All Posts in "Day: October 28, 2021"

Royal Exchange group announces 22% rise in underwriting profit to N11.12 bn

CAPTION

L –  Independent Director, Royal Exchange Plc, Hewett Benson, Chairman, Chief Kenny Odogwu and representative of Mazars Ojike & Partners, Miss Ngozika Onu at the event.

 

By Favour Nnabugwu

 

 

Royal Exchange Plc has recorded an underwriting profit rose by 22 per cent to N11.12 billion as a group

The group’s profit before tax appreciated by 13 per cent or N1.1 billion to N130 million when compared to a loss before tax of N1 billion recorded in 2019.

The Chairman of the group, Mr Kenny Odogwu, has said. at the 52nd Annual General Meeting (AGM) in Lagos

Odogwu said group-wide total gross written premium of N15.3 billion in 2020 while adding that gross written premium grew by eight per cent from N14.21 billion recorded in 2019.

He submitted that the total clams settled stood at N3 billion at the end of the year under review as against N3.18 billion paid to policyholders in 2019, translating to a positive variance of 16 per cent and increase in claims expenses of about N509 million.

He maintained that across the group, cost containment was effective throughout year 2020, as operating expenses reduced to N2.2 billion in 2020 when compared to N2.4 billion spent in 2019, indicating four per cent drop and N85 million savings and also translated to 23 per cent and N688 million saving as against corresponding year 2020 budgeted amount.

Speaking on the future of the company, the Chairman said the board and management are confident about the future of the company.

He assured they are doing everything within their power to ensure the future of the company is brighter and better.

Explaining the company’s efforts to recapitalise, he said while the Royal Exchange General has concluded its recapitalisation process, they are on course to conclude that of life business.

On technology he said: “The new world class software we acquired and deployed to our insurance subsidiaries has started yielding positive fruits by making our workforce seamless.”

On the company’s digitalisation plan he said: “In order to remain competitive as a fledging insurance superpower and in line with our strategic implementation of our digitalization plan, the newly upgraded website has many features including call-to- action/sale capabilities which is Customer focus.

“Clients can now log in and purchase insurance cover online and our call-centers too is now up and running with 24- hour facilities to attend to enquires.”

Coordinator Emeritus, Independent Shareholders Association of Nigeria (ISAN) Sir. Sunny Nwosu commended the company for its outstanding performance in 2020.

According to him despite the difficulty experienced during the COVID-19 the company was able to present a better financial indices.

However he implored the company to support the shareholders with dividend payout, adding that things are tough in the country and the minority shareholders needs to be put into consideration when crucial issue such as dividend is being discussed

Patoma Admin by — October 28, 2021 in Insurance 0
FG, States, LGs share N740 bn

By Favour Nnabugwu

 

 

The federal, states and Local governments have shared the sum of N739. 965 billion as federation revenue which was earned in the month of September.

This was contained in a communiqué issued at the end of the virtual meeting of the Federation Account Allocation Committee (FAAC) for October, 2021.

The N739.965 billion total Distributable Revenue comprised distributable Statutory Revenue of N577.765 billion, distributable Value Added Tax (VAT) revenue of N159.096 billion and Exchange Gain of N3.104 billion.

In September 2021, the sum of N126.272 billion was the total deductions for cost of collection, statutory transfers, savings and refunds. The balance in the Excess Crude Account (ECA) was $60.860 million.

The communiqué confirmed that from the total Distributable Revenue of N739.965 billion, the Federal Government received N301.311 billion, the State Governments received N220.272 billion, while the Local Government Councils received N164.176 billion. The sum of N54.206 billion was shared to the relevant States as 13% derivation revenue.

The distributable Statutory Revenue of N577.765 billion was available for the month.

From this amount, the Federal Government received N276.008 billion, the State Governments received N139.995 billion; while the Local Government Councils received N107.930 billion.

The sum of N53.831billion was given to the oil producing states as 13% derivation revenue.

In September 2021, the gross revenue available from the Value Added Tax (VAT) was N170.850 billion.

This was lower than the N178.509 billion available in the month of August by N7.659billion.

The sum of N4.920 billion allocation to NEDC and N6.834 billion cost of revenue collection were deducted from the N170.850 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N159.096billion.

From the N159.096billion distributable Value Added Tax (VAT) revenue, the Federal Government received N23.864 billion, the State Governments received N79.548 billion and the Local Government Councils received N55.684 billion.

The Federal Government received N1.438 billion from the Exchange Gain revenue of N3.104 billion. The State Governments receive N0.729 billion, the Local Government Councils received N0.562 billion, while N0.375 billion was shared to the relevant States as 13% derivation revenue.

According to the communiqué, in the month of September 2021, Petroleum Profit Tax (PPT), Oil and Gas Royalties and Excise Duty increased significantly, while Companies Income Tax (CIT), Value Added Tax (VAT) and Import Duty decreased marginally.

It was gathered that the federal government rescinded its earlier decision to deduct the controversial $418 million from the funds from states and local governments’ allocation in order to pay consultants who claimed that they assisted the two tiers of government in securing Paris Club over-deductions from the federal government.

Sources at yesterday’s FAAC meeting revealed that the decision to suspend the deductions was to avoid a delay in the sharing of the monthly revenue which could lead to the failure of the three tiers of government in meeting their financial obligations, including the payment of workers’ salaries.

It was learnt that last week’s meeting had agreed on all indices and sharing concluded but for the issue of the deductions from the allocations of the states and the LGs, which brought the stalemate.

The suspension of the deductions, sources said was to enable the parties “sort things out” before a conclusive action would be taken at subsequent FAAC meetings.

