L –  President Emeritus Gbadebo Olamerun; National Chairman, Association of Kenya Professional Insurance Agents, Mr Clifford Ochieng and ARIAN National President Odewunmi Olakunle at the event

By Favour Nnabugwu

The Association of Registered Insurance agents in Africa desired to form a solid organisation that will propel the association in African in order to give them more recognition to broaden their horizons.

Promoters of the initiative are: Gbadebo Olamerun, from Nigeria; Clifford ochieng, Kenya; Sayi juma, Tanzania; Peter olyot South Africa; Lizzele Van de merewe South Africa; Remco van de Veen, Netherland;Ivan Turyamusiima, Uganda; Syvia Nanukasa, Rwanda and Esther Mwchwmba, Tanzania

President Emeritus of the Association of Registered Insurance Agents of Nigeria, ARIAN, Mr. Gbadebo Olamerun in Lagos, stated that the discussions to have a pan African insurance body have been on since the past four years, stressing that the decision to form the organisation was informed by the need to foster unity among agents across the continent and promote their common interest.

He noted that the Nigerian team having met with their counterparts from other countries during the AIO conference, and have taken some resolutions, the organisation would continue to operate until when it will be fully inaugurated at the next AIO conference holding in Kenya.

Gbadebo submitted that And it was an honour and privilege that insurance agents through their Kenya Chairman, Clifford Ochieng, deliver a speech to the AIO annual general meeting, which according to him, was the first ever in AIO calendar of which
insurance agents appreciate the honour.

The Kenyan National Chairman, Association of Kenya Professional Insurance Agents AKPIA) Mr. Clifford Ochieng, stated that agents play major role in the insurance value chain as they are the foot soldiers in the insurance market.

Ochieng submitted that the organisation would help promote unity amongst agents across the continent, adding that this is the right time for agents in the continent to come together and share knowledge and come up with measures that would help them maximize inherent insurance opportunities in their various countries.

He maintained that the Kenyan’s agent fraternity has joined the AIO and implored agents associations in other countries that are yet to affiliate with body to do so, as it would help unify agents in the continent.

NAIC builds databank for farmers across Nigeria

By Favour Nnabugwu

The Nigerian Agricultural Insurance Corporation (NAIC), is building a data bank to cover farmers according what they produce in all states across the nation.

The firm’s Managing Director/Chief Executive Officer, Folashade Joseph, said this in an interview with Journalists at the just concluded 47th African Insurance Organisationtion (AIO) Conference and National Assembly in Lagos.

She stated that for insurance business to be effective and sustainable, operators should have farmers’ robust data, which they should leverage to promote their operations.

“If we have this it will help us to monitor our farm processes, storage. it will also help us as an insurance company in the agric sector to deploy products that will be useful to the agric sector.

“Data for farmers will helps us know how many farmers we have in each state and what each person is into such as rice production, maize, cassava and even processing of the produce. This is very important so that we can effectively monitor and improve on our processes,” she submitted.

She noted that index insurance can not operate effectively without accurate data.

”It is only when we have the correct data which we will improve every year that we can effectively achieve our objectives. That is key to us in NAIC and we have spoken to our supervising ministry and other stakeholders like CBN, on the need to get a perfect data.”

She also maintained that NAIC is at the verge of deploying drone to inspect and monitor farm lands against flood and insecurity.

According to her,  “This is one of strategies adopted by the firm which is aimed at improving its service delivery to policyholders. She added that the drone has not been deployed because the firm is on the process of obtaining a license to engage in such venture.

She assured that once the issue of licensing and registration are completed they will deploy the drone.

She maintain that the firm has incurred claims from flood and insecurity, adding that the company has sustained its awareness campaign with is target at ensuring food security in the country.

She implored those withing the agric value chain to insurance their business with her firm, which she said has presence across the nation.