All Posts in "Day: May 5, 2022"

The real story behind the new magnificent NIA house

By Tope Adaramola

 

In a few days from now insurance operators, the crème of the professions and the general public would congregate on 42, Saka Tinubu Street, Victoria Island to formally unveil the magnificent office complex of the foremost Insurance Underwriters body in Nigerian Insurers Association (NIA). To those who curiously observe the sprouting of the building from its foundation stage to completion, the edifice is without a doubt one of the finest buildings owned by any professional body in Nigeria.

It stands as a solid optics for the solvency brand which the insurance industry is stridently craving for itself as a departure from the hangover of the battered image in the eyes of the public. Aside this, the three story glass cladded building will enhance the already adorable skyline of the highbrow Victoria Island, where many notable blue chip companies are headquartered, to the betterment of the image and prestige of the insurance industry.

For watchers of history, the new building is coming as a replacement for the seemingly obsolete single floor building that housed the Association since 1998. The former building initially served as the residential apartment of the then popular Niger State born Shehu Musa, then Chairman of the National Population Commission (NPC).

Having experienced all the theatrics that led to the Association securing the old building, the unveiling of the new edifice naturally propelled my recall of history as a firsthand actor, being the second Public Relations Head of the NIA, to enrich the memory of readers and industry operators about the background to the building. I actually resumed work with the NIA in April 1998 at 5, Customs Street, Marina,Lagos where Association was a tenant of the then National Insurance Corporation, under the youngish Alhaji Mohammed Kari.

If my memory serves me right, the Governing Council of the Association was well studded with the likes of Professor Joe Irukwu , Mr Adetayo A Akintunde, Prince Omosanya Akinyemi, Adewuyi Adetunji, barritone voiced Bolaji Banjo, a. k. a BOB; Godwin Aleguino, Ope Oredugba, James Ayo, Mazi Silvester Odenigwe et al. On the youthful divide were the likes of Late Tunji Ogunkannmi, Oye Hassan-Odukale; Emannuel Oyetoyan; Alhaji Mohammed Kari, Bala Zakarya’u. Fola Daniel, Olurunnimbe Oviosu and Tope Smart, etal.

I personally found the Council quite interesting as their discussions on professional and business interests were expectedly intense. But behind the façade of comradeship it was obvious that there were benign “political differences” which were often maturely handled, except occasionally when it obviously threatened the fabrics of the existing camaraderie.

By way of digression, one of such was the perceived truncation of the interest of Mohammed Kari to lead the NIA as Chairman. Being the biggest member of the Association that also contributed about 15 per cent of the annual subscription base of the Association, it was expected that Kari wanting to take the shot at the Chairmanship of the Association was not unexpected.

However, politics as it is often said is not mathematics! The permutation did not go for Kari as expectedly. Part of the reasons we distilled was that the young Kari was quite vocal and the elders were not comfortable with what they believed was his radical disposition towards them and the status quo. As the election approached, Bolaji Banjo (BOB) was believed to have been propped to contest against Kari for the position.

On the reason of company’s strength, Banjo who as the MD of the nano Fire Equity and General Insurance Company (FEGICO) was no match for Kari who sat over the octopus, called NICON Insurance Corporation as MD. Alas, Kari could only muster a more than a little support from a coterie of his friendship on the Board. BOB clinched the majority votes to become Chairman after Adetayo.A Akintunde. Expectedly, Kari was not a person to take the issue as it came, he immediately convoked a press conference where he denounced the election, noting that it had been manipulated by some members who disliked him on on the Board.

As a further reaction, Kari withdrew his membership of the Association as well as persuaded Niger Insurance,NICON’s subsidiary, under Bala Zakarya’u to do same vide a terse letter to the Association. These developments posed existential challenge for the NIA, going by the fact that the two companies contributed a good chunk of the Associations subscription base. It took the selfless sacrifice of some members to buffer the financial loss of the Association. It was cheering that after many years of being out of the fold, both companies returned to the membership of the Association.

