AM Best affirms b++ to ASR Re, Bermuda

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AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to ASR Re Limited (ASR Re) (Bermuda).

ASR Re is a wholly owned subsidiary of ASR Holdings Limited (ASR) (Mauritius), the non-operating holding company of the ASR group. The outlook assigned to the Credit Ratings (ratings) is stable.

The ratings of ASR Re reflect ASR’s consolidated balance sheet strength, which AM Best assesses as very strong, as well as the group’s adequate operating performance, limited business profile and appropriate enterprise risk management. In addition, the ratings reflect the strategic importance of ASR Re to the ASR group.

ASR Re is the group’s Bermuda-based specialty reinsurer and will be the principal contributor of premium income. In addition to writing third-party reinsurance, ASR Re will provide reinsurance protection to its subsidiary Africa Specialty Risks Reinsurer (Mauritius).

ASR is a new entrant in the African corporate specialty reinsurance sector. The group has been capitalised initially with USD 20 million of common shareholders’ equity, drawn from a USD 50 million facility managed by Helios Investment Partners, a private equity investor and manager with a track record of investing in companies with an African focus. AM Best expects the remaining USD 30 million of committed capital to be drawn down over its startup five-year (2021-2025) business plan.

ASR is expected to maintain the strongest level of consolidated risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio, over its startup five-year business plan, taking into account AM Best’s additional capital requirements for new company formations. An offsetting factor in the balance sheet strength assessment is the small absolute size of ASR’s capital and surplus, by international standards; however, this is offset partly by the good credit quality of its retrocession panel and its small net line size.

In addition, ASR is exposed to the high levels of economic, political and financial system risks that are associated with its target operating environment in the African specialty reinsurance market. However, this is partially mitigated by robust risk management practices, good geographic diversification and a strategy to primarily reinsure assets of developed market corporates that have an African touchpoint.

The adequate operating performance assessment considers the group’s five-year business plan, taking into account its competitive environment and heightened execution risk during the startup phase. AM Best expects the group’s operating performance to rapidly improve in line with the five-year plan. This is supported by non-technical earnings from its managing general agent operations in London and Mauritius, through which the group’s business will be sourced.

In the initial years of operation, the group is reliant on several third-party capacity providers, some of which have multiyear agreements, to write business. As the group matures, ASR is expected to diversify the panel of capacity providers as well as grow its direct book of business.

AM Best expects ASR to face competition from well-established global reinsurers in the African corporate specialty reinsurance market. However, AM Best expects the group’s competitive position to be enhanced through the agile and bespoke services provided cedants and the establishment of strategic partnerships with local market participants.

Furthermore, the group has a senior management and underwriting team in place that has extensive experience in the targeted classes of business and operating environment. In AM Best’s view, this increases the likelihood of market acceptance and successful execution of the group’s business plan.

Munich Re launches second green bond to support climate strategy

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Reinsurer Munich Re has launched its second green subordinated bond after a successful issuance in 2020, designed to reinforce its capital base with a focus on emerging growth opportunities in reinsurance markets.

Organic growthThe volume of this issue is €1 billion (USD 1.2 billion) and the bond has a coupon of 1 percent and will mature in 2042.

In comparison, the 2020 green bond issuance totalled €1.25 billion (USD 1.46 billion), has a coupon of 1.25 percent and is scheduled to mature in 2041.

The launch of the second green bond in its corporate history supports the company’s climate strategy.

As part of Munich Re’s Ambition 2025, the company has adopted a broad climate protection programme featuring concrete climate protection targets for its investments, insurance business, and operations.

Liberty Mutual Reinsurance

The firm intends to use the raised capital to finance or refinance sustainable projects in accordance with its Green Bond Framework.

According to Munich Re, these projects include investments of equity and debt in renewable energy, energy efficiency, clean transportation, green buildings, sustainable water and waste water management, the co-efficient and/or circular economy, and the environmentally sustainable management of natural resources and land.

Ultimately, this bond underlines the company’s commitment to using the capital markets to help achieve a climate-friendly transformation of the economy.

Christoph Jurecka, Chief Financial Officer (CFO) at Munich Re, commented: “Climate protection is an integral part of our Ambition 2025 Group strategy. By issuing a green bond, we have once again leveraged the capital markets to fund green investments. We strengthen our capital base, which gives us the financial flexibility to take advantage of current growth opportunities.”

Swiss Re to launch central cyber underwriting team

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Global reinsurer Swiss Re is set to create a central cyber underwriting team, led by AXA XL’s John Coletti, that will assume responsibility for group’s product development and underwriting activities in the space.

Swiss ReColetti will join Swiss Re as Head of Global Cyber in early October and previously served as the Chief Underwriting Officer for Cyber at AXA XL since 2012.

