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Air Peace boss fulfills cash promise, gives Super Eagles N20m

By Favour Nnabugwu

 

 

Chairman of Air Peace airline, Barrister Allen Onyema fulfilled his promise to the Super Eagles by giving them the sum of N20 million for winning their match against the Blue Sharks of Cape Verde on Tuesday.

This is just as he charged the Eagles to keep up their winning streak and continue uniting Nigeria with their pitch exploit.

The Eagles, who flew to and from Cape Verde in one of Air Peace’s ultramodern Embraer 195-E2 aircraft, received the cheque upon arrival yesterday at the Murtala Muhammed International Airport, Lagos.

Recalled the Air Peace chairman made a promise to the Eagles on their way to Cape Verde for the match that ended 2-1 in favour of Nigeria.

Onyema while congratulating the players on the second win in their World Cup qualifiers campaign, charged them to also emerge victorious in their subsequent games.

He expressed delight that the Eagles did not disappoint the nation, adding that ‘we believe in your capabilities and have faith in you”.

“I am happy that you fulfilled your promise to the nation, knowing that you carry the aspirations of Nigerians on your young shoulders. When you were one-zero down, everybody was panicking. Everybody was praying. And you responded like lions and won the match”.

“There were celebrations all over the country- North, South, East and West”, he said.

The nationalist implored the team to keep up the winning streak and continue uniting Nigerians with their pitch exploits. He added that Air Peace believes in the team and will continue to support them to take Nigerian football to greater heights.

Responding, Eagles Captain, Ahmed Musa, who said he enjoyed flying the brand new E195-E2 aircraft, thanked Allen Onyema for his kind gestures towards the team and stressed that Onyema’s unity speech really inspired the players.

It can be recalled that Onyema had urged the players before they departed for Cape Verde a couple of days ago, to use their football strides to unite Nigerians, emphasising the unifying power of sports, while also promising them cash rewards.

Patoma Admin by — September 8, 2021 in Aviation 0
PILA calls on women for Africa economic recovery

By Favour Nnabugwu

 

 

The President of the Professional Insurance Ladies Association (PILA), Mrs. Joyce Ojemudia, has called on African insurance women to come together in order to actualise their dreams for Africa’s economic recovery.

She wished that women more strategic positions in governance, noting that the hope of the continent would only be brighter if the female gender is factor into consideration of for strategic positions in governance and policy making across the continent.

Ojemudia who is also the Managing Director of African Alliance Insurance, was speaking at the 2021 Women’s Forum of the African Insurance Organization (AIO) Conference held in Lagos yesterday, harped on the idea behind PILA Africa Initiative and the need for women to come together.

According the idea is to have an umbrella body of female insurance professionals and practitioners in Africa under which members will glean together to harness the rich potentials God endowed us with to ensure women take their rightful place in our various countries and Africa at large.

“Part of that gleaning comes in the form of professional networking, knowledge sharing and mentorship which is why the Theme for this Workshop; an offshoot of the 47th AIO Conference; “Women Collaborating For Africa’s Economic Recovery” is very apt. Statistics show that women constitute a significant chunk of the demography of African continent with population of approximately 691m.

“Out of this population, a critical chunk are professionals, including those operating in the Insurance Industry. From these records, coupled with the renewed acceleration of the number of women taking up careers in the professions, the hope of the continent would only be brighter if the female  gender is factor into consideration of for strategic positions in governance and policy making across the continent.

“PILA Africa is an initiative of PILA Nigeria, which has snowballed into many other African countries establishing similar associations and a lot more at the verge of concluding their modalities.

‘It is expected that many other African countries here represented, will be encouraged to establish their local associations.  PILA Nigeria is ever ready to partner with you in this regard,” she said.

While appreciating the past Chairperson of the PILA Africa Organising Committee Dr Mrs Tonia Smart for her great achievements in this regard, she commended the immediate past Secretary General of the AIO, Ms Prisca Soares, whom she said performed her duties meritoriously over the years.

Soares who was described by PILA President as Pillar of the insurance industry not just in Nigeria but also in  Africa for her strides was officially honoured.at this event.