While the Association battled the threatening implosion, what appeared to be another shattering news started to smolder, and it was that the funds accumulated by the Association for years under the Uninsured Motor Vehicle Accident victims, running to millions of naira, should be transferred to the newly formed National Insurance Commission (NAICOM).

Prior to the NAICOM Decree of 1997, the NIA, taking a cue from the Association of British Insurers(ABI) had conceived the idea of levying members yearly under the uninsured motor vehicle accident victims to serve as a buffer as well as image spin for the industry in the event of any unfortunate accident involving uninsured motor vehicles. The new NAICOM Act posited that the fund should henceforth be kept in custody of NAICOM. Apparently, due to the no love lost between NAICOM Commissioner under the ebullient Chief Oladipupo Bailey and NIA under Chief Funmi Adeyemi, Bailey insisted the money must be transferred to NAICOM for which the Association declined on the ground that the position of the law could not be enforced retroactively.

The image of the industry suffered greatly in the eyes of the public as the two instititions turned to pages of the newspapers daily to ventilate their differing opinions.
Eventually, the Governing Board of the NIA urgently convened a meeting where it was decided unanimously that the money should be expended to purchase a property as secretariat for the Association.

The ingenious idea prodded Chief Adeyemi’s committee to locate the residence of Shehu Musa from whom the building was purchased. In less than a week the secretariat staff, of which I was one, moved enmass to the new secretariat, with many members heaving a sigh of relive from the challenges which they were already having at the NICON House, due to lingering intransigence between NICON and the Association. As the PR practitioner in the eyes of the storm it took time for me to understand reason for the push that I had from my boss who insisted I must get the then Governor of Lagos State, Colonel Buba Marwa to commission the building.

Eventually we literally made a “noise” louder than the building on the D-day as the entire stretch of Saka Tinubu street was locked down. Unfortunately, Marwa, despite strident assurance to be physically present, could not make it. He had received a summon to be in Abuja. He deputed the then Commissioner for Finance, one Mr Wale Edun to stand in his stead.

As events later unfolded my boss told me that the NIA had to go that stretch because of the litigation which NAICOM was contemplating on the building. Adeyemi, being a seasoned lawyer had reasoned that the commissioning of the office by another top government official would nullify any alleged commission of illegality by the NIA with the use of the fund for the building..
Reasons eventually prevailed on both sides and NAICOM’s angst simmered over the issue on the day Chief Bailey visited the office.

The mild drama that ensued that day is worth relating. Chief Adeyemi and Chairman, Banjo, had gone to welcome Chief Bailey to the new office. Seemingly ignoring the protocols, Chief Bailey did not pretend about his dislike for what NIA did. He blurted out “you guys bought this house willy- nilly and in defiance to the law? We shall see!.” Gladly, nothing happened after wards, as the office remained the official abode of the Association till it was demolished to give way to the new one being commissioned.

While congratulating the present leadership, Council, and Secretariat staff of the NIA for this landmark feat, it should be noted that the building as it is today stands as a testimonial of diligence and tenacity of purpose of those who conceived the initial idea of purchasing a building, albeit based on the circumstances of the time.

Gladly, some of them are still alive and kicking, while some others have regretfully exited the world. It is hoped that they would all be given their deserved place in the “hall of fame” in the building to immortalize their efforts of giving not only the NIA, but the entire insurance industry such a befitting legacy of honour, dignity and good image.

Tope Adaramola is the Executive Secretary/ CEO, The Nigerian Council of Registered Insurance Brokers, NCRIB.

Patoma Admin by — May 5, 2022 in Insurance 0
 Abuja-Kaduna train to resumes soon – NRC

By Favour Nnabugwu

 

 

The Nigerian Railway Corporation, NRC, has announced that it has successfully completed work on the damaged portion of the Abuja-Kaduna rail track following the terrorists’ attack on March 28 which grounded service on the route.

The attack led to the death of nine persons and the abduction of over 140) passeengers including an aged woman, a nursing mother, among others.

In a release made available to newsmen, NRC said track access between the two cities has been achieved even as it failed to provide update on the 141 persons still in the custody of their abductors.

