All Posts in "Insurance"

WTW reports net income of N186m for Q2 2021

By admin

 

Re/insurance broker Willis Towers Watson has announced second quarter net income of $186 million, up from the $102 million reported in the prior year period
Revenue was $2.29 billion, an increase of 8% from the $2.11 billion reported a year ago.

Adjusted operating income was $409 million, or 17.9% of revenue, an increase also up from last year’s Q2.

The Corporate Risk & Broking (CRB) segment had revenue of $788 million, an increase of 12% from $701 million in the prior-year second quarter.

North America benefited from gains in connection with settlements and book-of-business sales in the quarter.

The Investment, Risk & Reinsurance (IRR) segment had revenue of $400 million, down 3% from $413 million in the prior-year second quarter.

On an organic basis, most lines of business contributed to the growth. Reinsurance growth was driven by new business wins and favourable renewal factors.

WTW’s IRR segment also secured $133 million in net income for the quarter, up from $119 million in the prior year quarter.

“We delivered very strong quarterly financial results, and I am proud of our results for the first half of 2021,” said John Haley, Willis Towers Watson’s Chief Executive Officer.

“In the second quarter we delivered broad-based revenue growth, continued margin expansion, and had significant earnings per share growth. I am encouraged by our growth momentum and the improving macroeconomic outlook.

“Our financial results reflect our talented colleague base, their perseverance, the strength of our client relationships and our compelling value proposition. We are focused on moving forward independently, with confidence in our ability to continue delivering significant value for all of our stakeholders.

“We are well-positioned to compete vigorously and independently across our businesses around the world and will continue to innovate and adapt to address evolving client needs

Patoma Admin by — August 5, 2021 in Insurance 0
Heirs Insurance, Heirs Life delivers on 5 mins insurance purchase promise

By Favour Nnabugwu

 

 

Insurance companies, Heirs Insurance Limited (HIL) and Heirs Life Assurance (HLA), have confirmed that customers are now able to purchase insurance policies from their websites, www.heirsinsurance.com and www.heirslifeassurance.com, in mere minutes.

The revolutionary, interactive websites—first of their kind in Nigeria—ensure that customers have access to quick insurance, completing transactions in minutes wherever they are, without any human intervention.

This development signals the kick-off of the companies’ ambition to digitalise insurance and provide a viable alternative for customers to purchase products and request claims without delay, as well as learn more about insurance.

Mansging director, Heirs Life Assurance, Mr. Niyi Onifade explained that the websites were designed to remove the barrier of accessibility.

He said: “For us at Heirs Insurance and Heirs Life, our business revolves largely around satisfying our customers and we understand the important role technology plays in making that happen, as well as widening the scope of our offering to underserved markets”

“Presently, our websites offer a web app feature that allows customers to buy and pay for policies in just five minutes and request for claims within 24 hours. This, we believe, is the ease customers truly deserve and we are glad to be pioneering that”.

Acting Managing director of Heirs Insurance Limited,  Dr. Adaobi Nwakuche   confirmed the companies’ stance on technology offering ease and comfort to customers.

She said: “We are delighted that customers can now purchase products via our websites. This milestone speaks to the innovation we are bringing into the insurance industry and more importantly, our commitment to our customers. Our promise of simple, quick, accessible, and reliable insurance service is closer than ever”.

The duo of Nwakuche and Onifade have repeated severally in their series of media engagement that the companies will constantly be at the intersection of technology and innovation, leveraging the power of both factors to provide for customers, well-tailored, value adding products at affordable prices.

Heirs Insurance Limited (HIL), the general insurer, with the mandate to protect people’s properties, and specialist life insurance company, Heirs Life Assurance Limited (HLA), with a vision to provide financial security and life insurance plans for people, are positioned to become the leading Nigerian insurers leveraging digital to provide simple, quick, reliable, and accessible insurance to individuals and businesses.

With paid-up share capitals of N10billion and N8billion respectively, HIL and HLA commenced full operations with a workforce of astute and experienced professionals, and a robust financial capacity to underwrite all classes of general and life insurance businesses.  The companies are supported by top-notch Reinsurers to provide second-layer security for clients’ insurance portfolios. Both companies are subsidiaries of Heirs Holdings, a pan-African investment group with presence across twenty three countries worldwide.

Patoma Admin by — August 4, 2021 in Insurance 0
Unitrust Insurance records GWP of N3.98bn in 2020

By admin

 

Unitrust Insurance Company Limited, recorded a Gross Premium Written (GPW) of N3.98 billion, representing a year-on-year growth rate of 13 per cent when compared to the previous year.