Speaking on the theme “Women Collaborating For Africa’s Economic Recovery,” Dr. Abiba Zakariah, listed how women can collaborate to contribute to Africa economy to include the unification of the individual country associations; uniting with others female bodies in various countries; Collaborating with global female associations and focusing on strategic directions of meeting agendas.

On how women can take control of their narrative, she emphasized the need for women to strategize, ensure female child.education as well as women participation in politics and policy formulation.

She also listed the benefits of women Collaboration to include economic growth; achieving the 2030 agenda for sustainable development; achieving the gender parity realization of women rights and gender equality amongst others.

Patoma Admin by — September 8, 2021 in Insurance 0
Global reinsurance capital rose 4% to $688bn in H1 2021

By admin

 

 

In its latest global reinsurance market report, Willis Re says reinsurers retained more net income than usual, returning less than half to shareholders, to drive growth in the current stronger rating environment.

Willis Re said returns on equity (ROEs) had improved from negative territory last year, but underlying ROEs are still below the cost of capital.

Premium growth at reinsurance firms was 15 percent higher in H1 2021, boosted by price increases at both primary and reinsurance level, as well as higher exposure as the global economy rebounds, says Willis Re.

“The 15 percent growth rate is the strongest we have seen at the half-year stage since we began producing this analysis in 2014,” it adds.

Global reinsurers recorded a half-year combined ratio of 94.1percent, compared to 104.5 percent in the first half of 2020, when Covid-19 hit. Willis Re says the combined ratio “closely matches” half-years for 2016 to 2019 and was helped by higher levels of reserve releases.

James Kent, global CEO at Willis Re, said: “The industry has endured several years of below-par performance, capped by the calamitous experience of Covid-19. Now the remedial work reinsurers have undertaken over the past several years is bearing fruit.”

Patoma Admin by — September 8, 2021 in Insurance 0
Pension assets under management increased by 13% YoY to N12.78trn in July 2021

By Favour Nnabugwu

National Pension Commission, PenCom said assets under management (AUM) of the regulated pension industry increased by 13.0 percent y/y to NGN12.78trn (USD31.1bn) at end-July and by 1.0 percent.

FGN debt securities represented 64.2 percent of the total at end-July. When we include corporate and state government issuance, we find fixed-income exposure equivalent to 72.4 percent of the industry’s AUM. This is a highly skewed allocation of assets in the EM universe, for which some explanations are warranted.

The share of domestic equities rose from 4.6 perceny to 6.7 percent of AUM over the twelve months, and members’ holdings by 65 percent to NGN862bn. Over the same period the all-share index (ASI) increased by 56 percent indicating a small underlying shift by the institutions into domestic equities. It may qualify as distant history in some eyes, but we should recall the beating the PFAs took from the stock market crash of 2008/09.

Another trend to report that is not strictly fixed income is the steady rise over several years in holdings of money market securities. The share of AUM has increased to 16.5 percent in July from 15.8 percent twelve months earlier.

These are mostly bank placements. We suspect that the pressure from the regulator on DMBs to meet its tighter loans-to-deposit ratio requirements has created good opportunities for the nimbler domestic institution.

The holdings of FGN paper are predominantly the bonds, which represented 59.9 percent of total AUM. Investors have enjoyed a very healthy run since the start of the year following the anomalous Q4 ’20.

The driver in our view has been the huge deficit financing requirement of NGN5.60trn in the 2021 budget (before the passage of the supplementary by the National Assembly before the summer recess).

The Debt Management Office (DMO) has raised NGN1.92trn from bond auctions in eight months this year (including non-competitive bids). It is on schedule to raise its initial domestic funding target for the year of NGN2.34trn, an increase of more than 40% on its collection from auctions in 2020.

The average value of a retirement savings account (RSA) at end-July was NGN1.08m, marginally higher than the previous month.

Just NGN177m was invested at end-July in the newest RSA fund (no V), which has been created for micro pensions for the self-employed and SMEs.

Patoma Admin by — September 8, 2021 in Pension 0
NRC generates N1.08 bn from passengers in Q2’21- NBS

By Favour Nnabugwu

 

Nigerian Railway Corporation, NRC, generated N1.08 billion revenue from passengers in the second quarter of the year 2021 (Q2’21`).

This represents a 237 percent year-on year (YoY) rise in revenue when compared with N320.3 million generated in Q2’20.