Signed by Niyi Alli on behalf of the corporation’s Managing Director, Fidet Okhiria, the statement read: “The connection of the Abuja-Kaduna Train Service, AKTS line has been achieved.

This implies that the major track components (concrete sleepers and rails) have been completely laid. The south end of the tracks (which was destroyed by the explosion) has been successfully joined with the north end. Track access between Abuja and Kaduna is now restored.

“The technical team continue with other track works including ballasting, temping, fastening of accessories (clips, bolts and nuts) and welding.

“Loco 2502 which was involved in the accident (though not damaged) and trapped at the Rigasa end due to lack of route access has now crossed to the Idu end and taken to the workshop for proper examination and routine maintenance.

“As we have mentioned in our earlier releases, the Abuja – Kaduna Train Service will resume soon with additional security measures put in place

“Passengers will be required to provide their NIN registration for verification prior to purchasing train tickets. This is for improved passenger profiling and safety on-board.

“The corporation is committed to the safety of all our passengers and staff on board the ill-fated Ak9 train service. We will continue to collaborate with security agencies to ensure all persons being held are rescued unhurt and reunited with their families, soonest.

“We continue to pray for the reposed of the souls of those who lost their lives in the unfortunate attack. We also pray that Almighty God continue to grant the families of those who lost loved ones, the fortitude to bear the irreparable lost. We equally pray for the full recovery of those injured in the ill-fated AK9 train service of 28h March, 2022

“In compliance with Mr. President’s directive, we encourage anyone stili looking for a loved one or for update to please contact the following numbers in our situation room:
Mrs. Lola on 08023310145 and Mr. Mahmood on 07038356015

“The NRC continues to express its profound gratitude to the security agencies for the continued support, especially for the security cover availed our officials and staff at the incident site.

“As customary, the corporation will continue to update the general public of latest developments.”

Patoma Admin by — May 5, 2022 in Transportation 0
NERC confirms electricity tariff hike across 10 DisCos

By Favour Nnabugwu

 

The Nigerian Electricity Regulatory Commission (NERC) yesterday confirmed adjustments to electricity tariff regime across ten electricity distribution companies with increases ranging from 5-12 percent.

The adjustment to the Multi-Year Tariff Order (MYTO) took effect from February 1, 2022, according the regulations issued by the Commission and posted on its official website on Wednesday night.

Justifying the rise in tariff, NERC stated that it was to “ensure that tariffs payable by consumers are commensurate with and aligned with the quality and availability of power supply committed to customer clusters” by the DisCos.

It also added that the adjustment would ensure that prices charged by the DisCos “are fair to customers” and are sufficient to allow the DisCos “to follow recover the efficient cost of operation including a reasonable return on the capital invested in the business”.

NERC also stated that the adjustment would also “ensure sustained improvement in reliability of supply in line with the DisCos capital expenditure (CAPEX) proposals and performance in improvement plan”.

Abuja DisCo, non-maximum demand (Non-MD) customers in Band A (minimum of 20 hours supply per day) would be billed 8 percent higher while maximum demand (MD) customers in the same band would be charged 1.04 percent lower.

For Non-MD in Band B (minimum of 16hrs per day), tariff rose by 8.8 percent while it remained the same for MD customers in Band B. For Non-MD customers in Band C (minimum of 12hrs per day), tariff rose by 11 percent while MD customers would pay 7 percent more.

Also, for Non-MD customers in Band D (minimum of 8hrs per day), tariff rose by 11.7 percent while those on MD would pay 6.8 percent more. For Non-MD customers in Band E (minimum of 4hrs per day), tariff rose by 12 percent while MD customers in the band would have a reduced tariff of 5.3 percent.

For the poorest consumers (Lifeline: R1) with energy consumption of not more than 50kWh per month, tariff remained frozen at N4.

With the adjustment, NERC has ordered the DisCos to pay 100 percent of invoices issued to them by the Nigerian Bulk Electricity Trading Plc (NBET) and the Market Operator (MO).

