All Posts in "Insurance"

Universal Insurance Premium Income stands at N4.1bn In H1 2022

By Favour Nnabugwu

 

 

 

Universal Insurance Plc, Nigeria’s foremost insurance company, achieved a leap with a l premium income of N 4.1 billion during the first half of 2022 ended 30th June 2022.

The figure, according to the company, is far above what was achieved in the whole of year 2021.

The company’s premium income at the end of 2021 stood at N3.4 billion; while a total sum of N459 million was paid as claims.

The Company’s report for second half of 2022 showed a profit after tax of N796 million and a total claims paid of N348 million.

The Managing Director/Chief Executive Officer, Universal Insurance Plc, Dr. Benedict Ujoatuonu, made these disclosures in his speech on the occasion of the formal inauguration of the newly elected executives of the National Association of Insurance and Pension Correspondents (NAIPCO) which took place in Lagos today, and was sponsored by Universal Insurance Plc.

Dr. Ujaotuonu who was ably represented at the occasion by the Company’s Secretary and Head of Corporate Communications Department, Chinedu Onyilimba, said the performance was made possible as a result of aggressive moves in driving its business development especially by providing special tailor-made products in their retail operations.

“Our aggressive deployment of technology, especially in driving our retail operations as well as our business expansion which led to opening of new branches, enlargement of our marketing units which also led to the engagement of new staff made this possible,” the MD/CEO stated.

He said the company is poised to drive, achieve and surpass its N6.5 billion target set for 2022 despite harsh economic environment.

Dr. Ujaotuonu said the company, as part of its strategy, will continue in its business expansion to meet its target of making its products and services available to its prospective customers across the nation, noting that the firm is expanding its investment and leveraging technology to drive its retail operations.

“We are also expanding our investment in and deploying technology especially in our retain operations, this will help us make our numerous tailor-made products accessible to the populace,” he said.

Dr. Ujaotuonu pledged his company’s commitment to continue to collaborate with NAIPCO to advance the course of insurance and pension industry in Nigeria.

The inauguration was jointly sponsored by Universal Insurance Plc, Anchor Insurance Limited, and Sovereign Trust Insurance Plc.

Patoma Admin by — August 25, 2022 in Insurance 0
STI vows to continously create exceptional value for customers, stakeholders

By Favour Nnabugwu

 

 

Sovereign Trust Insurance Plc has vowed to continuously create exceptional value for shareholders.

Managing Director/Chief Executive Officer of the Company, Mr. Olaotan Soyinka made this know at the inauguration of the new executive members of the National Association of Insurance and Pension Correspondents, NAIPCO, in Lagos, sponsored by Sovereign Trust Insurance Plc.

Soyinka noted that Sovereign Trust, is committed to innovative products and services that will improve the life of customers even as it has created an enhanced Third Party Motor insurance policy for the insuring public.

Soyinka who was represented by Deputy General Manager, Sales & Corporate Communications, Mr. Segun Bankole said: “Our mission is to enhance the everyday life of our customers through innovative insurance and financial services while creating exceptional value for our shareholders.

“As an organisation, we have been driven by our vision and mission and that attest to the fact that some of the profitable oil and gas businesses in the country, we can beat our chest that we are one of the proud underwriters in that regard.”

On the enhanced Third Party Motor insurance, Soyinka said: In terms of innovation, we have the product called the Enhanced Third Party Motor Insurance. We taught of the usual third party whereby when a claim occurs; it is only the third party that gets the benefit of having his or her vehicle repaired.

But with our enhanced third party, which is just N7,500 per annum, you have the third party being insured in case of any damage to the tune of N1 million and the insured himself or herself has that limit of liability up to the tune of N500 thousand.”

According to Soyinka, the reason for the enhanced third party motor cover is to protect their customers.

“What was the reason behind the enhanced third party motor cover? You will agree with me that economic wise, the country is not smiling. So we lost people who would rather not continue with their insurance due to the economic situation of the country.

