All Posts in "Year: 2021"

By Favour Nnabugwu

The Managing Director/CEO of NEM Insurance Plc, Tope Smart, has purchased an additional four million units of the insurance firm’s shares worth a total N9.24 million.

This is according to a notification signed by the firm’s Secretary, Olajumoke Philip-Akede, and sent to the Nigerian Stock Exchange Market today.

According to the disclosure, the transaction which occurred in only one tranche took place on the 8th of January, 2021 and saw a total of 4 million units of the firm’s share purchased at N2.31 per share.

NEM Insurance earlier announced the distribution of bonus shares of 4.7 billion units at N0.50k worth N2.36 billion.Ni

The company is a non-life insurance  group organized around 6 areas of activity, namely; car insurance (29.1% of gross written premiums), fire insurance (23.8%), accident insurance (20.2%), oil and gas insurance (14.8%), marine insurance (10.9%), reinsurance (1.2%).A

Asat the time of reporting this, NEM Insurance Plc shares currently ended trading today, 11 January at N2.30.

Patoma Admin by — January 11, 2021 in Insurance 0

The China Banking and Insurance Regulatory Commission (CBIRC) is reported to have begun soliciting public opinion on a revised regulation on foreign insurance companies, according to the Xinhua News Agency.

It reported that the CBIRC said the revised regulation will mainly clarify access conditions for foreign insurers and overseas financial institutions, fine tune shareholder change and access requirements, and scrap foreign ownership caps. “New market access conditions will not be added and entry barriers will not be raised under the revised regulation, the CBIRC said, adding that the domestic and foreign insurers will be able to conduct business under the same rules,” said the news report.

It added that, according to the CBIRC, the revised regulation aims to promote a higher level of opening up, while continuing to strengthen risk management and control

Patoma Admin by — January 11, 2021 in Insurance 0

By admin

Global merger and acquisition (M&A) activity fell to its lowest level last year since the financial crisis, but a surge in the final quarter is expected to continue in 2021, according to new data from Willis Towers Watson (WTW).

The research in partnership with the M&A Research Centre at The Business School, formerly Cass, reveals that Covid-19 dragged M&A activity in 2020 to its lowest level for years.

Companies worldwide completed just 674 deals valued at more than $100m. This is significantly less than 774 in the previous year and the lowest annual volume since 332 were record in 2009, according to WTW’s Quarterly Deal Performance Monitor (QDPM).

But the QDPM shows a sharp rise in M&A volume during the final quarter with 246 deals completed worldwide, compared to 210 in Q4 2019. There were 61 large deals valued between $1bn and $10bn, which is the highest ever recorded during a final quarter.

This Q4 resurgence was driven by a strong uptick in North America, which saw a record 136 deals for a final quarter.

WTW said that despite the uncertain economic outlook, conditions are primed for a global “dealmaking surge” in 2021.

Jana Mercereau, head of corporate M&A consulting, Great Britain at WTW, said: “The year 2020 has been unlike anything we’ve ever seen, fuelled by an enduring pandemic, massive economic uncertainty, a highly divisive US presidential election and rising geopolitical tensions. While the world in 2021 remains a volatile place, pent-up demand, ample funding, ultra-low interest rates and confidence returning to boardrooms indicate conditions are ripe for one of the biggest M&A years on record.

“That said, dealmakers should not assume a corner has been turned, with uncertainty set to remain. It will be as critical as ever for acquirers to pick their targets carefully for growth before jumping into a deal, if they are to give themselves the best chance of success. A dedicated focus on HR and people-related risks during due diligence and integration can help achieve this,” she added.

WTW’s monitor also shows that acquirers worldwide have now, on average, failed to add value from transactions for four consecutive years, based on share-price performance. They underperformed the global index by 1.9 percentage points during the past year. But this is an improvement on underperformance of five and three percentage points in 2019 and 2018 respectively.

European buyers, meanwhile, outperformed their regional index by 12.2 percentage points in 2020 and by 5.3 percentage points in Q4.

UK acquirers beat the European Index by 4.1 percentage points for the full year.

Patoma Admin by — January 11, 2021 in Insurance 0

The Federal Government has signed a Memorandum of Understanding with Mota-Engil Group for the construction of US$1.959 billion Kano-Maradi Standard gauge railway line.

Minister of Transportation, Rotimi Amaechi signed on behalf of the federal government while the Managing Director, Mota- Engil, Antonio Gvoea signed on behalf of the contracting firm.
 