Patoma Admin by — October 28, 2021 in News 0
NGX Group records 26.5% profit growth to N1.73bn in 9 months

By Favour Nnabugwu

 

The newly listed NGX Group Plc, the holding company of Nigerian Exchange Limited (NGX), has reported 26.5 percent growth in its Profit Before Tax (PBT) to N1.73 billion for the nine months ended September 30, 2021 as against N1.37 billion posted in the corresponding period in 2020.

The Group’s revenue for the period also grew to N4.39 billion from N3.78 billion, representing 15.9 percent increase.

Highlights of the Group financial statement released on the NGX today showed that total expenses was up 12.23 percent to N4.15 billion driven by 11.1 percent and 20.9 percent increase in staff cost and operating expenses respectively.

Total assets for the period rose by 3.2 percent to N24.32 billion from N23.57 billion.

It would be recalled that following its successful demutualisation on March and restructuring of the former Nigerian Stock Exchange and its related operations within the new NGX Group , the firm, on October 15, 2021, listed two billion ordinary shares by introduction on the Main Board of the Exchange, thereby giving minority shareholders the opportunity to buy into the Group.G

The Group Managing Director/Chief Executive Officer, NGX Group, Mr Oscar Onyema speaking on the listing, said: “The demutualisation of the Nigerian Stock Exchange created the opportunity to restructure and reposition the organisation to achieve our expanded vision to be the preferred and premier exchange hub for Nigerian businesses and the wider African economy.

“The most significant benefit of our listing on the NGX exchange is the ability it gives us to drive inorganic growth as we add new subsidiaries and business lines that complement our business.

“This new era is, indeed,very exciting for us and we look forward to many possibilities achievable from deepening our various partnerships.”

Patoma Admin by — October 28, 2021 in News 0
Hassan-Odukale is FBN largest shareholder – FBN Holding

By Favour Nnabugwu

 

 

 

First Bank Nigeria, FBN Holdings Plc, has explained to the Nigerian Exchange Limited, NGX how Tunde Hassan-Odukale is classified as the highest single shareholder of the bank through his related parties holding of 4.16 percent and 1.20 percent of shares respectively.

This is coming after a controversy on who becomes the highest single shareholder of First Bank Nigeria since Femi Otedola acquired 5.07 percent stake in the bank.

However, there has been speculation attributing 5.36 percent to Hassan-Odukale in what some people thought its a boardroom politics to prevent Otedola from becoming chairman.

In response to this speculation, Seye Kosoko, the company secretary, FBN Holdings said Hassan-Odukale is its largest single-holder.

Kosoko attributed Leadway Pensure PFA’s entire 2.11percebt stake in FBN Holdings to Hassan-Odukale, although they are pension funds invested by Leadway on behalf of the public.

Also listed in Hassan-Odukale’s favour by Kosoko is 1.36percent of “ZPC/Leadway Assurance Prem & Inv Coll Acct” which is also insurance funds invested on behalf of the public.

FBN Holdings appears to be classifying both as Hassan-Odukale’s personal investments.
Over the weekend, FBN Holdings had notified investors that Otedola’s equity had surpassed 5 percent

Before then, Hassan-Odukale’s stake was put at the territory of 3 percent

In trying to clarify its record with the NGX regulation, FBN said it classified Hassan-Odukale’s shareholdings into two because of his significant stakes in related parties.

“The reason for classifying the shareholdings of Mr. Tunde Hassan-Odukale and his related parties into two parts of 4.16percent and 1.20 percent respectively,” FBN Holdings said.

“We wish to reiterate and clarify for your records that the notification of the shareholdings of Mr. Tunde Hassan-Odukale as a Director of First Bank of Nigeria Limited and thus an Insider, was filed with the NGX and other relevant regulators on October 18, 2021.

“The first part of the shareholding classification (4.16percent), are shares held directly and indirectly by Mr. Tunde Hassan-Odukale. The second part of the shareholding classification (1.20 percent), are shares ascribed to Mr. Tunde Hassan-Odukale due to his influence and having significant control.”

Patoma Admin by — October 28, 2021 in Banking & Finance 0
CHI renews N24m GPA cover for journalists till Sept 30, 2022

By Favour Nnabugwu

 

 

Consolidated  Hallmark Insurance(CHI) Plc, has renewed the N24million group personal accident insurance cover for insurance journalists in the country for another year to elapse 30th September, 2022.

This annual policy which has been on cover since 2012 for all members of National Association of Insurance and Pension Correspondents (NAIPCO), is part of CHI corporate social responsibility (CSR) project.

The cover which began 1st October, protects journalists exposure to danger and hazard on the line of duty, it covers death, permanent disability and medical expenses.

The group managing director/CEO, CHI, Mr. Eddie Efekoha said this gesture is to identify with NAIPCO members and show value and respect for journalism, who are the shaper of the society, and by extension, the insurance industry.

Journalism, he said, is a risky profession, hence, the need to adequately provide insurance for those covering the insurance industry.

In the case of the death of any of the concerned journalists, he said, the family of the deceased is entitled to N1 million death benefits. He explains, “A journalist who suffers permanent disability in the discharge of his duties will also be entitled to N1 million. The cover provides for medical expenses to the tune of N200,000 per journalist in the case of an accident.”

The chairman, National Association of Insurance and Pension Correspondents(NAIPCO), Mr. Chuks Udo Okonta, commended the firm for the cover reiterating that the association appreciates the yearly renewal at no cost to the association, showing how much the company endorses the role of journalists in the society to discharge their duties without let or hinderance at all times.

Patoma Admin by — October 28, 2021 in Insurance 0