So we deemed it fit that instead of losing a particular client, we should still be able to keep them in our dragnet. So customers will still have the feel that they have insurance. Although it is not comprehensive but at least the customer is still covered.”

Soyinka stressed that Sovereign Trust will continue to support NAIPCO, adding “You will recall that one of our journalists recently had an accident. Incidentally, he has a third party policy with us, but the person that bashed his car has a third party with another company.

We have been trying to see how we can help him get his claims sorted out as fast as possible. Extending that hand of fellowship is so critical to the success of our organisation. We do not in any way underestimate what you represent in the Nigerian society as journalists. So we are solidly behind you and will continue to support you as an association.”

Meanwhile, the following officers were inaugurated to pilot the affairs of the Association for the next two years: Nkechi Naeche-Esezobor, Publisher/Editor-in-Chief, Business Today (Chairman); Ngozi Onyeakusi, Publisher/Editor-in-Chief, Super News Online (Vice Chairman); Rosemary Iwunze, Insurance/Pension Editor, Vanguard Newspaper (General Secretary).

Others are Edet Udoh, Publisher/Editor-in-Chief, the Revealer Online (Assistant General Secretary); Adejoke Adeyemi, Insurance and Pension Editor, News Agency of Nigeria (NAN) (Treasurer); Matthew Otoijagha, Publisher/Editor-in-Chief, Business Wrap Online (Financial Secretary); and Amaka Obiefuna, Publisher/Editor-in-Chief, News Corner Online (Public Relations Officer).

Patoma Admin by — August 25, 2022 in Insurance 0
Faces @ the inuaguration NAIPCO executives in Lagos

CAPTION:

L- Sovereign trust Insurance PLC, Segun Bankole; Chairperson of NAIPCO, Mrs. Nkechi Naeche-Esezobor; Director, Communication, National Insurance Commission (NAICOM), Rasaaq ‘Salami; Company’s Secretary and Head of Corporate Communications Department, Universal Insurance PLC, Chinedu Onyilimba at the inuaguration of newly elected executives of NAIPCO in Lagos today

 

 

The National Association of Insurance and Pension Correspondents, NAIPCO, inagurated the new executives of the association in Lagos today

Patoma Admin by — August 25, 2022 in Insurance 0
NIA parleys States on Third Party Motor Insurance. Kaduna, Kogi, Rivers, Ogun already in