The new railway corridor which is to be located in northern Nigeria will run through Kano, Jigawa and Katsina states and through Niger Republic territory as far as Maradi. Other cities to benefit directly from the passage of the rail route are Danbatta, Kazaure, Daura, Mashi, Katsina and Jibiya.
A statement signed by Eric Ojiekwe, Director, Press and Public Relations, Ministry of Transportation noted that the 283.750-kilometre rail line besides developing freight and passenger transport, “will be integrated with road transport to make a great contribution to the local economy as well as an important development in the social sector.”
The project duration is for 36 months and the contract type is Engineering, Procurement and Construction.
 
The signing ceremony was witnessed by the Permanent Secretary, Federal Ministry of Transportation, Dr Magdalene Ajani; Director, Legal Services, Pius Oteh; Managing Director, Mota-Engil Group, Antonio Gvoea; Head of Legal, Mota- Engil Group, Cameron Beverley; Magajin Garin Kano, Muhammad Wada; Director, Mota-Engil Group, Kola Abdulkarim; Vice President, Mota-Engil Group, Mohammed Abdul-Razaq; Nigerian Ambassador to Germany, Yusuf Tuggar; Managing Director, Nigerian Ports Authority, Hadiza Bala-Usman among other personalities
Patoma Admin by — January 11, 2021 in Others 0

Not less than 40 reinsurers hold a minimum S&P rating of A- in 2020

Those reinsurers have raised nearly 10 billion USD in capital last year

In 2020, 8 of the top 10 reinsurers have had their ratings confirmed, while two of them have been downgraded.

The current year has also witnessed the arrival of new reinsurance companies, determined to tap into the potential price rebound.

Against all odds, some of these reinsurers have even managed to raise funds in 2020. However, this injection of new financial resources was not good enough to offset the slight decrease in capacity reported during the current year.

Thanks to the rebound in the equity markets, the 20 largest reinsurers had a capital surplus of 8 percent at the end of 2019, an assessment being made in relation to the requirements of their rating level.

Since the natural catastrophes that heavily affected 2017 and 2018, no reinsurer has been granted an AAA rating. At the end of 2020, the best rating, AA+, is held by only one reinsurer, Berkshire Hathaway while three other reinsurers are rated AA.

In addition to natural catastrophes, other factors have led to the downgrades in ratings seen in 2017-2018. These downgrade factors include asset-liability management adjustments, longevity risk capital charges, share buybacks and special dividends.

Notably, no reinsurer in the top 10 managed to obtain a higher rating in 2020 than the one obtained in 2019

The overall level of both traditional and alternative capital has recently declined. This has helped to support the rebound in non-life reinsurance rates in an industry that so badly needs it.

It should also be noted that with the exception of AM Best, most rating agencies have downgraded the outlook for the sector from stable to negative. Standard & Poor’s expects a drop in profitability that will have its impact on the combined ratio.

The agency estimates that this ratio will be close to 105 percent in 2020, or even higher if losses related to coronavirus exceed $30 billion for the whole insurance and reinsurance industry. Only AM Best has kept the market outlook stable.

Patoma Admin by — January 10, 2021 in Insurance 0
FG awaits Chinese $5.3bn to start Ibadan-Kano rail-line

 The Minister of Transportation,  Rt. Hon. Chibuike Rotimi Amaechi has said that the federal government would commence the construction of the Ibadan to Kano rail project this year when the Chinese government approves its $5.3 billion dollars loan.

Amaechi, who spoke when he appeared on the NTA Weekend Deal Programme in Abuja, said that what was approved by the government was the approval for the contract.

“We are waiting for the Chinese government and bank to approve the $5.3bn to construct the Ibadan-Kano. What  was approved a year ago was the contract.

“The moment I announce that FG has awarded a contract of $5.3bn to CCECC to construct Ibadan-Kano, they assume the money has come in, no.

“Up to now we have not gotten the money a year after we have applied for the loan, we have almost finished the one of Lagos-Ibadan. If we don’t get the loan now, we can’t commence,” he added.

Amaechi further stated that when the Ibadan-Kano rail would link six areas which are Kaduna-Kano-Abuja-Minna-Ilorin-Oshogbo-Ibadan where cargoes could be moved to Kano from Lagos.

Reacting on the issue of wet cargoes on the road causing accidents,  he said that for now, cargoes can only go from Lagos to Ibadan.

He stated that when the Ibadan to Kano rail project is completed wet and dry cargoes can be transported from Lagos to Kano.

Patoma Admin by — January 10, 2021 in Others 0

Gilles-Alexandre Ayiman has been promoted General Manager of the Ivorian subsidiary of WAICA Re. The appointment took effect on 1 January 2021.