The National Bureau of Statistics, NBS, disclosed this today in its Railway Transportation Data Report for Q2’21.

The data also showed that revenue generated from cargo rose YoY by 8.0 percent to N71.6 million in Q2’21 from N66.3 million in Q2’20.

The report stated: “Revenue generated from passengers in Q2’ 21 was put at N1.08 billion as against N892.47 million in Q1’21.

“Similarly, revenue generated from goods/cargo in Q2 2021 was put at N71,555,762 as against N26,195,160 in Q1 2021.

“The rail transportation data for Q2’21 reflected that a total of 565,385 passengers travelled via the rail system in Q2 2021 as against 108,238 passenger recorded in Q2’ 20 and 424,460 in Q1’21 representing 422 percent growth YoY and 33.20 percent QoQ respectively.

“Similarly, a total of 42,782 tons of volume of goods/cargo travelled via the rail system in Q2’21 as against 8,691 recorded in Q2’ 20 and 10,511 in Q1’21 representing 392 per cent growth YoY and 307 per cent QoQ respectively.”

Patoma Admin by — September 7, 2021 in Transportation 0
PILA honours Prisca Soares for representing insurance women well

By Favour Nnabugwu

 

Ms Prisca Maria Gbemisola Soares today recieved an Award from the Professional Insurance Ladies Association (PILA) in recognition of her outstanding contributions in promoting the affairs of the women in the insurance industry

Presentiing the Award to Ms Soares, Dr Tonia Smart at the PILA event while Mrs Joyce Ojemudia, President of the insurance women association watched in admiration

Ms Soares has distinguished herself in all  spheres of assignments and her track records speaks for her.

Soares is Chairman Management Board of Seyi gambo Leadership Academy. .She attended St. Mary’s Convent School, Lagos from 1957-1964 .Queen’s College Yaba from 1965-1971, where she obtained her School Certificate and Higher School Certificate. .Between January-September, 1972, she got work experience in broadcasting at FRCN & Voice of Nigeria and in teaching at Yaba Academy, Abule Ijesha, Lagos.

.She is a French and German (Combined Honours) graduate of the University of Ibadan, and an Associate of the Chartered Insurance Institute (ACII) London. She did her NYSC in Kaduna State in 1976/77. .In 1977 she joined National Insurance Corporation of Nigeria (now NICON Insurance) as the first Graduate Trainee and rose through the ranks to become the first female Managing Director in 2000.

Following her retirement from NICON Insurance in 2006, Ms. Soares was appointed Secretary-General of the African Insurance Organisation (AIO) in 2007 – the first woman to occupy the position to 2019r. She was retained as Consultant from 2019-2020.

Prisca Soares has served the Insurance industry in various capacities, both at home and abroad such as Chairman, Council of Bureaux of ECOWAS Brown Card Insurance Scheme 2004-2005, Executive Committee member of the AIO 2000 – 2006 and Executive Committee member of the Federation of Afro Asian Insurers and Re-insurers (FAIR) 2000 – 2006. She has served on the Boards of Directors of various companies including NAL Bank (now Sterling Bank), Continental Reinsurance Co. Ltd. and Le Meridien Hotel, Abuja and was Chairman, Niger Insurance Plc (first female director).

Patoma Admin by — September 7, 2021 in Insurance 0
AfCFTA great opportunity for African insurers, AIO

By Favour Nnabugwu

 

 

The African Continental Free Trade Area” (AfCFTA), is said to create a single market covering more than 1.2 billion people, with a current gross domestic product of more than US$ 2.5 trillion.

The free flow of goods, services, people and capital under the AfCFTA, according African Insurance Organisation which launch the AFCFTA today, is expected to boost intra-African trade and strengthen the competitiveness of African companies.

The African insurance sector is optimistic about the AfCFTA but wishes to see regulatory integration. As in the past, this year’s 6th annual edition of the African Insurance Pulse, conducted by Faber Consulting on behalf of the AIO, is based on careful market research and in-depth interviews with nearly 30 insurers, reinsurers, intermediaries, regulators and policymakers operating in Africa.