NIA parleys States on Third Party Motor Insurance
* Kaduna, Kogi, Rivers, Ogun already in
By Favour Nnabugwu
The Nigeria Insurers Association NIA is working closely with states on enforcement of Third Party Motor Insurance as Kogi, Rivers, Kaduna and Ogun have already keyed in
The outgoing Chairman of the NIA, Ganiyu Musa while giving account of his stewardship for the past two years
Musa noted that the NIA is engaging with Road Traffic Officers of the Federation to drive integration of the third-party motor Insurance across the states following their request for the implementation of the system in all 36 states including the Federal Capital Territory (FCT).
Musa said the Association is working closely with the state vehicle inspection service on enforcement of Third Party Motor Insurance in the states Kaduna Kogi Rivers and Ogun states have already keyed into the project
The NIA chairman is optimistic that more states are already discussing with the association to finalise arrangements on how they can join.
The NIA chairman said the association is also working with Lagos State Building Control Agency as part of engagements on the implementation of Lagos State Building law Occupiers Liability and Builders Liability insurance.
Miss said the bill will passed into law before the end of the tenure of the ninth National Assembly
He told journalists that the much awaited Consolidated Insurance Bill 2020 will soon be signed into law
Musa said the association is alsoclosely monitoring developments on the insurance bill and would continue to pursue same doggedly until the bill is passed into law
He said the association participated in all the processes thus far and would continue to monitor developments in respect of the bill.
 “It is expected that the new law will have a positive impact on the insurance space in Nigeria and align it with global best practice”
“We must acknowledge the cooperation received from the Speaker Federal House of Representatives Rt Hon Femi Gbajabiamila; Chairman and members of the House Committee on Insurance and Actuarial Matters Also National Insurance Commission NAICOM and other stakeholders in the journey thus far.
The NIA chairman lauded President Muhammadu Buhari’s assent to the Finance Act 2021 which has now given a more acceptable definition of capital
Musa who doubles as Managing Director Cornerstone Insurance Plc noted that prior to this time the definition of capital in Insurance Act 2003 was defective and highly restrictive
We appreciate the Honourable Minister of Finance Budget and National Planning Commissioner for Insurance KPMG and members of our association for their support in seeing this process through We are optimistic that this major milestone achievement has removed the major encumbrance on the recapitalisation exercise.
Musa stated that the association has began engagements with Road Traffic Officers of the Federation to drive integration of the third party motor Insurance across the states.
He pledged that the association will continue to partner relevant government agencies on the adoption of the Nigeria Insurance Industry Database NIID Insurance Industry Portal NIIP.
Our aim is to achieve national coverage We remain hopeful that other states will appreciate the value of the platform and embrace it
According to him, The association continues to scale up its engagements with the government with a view to creating more understanding on the importance and role of insurance in the national economy”
Musa said the leadership of the association has been engaging representatives of Federal Ministry of Finance Budget And National Planning the office of the Head of Service and the Accountant General s Office on provision of appropriate data and payment of premium on insurance of government assets
He stated that the association will continue to maintain a very cordial relationship with the National Insurance Commission NAICOM in the overall interest of the market.
This is to ensure that matters of common interest are discussed and agreed to avoid friction We thank the Commissioner for Insurance and the entire management of the commission for the excellent relationship and support received
Musa further stated that the association will continue to complement the efforts of National Insurance Commission, NAICOM in their campaign on domestication of compulsory insurances in the states
Musa listed some of his achievements to include the completion of the Insurers House project which commenced in May 2018 NIA s 50th anniversary and hosting of the Africa Insurers Organisation AIO.
Patoma Admin by — August 24, 2022 in Insurance 0
Global Reinsurance premium up by 18% – Gallagher Re

By admin

 

The globally diversified major reinsurance companies of the world group grew their premiums by 18 percent in the H1 of 2022, suggesting diversification and footprint is proving beneficial to them strategically.

Reinsurance broker Gallagher Re reported that premium growth across the reinsurers that it tracks averaged 12 percent in H1 2022, supported by continued favourable pricing for commercial lines and reinsurance business.

For the H1 of 2022, the average combined ratio was 94.1 percent with all but three re/insurers posting a sub-100 percent combined ratio.

Across the H1, the nat cat loss ratio fell by half a percentage point, but in the Q2 in isolation, it rose by 1.5 percent to contribute 6 percent of the combined ratio, with attritional losses also up 1 percent to 61.8 percent

However, growth is far from even across the industry, with certain companies taking their opportunities to exert the advantage that global and line of business diversification offers to them.

Next, the often slightly less diversified, geographically and in terms of business line, North American and Bermudian re/insurers that as a group expanded by 14 percent in the half.

“Continued pricing gains for commercial lines business remained the key driver of premium growth in Q2,” Gallagher Re explained.

With Q2 of 2022 seeing accelerating premium increases, an impressive 9 of the 25 companies Gallagher Re tracks reported a greater than 20% premium increase year on year for that quarter, versus just 5 out of the 25 at the end of Q1.

The broker highlights that a number of management teams expect commercial premium increases to continue to outpace loss cost trends into 2023, but points out that the average attritional loss ratio increased by 1 percentage point versus the prior year in Q2 2022.

It’s also worth noting that natural catastrophe losses, as a contributor to the average combined ratio across the commercial insurance and reinsurance cohort, increased in the Q2 as well.

That, in a relatively benign quarter for major global catastrophe loss activity, but one where the frequency of severe weather peril impacts had continued to erode some of the profitability of re/insurers.