A graduate of the Centre National de Prévention et de Protection (CNPP France) and the Institut national polytechnique Félix Houphouët-Boigny in Yamoussoukro (Côte d’Ivoire), Ayiman has worked as audit engineer/risk underwriter for three years at Atlantique Assurances. In 2019, he joined WAICA Re Côte d’Ivoire as Assistant Manager.

Patoma Admin by — January 8, 2021 in Insurance 0
LIoyd’s shut down underwriting room over New Covid-19

Lloyd’s has pulled down the shutters on its underwriting room again as the UK enters a new lockdown.

Lloyd’s first closed the doors to its iconic One Lime Street building in March during the first wave of Covid-19.

It reopened in September by staggering markets across named days of the week. Lloyd’s then restricted access to Wednesdays when London entered Tier 4 Stay at Home measures on 20 December 2020.

But Lloyd’s has now completely shut its underwriting room

In a statement given to Reuters this week, Lloyd’s said it is unlikely to reopen the underwriting floor before mid-February 2021, in line with the UK’s six-week national lockdown.

The UK’s House of Commons is due to vote on new regulations that would allow the lockdown measures to stay in place until the end of March.

Patoma Admin by — January 7, 2021 in Insurance 0

Cigna completed the sale of its group life  and disability insurance unit to New York Life Insurance for $6.3 billion in a move to focus on its healthcare businesses, the companies announced Thursday.

The acquisition of Cigna’s group life, accident, and disability insurance business, first announced a year ago first adds about 3,000 employees and more than nine million customers to New York Life’s “portfolio of strategic businesses,” the companies said.

Cigna said it expects to realize $5.3 billion in “net after-tax proceeds” and “expects to utilize the proceeds primarily for share repurchase and repayment of debt,” the company said in a filing on Thursday with the U.S. Securities and Exchange Commission. Cigna has said it will also use proceeds to pay down debt accumulated from its $67 billion acquisition of the pharmacy benefit manager Express Scripts more than a year ago.

Cigna’s move is similar to what Aetna did in 2007 agreeing to sell its life and disability business to The Hartford Group for $1.45 billion in cash.

“This acquisition, the largest in our company’s history, reinforces our financial strength by generating capital that can contribute to our surplus, dividends, and earnings,” New York Life Chairman and CEO Ted Mathas said Thursday in a statement. “We are excited to welcome to New York Life our new employees and the millions of new customer relationships that we will gain through this milestone transaction. We look forward to building on our leading group benefit solutions market position in the years ahead.”

Meanwhile, Cigna is focusing on its health offerings to consumers, employers and those insured by Medicaid and Medicare. Cigna is in a race with rival health insurance companies like UnitedHealth Group, Anthem, Humana and CVS Health’s Aetna health insurance business to grow its business administering health benefits for seniors as more flock to Medicare Advantage plans.

For its battles ahead, Cigna will need cash from the New York Life divestiture as it competes with rivals into the business of providing healthcare services.

Patoma Admin by — January 7, 2021 in Insurance 0

Swiss Re Corporate Solutions announces that it has received a direct insurance authorisation from the South African joint regulators Prudential Authority and Financial Sector Conduct Authority. Located in Johannesburg and fully operational, Swiss Re Corporate Solutions Africa offers customers in South Africa the full range of its products, including non-traditional risk solutions, as well as its long-term capacity and underwriting expertise.

Swiss Re Corporate Solutions Africa will underwrite some of the largest and most complex risks in South Africa across a broad spectrum of industries. With a focus on mid- and large-sized corporate customers, the company provides commercial insurance services primarily in the Property, Engineering & Construction, Energy (Operational Power including Renewable Energy & Operational Mining), Casualty, Bank Trade & Infrastructure, Surety and Financial & Professional Liability lines of business. The company also offers Innovative Risk Solutions, which can be tailored to a customer’s unique exposures.

“This direct insurance licence helps us strengthen our presence and further expand our offerings in South Africa,” said Fred Kleiterp, CEO Europe, Middle East & Africa at Swiss Re Corporate Solutions. “It is evidence of our strong commitment to this important market and underlines our ambition to be a sustainable partner to our customers and brokers in the region.“

“Our market partners in South Africa will continue to benefit from our strong lead capabilities, innovative solutions and financial strength,” said Michelle Oosthuizen, Head South Africa at Swiss Re Corporate Solutions. “Our own licence will enable us to better support our customers and brokers and build a sustainable, long-term business in South Africa.”

Swiss Re Corporate Solutions established operations in South Africa in 2015. To date it has operated in the country as Swiss Re Corporate Solutions Advisors South Africa, a licenced Financial Services Provider (reference no. 45661) binding direct commercial insurance business through a binder agreement with Guardrisk Insurance Company Ltd.

Patoma Admin by — January 7, 2021 in Insurance 0