Secretary-General of AIO, Jean Baptiste Ntukamazina said, “The AfCFTA has significant potential toserve as a catalyst for transforming the African economy. For the AfCFTA to succeed, dynamic pan-African trade is required, which can only take root in a stable socio-political environment.

The African binsurance sector is ideally positioned to provide security, economic and financial stability and enablethe development of societies and economies in Africa through its risk knowledge and risk transfersolutions. However, to play this important role, African insurers need integration or even harmonisation of insurance regulations.

“The service sector is by far the largest contributor to the continent’s GDP growthIn Africa, the service sector (including the insurance sector) made the largest contribution to GDP, with 53 percent in 2020.

“The relevance of the services sector is even more significant, as the wide spread informal sector is not included in most statistics. The African Union expects an increase in exported services and further growth in industries that are heavily dependent on services, such as manufacturing and agriculture.

Liberalisation of the service sector is likely to be driven by the private sector,especially financial institutions, which will play an essential role in shaping policy. Insurance growth in Africa has been driven by economic growth The maturity of the insurance market is low in most African countries.

Insurance penetration is expected to increase in African markets where insurance growth has been accompanied by structural reforms, such as market liberalisation, compulsory insurance enforcement, wider distribution, public-private partnerships, and a regulatory system promoting innovation and market access.

The trend towards tighter capital requirements for insurance companies to ensure their solvency will establish stronger companies and promote job creation and build capacity in the industry. These reforms are crucial to increase the security and performance of the continent’s insurers.

Regional expansion of re/insurance business lags behind its potential due to trade barriers While intra-African trade agreements have gradually seen a substantial reduction in tariffs on goods, non-tariff barriers, such as infrastructure gaps, the low quality of trade logistics, access to credit, and human capital, remain high for most African countries.

Despite these efforts, the intra-African trade remains below its potential. This is also true for the insurance sector, according to the executivesinterviewed. Most insurers operate in just one or two markets.

Even Africa’s reinsurers, acting as ashock absorber for cedants and economies, are challenged to diversify their portfolio because of many barriers and constraints in African insurance markets.

Ahead of the implementation of the AfCFTA, ageographic expansion to build scale is the top priority for insurers and reinsurers alike.  Group Managing Director and CEO, Africa Re, Dr. Corneille Karekezi commented: “Today’s traderestrictions within Africa are higher than those with the rest of the world. While intra-regional exportsamount to roughly 50 percent of trade in Asia and 69 perceny in Europe, in Africa only 17 percent of exports remainwithin the continent”.

Karekezibfurther stated, “Therefore, it comes as no surprise that large hopes rest on the AfCFTA”

According to the UN Economic Commission for Africa (ECA), intra-African trade is expected toexperience a boost of 52percent, encouraging manufacturers and service providers, including re/insurers, toleverage economies of scale”

.”Survey respondents are optimistic about the AfCFTA but hope for an integration of insuranceregulationRe/insurance players have much to gain from a continent-wide single market. Once fullyimplemented,the eight strategic objectives of the AfCFTA will benefit re/insurance companies in Africa directly orindirectly.

As a result, the expectations of the various insurance stakeholders for the AfCFTA are high. Many believe that the insurance pie will grow with the liberalised market access, facilitating anexpansion beyond their current market range. In particular, re/insurers operating in one or a fewmarkets see this as a unique opportunity to grow and diversify their risk portfolio.

When asked about the top three challenges to a successful implementation of the AfCFTA,respondents most frequently cited increased competitiveness, indicating that not all countries, sectorsand economic actors are equally prepared to benefit from the implementation of a common market.

Another top concern of the interviewed market participants is that insurance regulation differs widely across the continent and often poses hurdles to market access. Therefore, almost all respondents, including regulators and policymakers, agree that the current regulatory differences present a major obstacle to integrating African re/insurance markets.

Aboutthe African Insurance Organisation Established in 1972 in Mauritius, the African Insurance Organisation (AIO) is a non-governmental organisation recognised by many African governments. Following the headquarters’ agreement withthe Government of Cameroon, the Permanent Secretariat of the AIO was set up in Douala.

The AIO aims to develop a healthy insurance and reinsurance industry in Africa and promote inter-African co-operation in insurance.

The AIO has currently 356 members from 48 countries in Africa and 16international associate members from overseas.