The Commission warned that DisCos shall “be liable to relevant penalties/sanctions for failure to meet the minimum remittance requirement in any payment circle under the terms of respective contracts with NBET, MO and the provisions of the Market Rules and Supplementary TEM (Transition Electricity Market) Order”.

The Yola Electricity Distribution Company which was recently sold to a new owners was not captured in the adjustment.

Patoma Admin by — May 5, 2022 in Others 0
New president of stockbrokers is Oluwole Adeosun

By Favour Nnabugwu

 

The Chartered Institute of Stockbrokers ( CIS) has announced a core finance professional, Mr Oluwole Adeosun as its new President and Chairman of the Governing Council.

With his election, at the Institute’s hybrid Annual General Meeting (AGM) today, Adeosun, the Institute’s former 1st Vice succeeded the immediate past President, Mr Olatunde Amolegbe whose tenure was characterized by many laudable achievements

By his election, Adeosun shall be formerly decorated with the paraphernalia of office in a high profile event called investiture at a later date.

Under the new change of baton, the Institute’s 2nd Vice President, Mr Oluropo Dada has emerged the 1st Vice President .
Adeosun, a Fellow of the Institute and multinational professional, brings on board over two decades of robust experience in the financial market.

A product of the prestigious Loyola College, Ibadan, he holds a B.Sc. (Hons) in Business Administration from the University of Ilorin in 1986 and capped it with Master’s Degree in Business Administration (MBA) and specialises in Finance and Banking from University of Lagos in 1993. Adeosun trained at Coopers and Lybrand (Chartered Accountants) now PricewaterhouseCoopers and qualified as a Chartered Accountant in May 1991. He later qualified as a Chartered Stockbroker and Banker.

He has been a long-standing member of the Governing Council of the Chartered Institute of Stockbrokers since April 2013 and has served as the Institute’s First Vice President in 2020-2022 and Second Vice President from 2018 to 2020. He also served as a member of the Finance and General-Purpose Committee of the Chartered Institute of Bankers of Nigeria and its Investment Subcommittee.

Among the major highlights of the meeting was the re-election of Mrs Fiona Ehimie and Mr Adeyemi Aina to the Institute’s Governing Council and election of Mr Ayodeji Ebo and Mrs Elile Olutimayin to the Board.

He is the Managing Director and Chief Executive Officer of Chartwell Securities Limited and a distinguished Fellow of many major professional Institutes in Nigeria’s financial services sector,including, Institute of Chartered Accountants of Nigeria (ICAN), Chartered Institute of Bankers of Nigeria (CIBN) and Chartered Institute of Taxation of Nigeria (CITN) amongst others.

In a recent interview, Amolegbe, the Institute’s immediate past President, expressed optimism that he had left behind a team of top notch professionals that would further advance its growth and development.

“ My Priority has always been to enhance the institute’s brand positioning by increasing its visibility via advocacy while putting the members’ welfare on the front burner.” Said Amolegbe.

Senior Stockbrokers commended the Principal Officers and Management of the Institute for its visibility and and returning it to profitability despite the inclement operating environment. Among them were Mrs Elizabeth Ebi, Group Managing Director of Futureview Group, Mr Oladipo Aina and Mr Oluwaseyi Abe, both past presidents.

Patoma Admin by — May 5, 2022 in Banking & Finance 0
Swiss Re reports Q1 loss on catastrophes, COVID and Ukraine conflict

By Favour Nnabugwu

 

 

Global reinsurance firm Swiss Re has reported a net loss of $248 million for the first-quarter of 2022, as $524 million of natural catastrophe claims, $515 million of claims from the COVID-19 pandemic and reserving for potential losses from the war between Russia and Ukraine dented its performance for the start of the year.

swiss-re-building-imageAs ever, the scale of Swiss Re’s underwriting operation means it is exposed to the largest events that affect the world and the loss is unsurprising, but analysts have so far this morning said that performance of the reinsurance firm was still better than anticipated during the quarter.

Overall, Swiss Re’s net loss of $248 million meant a return on equity of –4.6% for the first quarter of 2022, which compares to the prior year periods profit of $333 million and an ROE of 5.2%.