Going back to premium growth, it’s perhaps notable that some of the strongest growth in property lines of business comes from the global players, while many of those pulling back from property cat risk are in the middle-tier of the industry.

It’s not the same across the board though, as some global reinsurers are slashing cat exposure too, suggesting a bifurcation in strategy across the market, as some companies believe they have the underwriting expertise and diversification in their portfolios to absorb catastrophe exposures, even at the recent historical rates of frequency and severity.

After the mid-year reinsurance renewals, there has been a slight adjustment in the industry’s exposure to US coastal wind as a peril, which means any major storms this year could result in a different dispersion of losses across insurance and reinsurance firms, compared to prior years, which will be interesting to watch out for as hurricane season progresses.

Patoma Admin by — August 24, 2022 in Insurance 0
Naicom recieves Estate Surveyor president, Johnbull Amayaevbo in Abuja

CAPTION:

R- Commissioner for Insurance Sunday Thomas welcoming President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo in Abuja today.

 

National Insurance Commission, Naicom, received the President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo  who paid a courtesy call on the Commissioner for Insurance Mr. Olorundare. Sunday Thomas.

The Visit is to strengthen collaboration and working relationship between the two agencies especially in the areas of insurance of public buildings, buildings under construction and professional indemnity for members of the professional body.

The meeting also discussed the need for the insurance industry to always ensure use of registered Estate Surveyors and Valuers in the valuation of their assets.

L- Alhaji Sabiu Abubaka r, Deputy Commissioner for Insurance Technical, President and Chairman of Council of the Nigerian Institution of Estate Surveyors and Valuers ESV Johnbull Amayaevbo  and the Commissioner for Insurance, Mr Olorundare Sunday Thomas during the Surveyors chief visit

 

 

 

 

Patoma Admin by — August 22, 2022 in Insurance 0
Coronation Insurance GWP hit N11.5bn in H1 2022

By Favour Nnabugwu
Coronation Insurance Plc, one of leading financial services company in the country recorded a gross written premium of N11.5 billion as at the end of the first half of this year, 2022.
The was a leap from the figure of N8.3billion posted in the same period of 2021.
The group premium income at as June stood at N9.3bn in the half year from N6.9bn posted in the previous year 2021
Underwriting profit for the period under review rose to N3.5bn as at the end of June 2022 from N892m in the same period of 2021.

group’s  Net Premium Income grew to N5.7 bn in Q2 of 2022 against N4.6bn recorded in the comparable period of 2021 Q2 while Net Underwriting Income as well  soared to N6.2bn compared to N5bn posted within the same period in 2021.

Claims paid grew to N3.1 bn in Q2 of 2022 against N2.8 recorded in the corresponding period of 2021 while Total underwriting profit rose significantly to N3.5 bn in Q2 of 2022 from N892 million posted with the same period in 2021.

Group’s Asset, grew to N9 bn in Q2, 2022 from N7bn recorded bn in Q2 2021 while Total Assets soared  to N43.9 bn against N39.8 bn recorded in corresponding period of  2021 .

As at June 30, 2022, the profit before tax stood at N613million from N405.6m in 2021.
For Coronation Insurance has a total asset hitting N43.9bn in half year 2022 from N39.8bn in 2021.
Total liabilities of the company increase from N18.2bn in 2021 to N23.3bn in the half 2022.
With the company coming forth with it’s result on time, the Managing Director, Mr Olamide Olajolo had said the Coronation Insurance teaming customers would began to see the result of investment in technology and other effect put together to make the company a spotlight.

“We are leveraging on their customers and we developed digital channels to ensure we access those customers.

He affirmed, “I am very confident that in the coming months, you will start seeing the results of these efforts. We have invested in technology, people and human resources.”