He will report to Gregory Schiffer, Head of Global Specialty, and will be responsible for Swiss Re’s global cyber business, which includes portfolio ownership, global underwriting activities as well as cyber product development.

Maya Bundt, the current Head of Cyber Solutions, has decided to take on a newly created role at the Swiss Re Institute’s Cyber Centre of Competence.

“With John Coletti, we have been able to attract another experienced leader in the cyber insurance market,” said Schiffer.

Liberty Mutual Reinsurance

“At the same time, I would like to thank Maya Bundt for her leadership, and the innovation and successes that have already been achieved in our cyber business.“

CHI announces 22% rise in total assets to N14.31bn for 2020

CAPTION

L – Mr Eddie Efekoha, Group Managing Director, Mr Obinna Ekezie, Chairman and Mrs Rukevwe Falana, Company Secretary of Consolidated Hallmark Insurance during the 26th Annual General Meeting of the Company in Lagos.

 

By Favour Nnabugwu

 

Consolidated Hallmark Insurance, CHI, in the financial year ended December 2020 announced a total assets of N14.31billion from N11.74billion recorded  in the previous representing 22 percent increase.

Chairman, Mr. Obinna Ekezie while unveiling the 2020 business score for CHI told shareholders that the company has once again reported positive result, despite limitations on the economy during the financial year.

Ekezie said the company generated an all time high gross premium written of N9.77bn, 12 percent higher compared with the N8.69bn performance for 2019. Similarly, the net underwriting income grew from N5.46bn to N6.5bn.I

Also in the period under review, claims expenses jumped by 21 percent from previous N3.45bn to N4.17bn which he underlined as “an affirmation of our commitment to continually maintain our sterling reputation of ensuring that customers get value through prompt payment of all valid claims.”

In the combination of positive result is the 8.6 percent growth in profit before tax which moved from N711 million to N772 million, while profit after tax increased to N677.98 million from N600,31 million.

Dividend approved interim though, was N216.8 million and this translates to two kobo per share to shareholders “in appreciation of their faith in the company.”

The group managing director, Mr. Eddie Efekoha in his statement enlightened stakeholders on the impact of the sharp fall of interest rate which caused the investment income to slide from N1.08bn to N940 million because of the preference of security of investment portfolio than pursuit of high-risk, high return options.

Efekoha cleared that the company is not constrained by increasing claims but it calls for “improved underwriting measures to isolate bad risks and reward good ones. We have therefore adopted enhanced underwriting measures to enhance operational efficiency and customer service.”

Despite the Court order on recapitalisation, he said the company has been proactive, first, it achieved 50.7 percent by raising capital to N5.65bn in December 2020 ahead of the earlier deadline of December 31, 2020 for 50 percent as a general business insurer. The shareholders fund as at end of December 2020 was N8.03bn.

Consolidated Hallmark helmsman also recounted the rating and awards secured so far which include the re-certification of ISO Quality Management Systems certification in 2020 and stable Bbb rating by Agusto & Co, setting the company as an investment grade business with strong liquidity and capital adequacy.

Tope Smart meets AIO standards as next president

By Favour Nnabugwu

As the vice-president of the African Insurance Organisation (AIO), Mr. Tope Smart has the automatic ticket to be the next AIO president according to the body’s standards.

It will be recalled that Tope Smart was made the vice-president at the AIO’s 46th conference and annual general assembly in Johannesburg, South Africa 2019.

Smart, who is also the Group Managing Director, NEM Insurance Plc, had been a board member of AIO’s executive committee.

Smart expressed his commitment to the aims and objectives of the AIO.

He also reiterated his commitment to ensure the continuous growth and development of insurance on the continent.

Apart from giving him the opportunity to collaborate with leaders of insurance companies in other African countries, Smart will leverage on the spread of AIO, to make an enduring marks as the president

He stated, “I feel very excited becoming the AIO President because it will give me the opportunity to strike synergy and partnership with leaders of insurance companies in other African countries to be able to initiate and implement some of my dreams for the insurance industry in Africa in general,”

Impacting on the Nigerian insurance industry, he mentioned, “What I intend to do as the President of AIO to impact the Nigerian insurance industry is to see what is working in the insurance industry in other African countries that made them to contribute much more than we are doing to the economies of those countries such as South Africa with a penetration rate of 14 per cent; Kenya with a penetration rate of 2.5 per cent and some other countries that are doing much better in terms of the insurance”.

“So some of those things are what I will look at critically and ensure they are also implemented in Nigeria and also those that we need to implement locally to enable us to increase our penetration rate; we will also liaise with relevant government agencies to make sure that they are implemented”

“I will partner with relevant government agencies to ensure full implementation of compulsory insurances; of course this is critical for the growth of the insurance industry in Nigeria.

Tope Smart, a graduate and an award winner from the University of Lagos also holds a Masters Degree in Business Administration (MBA) from the University of Nigeria, Nsukka.