The reinsurance firm dealt with significant claims and losses during the period, from $524 million of catastrophe losses across its property and casualty businesses, COVID-19 mortality related claims of $515 million and booking a $283 million reserve for possible losses from the conflict in Ukraine.

Swiss Re has continued to deploy more of its resources into underwriting, with net premiums earned and fee income increasing by 4.0% compared with the prior-year period, to reach $10.6 billion for Q1 2022.

Christian Mumenthaler, Swiss Re’s Group Chief Executive Officer, commented on the results, “The first quarter turned out to be a challenging one. Russia’s invasion of Ukraine came as a shock, and our thoughts are with everyone impacted. While the situation remains highly uncertain and we do not believe we have an outsized exposure, we decided to take a proactive and cautious approach to establishing reserves for potential impacts from the war. Despite this and other headwinds in the quarter, Swiss Re’s property and casualty businesses delivered robust underwriting results, and we remain focused on delivering on our financial targets for the year.”

Swiss Re’s Group Chief Financial Officer John Dacey added, “While the first quarter was impacted by negative equity mark-to-market movements, the recurring income yield remained stable at 2.1%. We expect our investment results to benefit from rising interest rates in the medium term. At the same time, the Group maintained its very strong capital position, enabling us to capture profitable growth opportunities in a supportive pricing environment.”

Swiss Re’s Property & Casualty Reinsurance (P&C Re) division reported positive net income of $85 million on the back of a combined ratio of 99.3%, which on a normalised basis comes out at just 96.9%.

That compares to $481 million of profit in Q1 2021, as the 2022 first-quarter result has been dented by catastrophes, lower investment performance and setting of $154 million of reserves related to the war in Ukraine.

P&C Re’s large natural catastrophe claims were $449 million, higher than the prior years $316 million, and mainly related to European windstorms in February and the Australia floods.

It’s interesting that despite last year having seen the massive loss of winter storm Uri, Swiss Re’s more globally diversified approach and position in the United States, meant this years retained catastrophe losses were higher.

P&C reinsurance premiums earned rose by 5.8% to $5.3 billion, driven by continued price improvements and a focus on active portfolio management, partially offset by adverse foreign exchange developments.

The P&C reinsurance division has continued to grow, with premium growth of 15% reported for the key April reinsurance renewals, amid a market where prices are rising.

At this stage of the year, Swiss Re said that its P&C Re division has grown its treaty premium volumes by 8%, with price increases of 3%.

Persistently high mortality in the United States due to the COVID-19 pandemic drove a life and health net loss of $230 million for the quarter.

$501 million of COVID-19 claims dented this division, but positively Swiss Re now says “With excess mortality in the US trending down significantly, L&H Re continues to target a net income of approximately USD 300 million for 2022.”

Corporate Solutions, the commercial risk underwriting unit of Swiss Re, took the rest of the catastrophe and Ukraine related impacts, with a further $129 million of reserves related to the Ukraine war set for this unit.

In addition, the CorSo unit reported $75 million of catastrophe losses, largely related to the flooding in Australia and the European winter storms in February.

However, despite this, Corporate Solutions delivered profit of $81 million for the quarter on a combined ratio of 95.2%, as results from this division continue to improve.

CEO Mumenthaler looked ahead, “While the first quarter of 2022 presented significant headwinds for the re/insurance industry and Swiss Re, we are confident in the Group’s ability to navigate the challenges. Thanks to the actions we have taken over the past years, our businesses have all the necessary levers in place to drive profitability and deliver against our financial targets for 2022

Patoma Admin by — May 5, 2022 in Insurance 0
Joyce Ojemudia bags UN POLAC Honour

By Favour Nnabugwu

 

 

The Managing Director of African Alliance Insurance PLC, Mrs Joyce Ojemudia, has been honoured by the United Nations Positive Livelihood and Awards Centre (UN POLAC Foundation).

Ojemudis recieved the award as a Distinguished Woman of Peace and Honour with the conferment of its prestigious Queen Amina Heroine Award.