The Managing Director of the underwriting firm, Mr. John Ijerheime, disclosed this today during a courtesy visit by the executive of National Association of Insurance and Pension Correspondents (NAIPCO) to the firm’s head office in Lagos.

He noted that the company closed the year with a Profit After Tax (PAT) for the year stood at N747.17 million. Profit of N802.19 million and paid N1.8 billion claims in 2020

“In the same vein, the company’s underwriting profit improved significantly as the total profits of N802.194 million from N 301.759 million reported in the 2019 financial year. The claims paid for the year was N1.08 billion,” he said.

Ijerheime reiterated that against the backdrop of challenges that characterised the year, the company delivered an outstanding performance across key metrics.

“Indeed, 2020 was a year that will be remembered for its unprecedented disruptions, which were primarily attributed to the COVID-19 pandemic and its multidimensional impacts on global economies. Yet, in the face of prevailing circumstances the Company delivered impressive results during the Year.

“Our business growth model is driven by structural analysis of our strengths, weaknesses, opportunity, and Threats (SWOT) for responsive bonding irrespective of the challenging situations. We have by this result, demonstrated our robust capacity and sustainable execution of our strategic growth plans,” he submitted.

On 2021 half year performance, he stated that as at July 31, 2021, the company had generated N3.7 billion premium, which was closed to what it did in the full year of 2020, adding that the firm anticipates closing the year with over N5 billion.

The Unitrust Insurance boss said the firm had paid over N400 million claims this year.

Chairman of NAIPCO, Chuks Udo Okonta, used the visit to abreast the management of the company of the initiatives adopted by the association to contribute immensely towards the development of insurance sector.

According to him, “Claims profiling helps in showcasing companies claims payment history for a period of five years, while product profiling focuses on the benefits of arrays of products paraded by companies and management profiling helps showcase the pedigree of individuals steering the affairs of companies..

Patoma Admin by — August 3, 2021 in Insurance 0
Tanzanian Govt calls on insurance industry to back financial sector masterplan

By admin

 

 

The Tanzanian government is urging the insurance industry to work together to support the country’s Financial Sector Development Master Plan 2020-2030.

The master plan sets ambitious goals for the insurance sector, including:
50 percent coverage of the adult population within a decade;

life insurance penetration to be 3 percent and non-life, 2 percent

10 percent of beneficiaries of retirement plans to use annuity products by 2030;

90 percent of the population have health insurance by 2030;

20 percent of the adult population have life savings products;

80 percent of the population are aware of insurance matters by 2025;

10 percent of total insurance premium to contributed by agriculture insurance by 2030;

10 new demand-driven insurance products developed by 2030;

8 affordable insurance distribution channels to be developed by 2030.

Speaking at the official opening of the annual conference of the Tanzania Insurance Brokers Association (TIBA) in Dar es Salaam last week, Permanent Secretary in the Ministry of Finance and Planning Emmanuel Tutuba said the government alone cannot achieve the goal of expanding insurance coverage to all. Support is needed from the private sector.

He said that insurance is key to the country’s financial inclusion agenda and the bulk of growth of the financial sector in the next decade is expected to be generated by the insurance industry.

Mr Tutuba said, “This transformation can only happen if the insurance industry pivots itself on innovation and synergy. The first part is digitalisation. The second part is for the players, re/insurers, insurance brokers/agents, bank assurers and all the players across the insurance value chain to work in synergy so as to achieve the economies of scale.”

Insurance industry’s capacity to be expanded

He also said that the government would seek to enhance the industry’s underwriting capacity with the view to improving the insurance sector’s contribution to the national economy. Special thrust will be on enhancing capital requirements and human skills development as well as establishment of pools for specialised and large risks, for example, oil and gas as well as aviation.

Patoma Admin by — August 3, 2021 in Insurance 0
Aon’s revenue from commercial risk jumps to 20% in Q2′ 2021

By admin

 

Broking giant Aon has benefited from a 20% jump in revenue within its commercial risk segment, the segment’s revenue rose from $1,126 million in Q2′ 20 to $1,349 million. citing strong new business generation, retention, and management of the renewal book portfolio.

This improvement has also been attributed to the more discretionary portions of Aon’s business, primarily in transaction liability, project-related work, construction, and cyber consulting, which were negatively impacted in the prior year period.

Aon’s efforts in the reinsurance space during Q2 saw the firm secure a 12% year-on-year increase that resulted in revenues of $500 million.

Market impact is reported to have been a modestly positive driver in this area, with the majority of revenue in its treaty portfolio recurring in nature and recorded in connection with the major renewal periods that take place throughout the first half of the year.

Equally, the second half of the year is driven by facultative placements and capital markets that are more transactional in nature.

Net income attributable to shareholders was $379 million, down from $398 million in the prior year quarter.