He is an Associate member of both the Chartered Insurance Institute of London and the Chartered Insurance Institute of Nigeria. Tope, an astute professional, believes very strongly in the entrenchment of insurance in the mind of every Nigerian.

He is a Council member, Chartered Insurance Institute of Nigeria, Councilmember, West African Insurance Companies Association (Ghana), Councilmember, Nigeria-Britain Association, a past Chairman of the Nigeria Insurers Association to mention but a few.

Tope sits on the board of several companies amongst which are RegencyNem Insurance (Ghana) Limited and NEM Asset Management Limited. In 2014, he was appointed by the Federal Government as Co-Chairman of the Insurance Industry Transformation Committee.

He was also recently appointed as Chairman, Planning Committee of the University of Lagos Alumni Association’s Golden Jubilee Anniversary. In recognition of his outstanding achievements, Tope has won several awards among which are Distinguished Alumnus by the University of Lagos, University of Lagos Alumni Association Golden Jubilee Special Recognition Award amongst others.

He is also a two-time winner of the Business day Top 25 CEOs award. Tope is an alumnus of Harvard Business School.

Ronke Adedeji moves on from Leadway Pensure

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The Managing Director of Leadway Pensure PFA, Mrs Ronke Adedeji is moving on after over a decade at the helm of affairs of the organisation. She is passing the baton to explore new opportunities after years of dedication, strategic thinking, and impeccable work ethic.

During her tenure as the Managing Director of Leadway Pensure PFA, Mrs. Adedeji propelled the brand from a new company into a renowned pension powerhouse it is today. Amongst many other landmark achievements, she executed the digital transformation of the company, leveraged technology for business growth and efficiency, while also driving cutting-edge innovations within the pension industry.
According to the Chairman, Mr. Oye Hassan-Odukale “On behalf of the board, management and staff of Leadway Pensure PFA, I want to thank our Managing Director, Ronke Adedeji, for her professionalism, dedication, and commitment to building and propelling the Leadway Pensure brand through the years. The impeccable achievements our company recorded under her leadership are testaments to her transformational leadership. I wish her all the best in her future endeavours.”

The outgoing Managing Director has built a successful career, one bedecked with accomplishments. Before her career in Leadway Pensure PFA, she was the Head of Capital Issues Division of ICON Limited (Merchant Bankers).

From there, she moved to MBC International Bank Limited and then rose to become the Executive Director. Her banking experience covers Investment Banking, Retail Banking, Corporate Banking, Treasury, Corporate Services, Capital Markets, and Securities.

Mrs. Ronke Adedeji is a Fellow of the Association of Chartered Certified Accountants, UK (FCCA), a Fellow of The Institute of Chartered Accountants of Nigeria (FCA), and an Associate Member of the Chartered Institute of Taxation of Nigeria (ACIT). She has attended various leadership, strategy, and corporate governance courses at Lagos Business School, IESE Business School Barcelona, University of Pennsylvania-Wharton Business School, Stanford University-Graduate School of Business, INSEAD, and Northwestern University-Kellogg School of Management.

She was the first female president of the Pension Fund Operators Association, Nigeria (PENOP) and has received several awards and recognition for driving excellent service delivery for Leadway Pensure PFA. She is passionate about excellence, good governance and best practice.

It is significant to note that Leadway Pensure PFA has appointed a new Managing Director, Mr. Lanre Idris. He is a seasoned financial practitioner, who will continue to lead the brand forward and sustain its position as one of the foremost Pension Fund Administrators in Nigeria

Naicom begins online operations today

By Favour Nnabugwu

The National Insurance Commission has began online of all its operations including the processing of requests from insurance institutions today, September 1, 2021.

The announcement which was contained in a circular addressed to Managing Directors and Chief Executive Officers of all insurance institutions was released on August 27, 2021.

The circular titled, “Adjustment of NAICOM Operations” was signed by Director Policy and Regulations, Leo Akah.

The circular reads, “To enhance efficient and effective service delivery, the operations of the Commission will Go-live with effect from Wednesday 1st September 2021.

“The import of this adjustment is that effective from 1st September 2021, NAICOM’s operation will transit from manual to online processing and all operational activities or issues concerning Insurance Institutions that requires the Commission’s attention, comment and approval will be submitted and processed via the NAICOM Licensing System.

“Consequently, all Insurance Institutions are required to align their operations to NAICOM Portal for submission and processing of all requests.”

According to the circular, requests that can be submitted include Certificate of Registration/Renewal, Approval in Principle, Product Authorization, Micro Insurance, Takaful Insurance, Letter of Request, Financial Statement Approval, Enforcement Actions, Governance and Complaint issues among others.

NAICOM directed that all enquiries on the adjustment of its operations be sent to its designated portal, portal@naicom.gov.ng