The Distinguished Woman of Peace and Honour Awards (DWOPHA) generally honours the inspiring work of women whose encouragement, leadership and commitment to peace stand out as beacons of strength and hope while the Queen Amina Heroine category celebrates women who have exhibited uncommon bravery and strength in the face of adversity to achieve success.

A statement released by Bankole Banjo, Band, Media and Communications Manager, African Alliance Insurance PLC that Joyce Ojemudia is an accomplished insurance professional and astute manager of resources with over twenty years of experience in insurance sales, business development, risk management, claims administration and reinsurance.

According to the Letter of Award signed by the Director-General, UN-POLAC, Prof Halo B. Eton, “United Nations POLAC Foundation was established as an international autonomous institution following the UN General Assembly with its aim and objective to select high profile individuals across the six geopolitical regions in Nigeria as Volunteers to propagate peace building in Nigeria and assist in the implementation of UNDP programmes initiatives.”

Going further, the letter informed Ojemudia that “as a Woman of Peace, you may be called upon for peace making, conflict resolution and other activities that encourages peace and positive living in line with international best practices.

She is an alumnus of the prestigious Lagos Business School (SMP 40) and the University of Lagos where she had her first and second degrees in Insurance and Risk Management respectively. Indeed in 2021, she was recognised by Business Day Media as one of 30 Notable Alumni of the prestigious Lagos Business School.

Ojemudis is also a Fellow of the National Institute of Marketing of Nigeria, an Associate of both the Chartered Insurance Institute of Nigeria and the Institute of Chartered Economists of Nigeria.
In 2020, she was elected the President of Professional Insurance Ladies Association (PILA), the elite body of professional women in Insurance on the continent.

Under her watch, the professional association successfully hosted her first ever Africa-wide side event at the continental African Insurance Organisation (AIO) Conference during its 47th edition held in Lagos.

Few months after her ascension to the PILA top position, she was appointed the Managing Director/Chief Executive Officer of African Alliance Insurance PLC, Nigeria’s foremost indigenously-owned life insurer with some 50,000 active policyholders spanning over three generations.

As head honcho at the legacy insurer, Ojemudia had instituted a virile cost saving strategy that is driving a top to bottom change within the organization while aggressively growing her market share by making viable and humane life insurance accessible to more Nigerians.

Recall that last year, her shrewd management style enabled African Alliance Insurance PLC to clear years-old legacy indebtedness to the Pension Transitional Arrangement Directorate (PTAD); a move which industry watchers consider ‘bold and groundbreaking’ in all ramifications.

 

Patoma Admin by — May 5, 2022 in Insurance 0
Prestige Assurance, Mutual Benefits Assurance rank among 75 fastest growing companies by FT 2022

By Favour Nnabugwu
Two of the country insurance operators has been ranked among the 75 Africa’s Fastest-Growing Companies by Financial Times (FT) rating of which 21 companies are Nigerian own companies.
Prestige Assurance Co. Plc and Mutual Benefits Assurance Plc are the only two companies mentioned in the ranking for category 2022.
Having released its inaugural annual ranking of Africa’s Fastest Growing Companies, Financial Times’ report provides a solid glimpse at the African corporate landscape, with technology, fintech and support-service businesses adapting to a radically altered environment.
Following the rankings, South Africa had the most companies followed by Nigeria, Kenya and Egypt. The companies were ranked by their absolute growth rate, compound annual growth rate (CAGR) and revenue, showing 2017 and 2020 revenues in millions
Prestige Assurance is an insurance company with absolute growth rate of 84.0% and CAGR of 22.5 percent. The company made $19.5 million in 2020, compared to $12.5 million in 2017
Mutual Benefits Assurance Plc. The insurance company has an absolute growth rate of 45.5 percent and CAGR of 13.3 percent In 2020, it made revenue of $54.1 million, compared to $43.7 million in 2017.
The inaugural FT annual ranking of Africa’s Fastest Growing Companies provides a snapshot of corporate landscape in a continent where technology, fintech and support-service businesses have had to adapt to a radically altered environment.
Patoma Admin by — May 5, 2022 in Insurance 0