Total revenue increased 16% to $2.9 billion, including organic revenue growth of 11%, which CEO Greg Case describes as the firm’s strongest in over a decade, translating into 17% growth in earnings per share, and contributing to 13% free cash flow growth.

“These results demonstrate the incredible resilience of our colleagues and the power of Aon United, said Case.

“We are moving forward at an accelerated pace, with a proven leadership team and an enduring strategy.

“Our ability to innovate on behalf of clients remains unrivaled and continues to translate into significant progress against key financial metrics and shareholder value creation.

Patoma Admin by — August 3, 2021 in Insurance 0
Swiss Re reports $1bn net income for half year 2021

By admin

 

Global reinsurance giant Swiss Re has reported net income of $1 billion for the first half of 2021.

An improved performance in its property and casualty (P&C) business more than offset a COVID-19 driven loss in its life and health (L&H) reinsurance division.

Swiss Re’s H1 2021 Group-wide profit would have reached $1.7 billion excluding COVID-19, compared with a net loss of roughly $1.1 billion for the prior year period, during which Swiss Re reported pandemic losses of a massive $2.5 billion.

Starting with its P&C reinsurance arm, and Swiss Re has announced net income of $1.2 billion for H1 2021, which is a solid improvement on the loss of $519 million for the same period last year.

The firm attributes the robust performance to disciplined underwriting, ongoing price improvements, and significantly fading COVID-19 related losses and a strong investment result.

Within P&C Re, the return on equity (RoE) totalled 27.2%; as Swiss Re grew net premiums earned by almost 9% to $10.5 billion, driven by both volume and price increases.

Losses from natural catastrophe events reached $521 million for the period and are mostly related to US Winter Storm Uri, while Swiss Re’s P&C arm has reported man-made losses of $100 million for the period.

The impact from the pandemic on P&C reinsurance was minimal in H1 2021, says Swiss Re, adding that it expects P&C losses related to COVID-19 to amount to less than $200 million for the remainder of 2021.

At the recent July reinsurance renewals, P&C Re achieved a nominal price increase of 4%, while the volume of treaties remained stable at $16 billion.

Overall, P&C Re has reported an improved combined ratio of 94.4 percent for H1 2021 compared with 115.8 percent  a year earlier, with the unit on track to meet its target, normalised combined ratio of less than 95% in 2021.

“Overall price quality improved, more than offsetting the impact of decreased interest rates and adjustments to loss assumptions. In the July treaty renewals, premium volumes slightly increased, with growth in attractive natural catastrophe business in the US,” says Swiss Re.

Within L&H Re in H1 2021, Swiss Re has announced a net loss of $119 million in light of continued losses from the pandemic.

While these losses fell in Q2 when compared with Q1, the vast majority of Swiss Re’s COVID-19 loss of $870 million in H1 2021 are attributable to its L&H Re business. In fact, excluding L&H Re COVID-19 losses of $810 million, L&H Re’s underlying business performed well, with net income of $530 million.

Net premiums earned and fee income jumped by more than 12 percent, year-on-year, to $7.5 billion, mostly as a result of longevity transactions in the EMEA region and favourable foreign exchange developments.

For the Group, net premiums earned and fee income increased by 7.6 percent to $20.8 billion in H1 2021, when compared with the prior year period.

The reinsurer produced a return on investment of 3.2 percent in H1 2021, driven largely by recurring income as well as equity valuation gains.

Swiss Re’s Group Chief Executive Officer (CEO), Christian Mumenthaler, commented: “We are very pleased with the improved profitability achieved by the Group in the first half of this year. The focus on portfolio quality at P&C Re is delivering very strong results, and we are reaping the fruits of our decisive actions that brought Corporate Solutions back on track.

“Although L&H Re is still impacted by claims related to COVID-19 as we support our clients and society during this pandemic, its underlying business continues to perform well. All our businesses are growing, and our very strong capital position allows us to pursue attractive opportunities across all lines of business.”

John Dacey, Swiss Re’s Chief Financial Officer (CFO), added: “Our property and casualty businesses are on track to deliver on their ambitious combined ratio goals for this year. At L&H Re, we currently believe that the progress of the global vaccination programmes will lead to diminishing COVID-19 losses over the coming quarters. Swiss Re’s asset management continues to successfully navigate financial markets and deliver strong returns for the Group.”

Turning to the Corporate Solutions division, and net income here reached $262 million for H1 2021 after a solid turnaround of the business last year. This positive result compares with a COVID-19 driven loss of $312 million for the unit in H1 2020, and was achieved in spite of nat cat losses of $155 million.