Patoma Admin by — September 7, 2021 in Insurance 0
Climate risk to drive property premiums and cat losses much higher, Swiss Re

By admin

 

 

Global reinsurance company Swiss Re expects that property and casualty (P&C) insurance premiums will grow considerably over the next two decades, with a near doubling expected. Climate risk will be a major driver of this, resulting in a significant boost to new property P&C premiums written, but also to expected insured natural catastrophe losses.

Overall, the P&C insurance risk pool is expected to increase by around two times, to roughly US $4.3 trillion of premiums by 2040.

But, of note to reinsurance and insurance-linked securities (ILS) markets, the global P&C risk pool is expected to become riskier and more complex at the same time, Swiss Re explained in its latest sigma report that was released today.

Emerging markets will rise fastest, resulting in a gain in share, from 20% of P&C risk pool premiums in 2020 to 33 percent in 2040.

Climate change and climate risk is going to be one of the biggest drivers of insured property premiums in the P&C space, with property expected to be one of the biggest drivers of growth in global insurance and reinsurance markets over the coming years.

Climate change and climate risk is expected to add $183 billion of new P&C premiums globally by 2040, according to Dr. Jérôme Haegeli, Group Chief Economist of Swiss Re, who was speaking at a launch event for the sigma report today.

Today, some roughly 25 percent of P&C insurance premiums are related to property lines of business, but by 2040 this is expected to rise to 29 percent of the overall P&C risk pool premiums.

That equates to an expectation that property insurance premiums could almost triple by 2040, adding some $1.3tn more in premiums by that stage.

Haegeli said that economic growth is the main driver, explaining about two-thirds of this increase in premiums.

Specifically on the climate risk front, Swiss Re expects the property risk pool to increase in size by 30% to 40% on the back of rising climate exposures.

The result of this is an expectation that insured catastrophe losses will rise significantly, with Swiss Re estimating that weather related insured catastrophe losses will increase by between 30% to 63% in key advanced markets by 2040.

The main drivers are expected to be floods, tropical cyclones and perils like wildfires.

While the increase of up 63% is significant, it is expected to be even bigger for some key insurance and reinsurance markets, with locations like Germany, China, France and UK expected to see a 90% to 120% increase in insured catastrophe losses by 2040.

climate-risk-insured-catastrophe-losses

All of this will translate into significant opportunity for those able to create and structure relevant insurance and reinsurance products to provide cover to property as climate risks increase.

While there will also be a growing need for risk capital to underpin this, suggesting more opportunity for the reinsurance and insurance-linked securities (ILS) markets.

Swiss Re highlighted the, “Increasing need for reinsurance due to more severe catastrophe losses,” but also highlighted the increasing uncertainty in losses, in particular from so-called secondary perils.

This means risk-adjusted price adequacy is going to be critical as the property premium risk pool is enlarged by climate change related risks.

The P&C insurance and reinsurance industry is going to find its premium base increasingly driven towards more complex risks, in the property and liability space, while lower volatility drivers of the past, such as motor, will be less of a contributor.

Over time, if climate risks continue to escalate, property could become the biggest component of the P&C insurance and reinsurance risk pool, suggesting ongoing need to innovate in provision of efficient risk capital that can support this rapid expansion.

Jerome Haegeli, Swiss Re’s Group Chief Economist, commented “Promoting the conditions for long-term sustainable growth is particularly important in the face of climate change, which poses the biggest long-term threat to the global economy. If we are to build a sustainable insurance system that allows society to manage and absorb future risks, we need to make risks and opportunities quantifiable. Our work is also vital for policy makers with whom we share the aim of making economic growth insurable.”