Patoma Admin by — August 22, 2022 in Insurance 0
Naicom to sift the industry of non-performing companies

By Favour Nnabugwu

 

 

The Governing Board of National Insurance Commission (NAICOM) has vowed to revisit the insurance industry recapitalisation, even as it is seeking the support of the Federal Government to effect a major restructuring of the sector and eliminate non-performing companies.

NAICOM’s Board Chairman, Dr. Abubakar Sani, said this yesterday when he led members of the Governing Board on a courtesy visit to Minister of Finance, Budget and National Planning, Zainab Ahmed, in Abuja.

Dr. Sani intimated the Minister of the Board’s plan to carry out specific exercises aimed at sanitizing the insurance industry in the country, stressing that enforcement of the code of ethics for companies in the sector is underway.

“We shall enforce the professional code of ethics among the insurance entities, and strengthen their corporate governance which the Board believes will sanitize the market.

”The NAICOM Board will in due course revisit the matter of recapitalization of the insurance industry and will clean up its act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies. The board is working to sanitize the market and will be taking out companies that are not measuring up to expectations,” he said.

Minister of Finance, Budget and National Planning, Zainab Ahmed, charged the Board and the Management of NAICOM to develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s Gross Domestic Product (GDP) and the economy at large.

She, however, urged members to be mindful of existing guidelines regulations and circulars that guide the operation and conduct of the Governing Boards of Federal Government Parastatals, Agencies and Commissions and strictly adhered to them.

“The initiative to pay this visit barely two months after your inauguration demonstrates your sense of purpose and desire to work closely with the Ministry towards realizing the mandates of NAICOM.

“At your inauguration, I called your attention to some issues of interest and concern in the Insurance Industry which require your urgent attention, This visit, therefore, affords me yet another opportunity to once more congratulate you on your inauguration and inform you that Government has a very high expectation of this Board. You must build on the successes of the immediate past Board.

“In this regard, I wish to restate some of those issues and remind you of your role as Chairman and members of the Governing Board of NAICOM.

The Board which also comprises the Management should develop and implement policies which will strengthen the insurance sector and reposition the industry to enhance its contribution to the nation’s GDP and to the economy at large.

“It is of utmost importance for the New Board and the Management of the National Insurance Commission to work harmoniously together to actualize the mandate of the Commission.

“The Board has to develop strategies to systematically build the capacity of members through Workshops, Seminars, Study Tours, etc. to enable effective contribution towards the growth of the Industry, especially as some members were not drawn from the Insurance Sector.

“Members to note that there are guidelines regulations and Circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and should be strictly adhered to – Frequency of meetings; entitlements of Board members, Travel guidelines and related matters.

“Deepening Insurance Penetration in the Country: There would be a need to achieve more insurance penetration in the country.

In this regard, there is a need to evolve new insurance products and policies.

“The Board and the Management must ensure that the condition of service and welfare of the staff creates a conducive atmosphere to promote staff productivity and engender industrial peace.

“Finally, members should commit to develop and implement policies that would promote the reputation of the Industry through prompt payment of claims. Your target should be to take the Industry to greater and enviable heights during your tenure.

“In conclusion, I wish to restate the Ministry’s commitment to continue to assist and support the Commission towards realizing its mandate for the overall benefits of the nation,” she submitted.

Patoma Admin by — August 16, 2022 in Insurance 0
ARC plans to increase cost-efficiency, capacity

By Favour Nnabugwu

 

 

The African Risk Capacity (ARC), a provider of parametric disaster insurance products to countries and now other entities in Africa, plans to increase its capacity and cost-efficiency for country members remains key.

Getting African governments on-side to purchase disaster insurance in parametric form has been key and donors have, as you’d expect, played an important role in premium payments at times.

But ARC’s real mission is to scale and create efficiencies so that countries can afford to participate and see the benefit of doing so as well.

Speaking at a meeting of ARC member states, Class A &C members and funding donor partners, ARC Limited CEO Lesley Ndlovu explained the value proposition, “In the history of ARC, we have paid about US$125 million in claims and half of that was in last year’s Pool 8. We are extremely happy when we pay claims because these go towards meeting the needs of Africa’s most vulnerable people. These pay-outs also demonstrate the value of the insurance mechanism.”