Gianfranco Lot, Head Globals Reinsurance at Swiss Re, added, “With the global portfolio shifting from lower risk motor insurance to higher risk lines, P&C insurance business will become more volatile. At the same time, risk modelling will become more complex, which will lead to higher capital requirements and an increased demand for reinsurance. In this fundamentally different risk environment, reinsurers will play a crucial role in keeping risks insurable.“

Patoma Admin by — September 6, 2021 in Insurance 0
Faces at opening ceremony of ongoing 47th AIO in Lagos

CAPTION

 

At the ongoing 47th African Insurance Organisation in Lagos

L – Mr Ganiyu Musa, Chairman of Nigerian Insurers Association/ Managing Director of Cornerstone Insurance; Ms Prisca Soares, former Secretary-General of African Insurance Organisation, Commissioner for Insurance) Chief Executive Officer of National Insurance Commission, Naicom, Mr Sunday Olorundare Thomas, Mr Tope Smart, Vice-President of AIO/ Managing Director of NEM Insurance; AIO Secretary-General, Ntukamazina Jean Baptiste and Mrs Ebelechukwu Nwachukwu, Chairman, Local Organising Committee during the opening ceremony in Lagos today

Other insurance professionals in attendance
    Patoma Admin by — September 6, 2021 in Insurance 0
    President Buhari beckons on insurance to grow non-oil sector

    By Favour Nnabugwu

     

     

     

    Nigeria’s President Muhammadu Buhari has beckoned on  Insurance firms in Nigeria to take advantage of ongoing efforts by the Federal Government to grow non-oil sector of the economy

    Speaking virtually at the opening ceremony of the 47th African Insurance Organisation (AIO) Conference and Annual General Assembly, the President said the Insurance sector will play a vital role in the diversification of the economy by bringing “necessary stability, economic sustainability, revenue generation, job creation and financial inclusiveness.

    “There is a great future for the Insurance industry in Africa. We only need to put the right mechanism in place for it to thrive. I assure you that this administration has and will continue to support Insurance growth in Nigeria and Africa at large.

    “I commend the leadership of the AIO for the resilience, foresight and perseverance in ensuring that the African Insurance market strives to meet its expectations in the global market notwithstanding the prevailing challenges,” he said.

    President Buhari said the theme of the conference, “Rebuilding Africa’s Economy: An Insurance Perspective”, was apt and well thought out to respond to the reality of the moment as many governments try to devise ingenious ways to manage their economy in the aftermath of the COVID-19 pandemic.

    “The pandemic has indeed changed many perspectives that have forced leaders across the globe to think hard for remedies.

    “I want to assure you that we in Nigeria are doing everything humanly possible to ensure coordinated approach to the pandemic and reaching out to other African leaders on possible best options to fully revive the African economy in which I strongly believe the Insurance industry has a vital role to play,” he added.

    The President noted that the COVID-19 pandemic presented a global challenge which led to lockdown of many countries, travel restrictions, and issuance of many health protocols, affecting all human, social and economic interactions that made hosting of the Conference impossible in 2020.

    “COVID-19 is still a serious challenge in many countries across the globe. However, adequate protocols have been put in place to curb its spread and vaccination is in progress.

    “We understand as a government and nation the need to frontally tackle some of the disruptions to our social, economic and health occasioned by the pandemic by putting in place sufficient measures that allow the system to function.

    “I once again use this opportunity to commend the Nigerian Insurance industry for identifying with the government through the provision of life insurance set of packages for frontline medical and paramedical personnel in the course of this fight. Your support and solidarity in these times are highly appreciated,” he added.

    President Buhari thanked the Organizing Committee for successfully putting the conference together, adding that the subtopics listed for discussions were germane and critical in helping Nigeria and Africa rebuild.

    “We are aware that the AIO’s Conference and Annual General Meeting is rotated amongst member states in order to provide a forum for exchange of information and strategies on market development while promoting regional knowledge and integration.

    “We received the news of the decision of the Executive Committee of the AIO granting Nigeria the hosting rights of this 47th edition of the AIO Conference with pleasure. As a country, we are confident in our ability to deliver the best conference ever in year 2020 before the outbreak of COVID-19 pandemic,’’ President Buhari affirmed.

    In her remarks, the Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed, said the foresight of the founders of the AIO deserved commendation as it had fostered African integration agenda and how best to collectively address shortcomings.

    The Minister urged the Insurance sector to design their products around the needs of society, especially for low income earners, noting that greater impact on development would only be possible by looking at the African peculiarity.

    The President of AIO, Mrs Delphine Traore, who is also the Chief Operations Officer, Alliance Africa, said the conference was last held in Nigeria in year 2000, assuring that innovation in the sector would help in complementing government efforts in development

    Patoma Admin by — September 6, 2021 in Insurance 0