Ndlovu also noted the importance of access to broader global risk transfer markets, something ARC has leveraged since it was first launched, having had a reinsurance program placed with major reinsurers and at times some ILS fund participation.

“The fact that about half of the claims paid were paid by the insurance market means that ARC is able to take weather-related risks on the African continent and seed them into global markets such that when there’s a disaster on the African continent, part of the payment for the cost of that disaster also comes from the global reinsurance markets, again demonstrating the value of having a mechanism like ARC,” Ndlovu said.

Ndlovu also explained that ARC continues to pilot new risk transfer products, including parametric flood insurance and a pandemic risk transfer product.

In addition, ARC Limited still aims to broaden its risk pool further than pure sovereign parametric insurance as well.

This is important, as it could help ARC grow the parametric risk pool far more quickly, increasing the reinsurance market efficiencies that are possible and the diversification of the risk pool as well.

The introduction of micro and meso insurance products is already underway, with a number of parametric pilot projects in progress, Ndlovu explained.

But the sovereign risk transfer will remain core to ARC’s mission, it seems, with Ndlovu explaining the need to get more African nations onboard and buying protection from the risk transfer provider.

“Currently, we have 13 countries that participate out of 55 on the African continent. We need more to participate, and are also working very hard to bring partners into the ecosystem so we are able to overcome the two main barriers we face in the growth of insurance – the affordability of premiums and increasing capacity building so there is greater understanding of the role of insurance in disaster risk management,” Ndlovu said.

Capacity building should not be a problem, as African disaster risks are an attractive diversifier for global reinsurance and insurance-linked securities (ILS) providers, the only issue remains price and this is where scale could be critical for ARC.

By increasing its scale and expanding its risk pool, ARC will have more risk to cede to global reinsurance and ILS markets, driving the economies of scale that can result in reinsurance market efficiencies.

Concluding his speech at the event Ndlovu said, “We all know that Africa is a continent that is most exposed to climate-change-related risks and with ARC we have in our hands an instrument that can play a vital role in creating the solution to protect the most vulnerable African citizens against the worst impacts of extreme weather. It really is up to us to make this initiative a success.

Patoma Admin by — August 16, 2022 in Insurance 0
Wale Banmore is new MD of Staco Insurance

By Favour Nnabugwu

 

 

Following the new wave of investors in Staco Insurance Plc, a new managing director has been appointed by name, Mr Wale Banmore after the approval of the National Insurance Commission (NAICOM)

Banmore have  worked with several companies and served at various capacities in the industry.

Wale Banmore is a seasoned insurer with over 30 years on the job experience in the insurance industry. He is undergoing a Ph.D in Strategic Marketing at Babcock University.

He is a graduate of Sociology from the University of Ibadan and holds a Master’s Degree in Managerial Psychology from the same institution.

He is an associate member of the Chartered Insurance Institute of Nigeria (ACIIN); a member of the Africa Insurance Organisation(AIO); a member of the Nigeria and South Africa Chambers of Commerce and an alumni of the Lagos Business School(LBS).

Having worked with several organisations under several capacities between 1992 and 2003, he joined the Royal Exchange group in 2003 and acted in various managerial capacities within the company. He was the Managing Director of Royal Exchange Prudential Life Plc, a subsidiary of Royal Exchange Plc from 2011 to December 4, 2019.

In December 2019, he was appointed as the group managing director of Royal Exchange Plc, having became the managing director/chief executive of Royal Exchange Prudential Life, between October 2011 and August 2018.

He was midwifing the proposed microinsurance subsidiary of Bosak Group as the managing director/CEO between April 2021 and May 2022, a place he left to spearhead the new management of Staco Insurance Plc.

Patoma Admin by — August 15, 2022 in Insurance 0