Net premiums earned in Swiss Re Corporate Solutions increased by more than 3 percent to $2.6 billion, driven by realised rate increases and selective new business growth. The division’s RoE hit 21.1 percent, and combined ratio totalled 92.7percent, and was supported by favourable prior year development, explains Swiss Re.

At iptiQ, gross premiums written for the core business jumped by a significant 133 percent to $333 million for H1 2021, with Swiss Re noting good contributions across all businesses.

The entity’s gross income, excluding COVID-19 impacts of $5 million, increased by more than 50bpercent, year-on-year, to $26 million for H1 2021.

“The first half of 2021 has demonstrated the strength of our business model as we see our underwriting actions deliver results. While we remain in an uncertain pandemic situation, we are confident that all our businesses are well positioned to continue to perform strongly,” said Mumenthaler.

Patoma Admin by — August 3, 2021 in Insurance 0
Naicom sentitises MSMEs on insurance August 5

By Favour Nnabugwu

The National Insurance Commission(NAICOM) is having a sensitisation programme with Micro, Small and Medium Enterprises(MSMEs) on insurance come August 5, 2021.

The Commission is bringing together MSMEs across the entire Lagos state and its environs to learn and discuss key issues around the subject through insightful conversations with experts on the field.

A statement from the commission and signed by the Head, Corp. Comms and Market Development, Salami ‘Rasaaq, said, the workshop, which will take place in Lagos on the 5th of August, 2021, added that, the executive governor of Lagos State, Mr. Babajide Sanwo-Olu is expected to declare the workshop open and deliver a keynote address.

He stressed that, the commission is serious about increasing insurance penetration, adoption and acceptance in the country and has been partnering relevant stakeholders to make this dream a reality.

The regulatory body had earlier sensitised MSMEs as well as relevant stakeholders in Kano State and the Federal Capital Territory(FCT), Abuja, on the need to subscribe to insurance products and services and the outcome was deemed successful.

Patoma Admin by — August 3, 2021 in Insurance 0
Olatunji Oluyemi passes on @ 57

By admin

 

 

An astute insurer Patrick Olatunji Oluyemi, has passed on at the age of 57 years.

According to a family member who confirmed his death, he passed on on Friday, July 23, 2021.

“With gratitude to God for a life well spent and total submission to the will of the Almighty, the Oluyemi family hereby announce the passing unto glory of their beloved, husband, father, and brother,” the family said.

A burial programme issued by the family noted that there would be service of songs in his honour at Anglican Church of the Beautiful Gate, Victoria Garden City, Lagos, on Thursday, August 12, 2012 by 5:00 pm, while burial service would hold at at the same church on Friday, August 13, 2021 by 11:00am and internment follows immediately at Ikoyi cemetery.

He was former Managing Director, Royal Exchange, Glanvill Enthoven Insurance brokers & Pensions Consultant Limited and Unity Kapital.

Patoma Admin by — August 1, 2021 in Insurance 0
SUNU Assurance announces N4.2bn GPW in 2020

CAPTION

L –  Executive Director, SUNU Assurances, Mr Adeleke Hassan, Managing Director and Chief Executive Officer, SUNU Assurances, Mr Samuel Ogbodu and Chairman Board of Directors, SUNU Assurances, Mr Kyari Abba Bukar at the 2020 Annual General Meeting of SUNU Assurances PLC held today in Lagos.

 

By Favour Nnabugwu

 

 

SUNU Assurances Nigeria Plc has announced a Gross Written Premium (GWP) of N4.209 billion in the financial year 2020.from N3.060 billion in 2019

The Group also recorded a growth in its  Profit Before Taxation (PBT) of N313.41 million in 2020.

This represented growth of N1.149 billion in value and 37.5 per cent in percentage terms and the growth was due to the Group’s strategic decisions on revenue generation.

The net claims incurred for the Group increased by 14 per cent from N658 million in 2019 to N752 million in 2020.

However, the underwriting profit grew by 38% from N1.189 billion in 2019 to N1.636 billion in 2020. This was due to 34 per cent increase in total underwriting income from N2.429 billion in 2019 to N3.246 billion in 2020.

The Group operating expenses for 2020 totalled N1.846 billion, which was 3.5 per cent decrease when compared to 2019 figure of N1.913 billion. This decrease was as a result of the Group’s deliberate strategy to improve its operational efficiency using information technology.

The investment income for the year amounted to N345.58 million, a decrease of 52 per cent over 2019 figure of N719.53 million. This was attributed to the fall in investment rate on placements held with financial institutions and FGN Securities in most part of 2020 financial year when compared to 2019.

The company recorded a loss before taxation of N188 million in 2019, despite the effects of COVID -19 pandemic.

The Chairman of the company, Kyari Abba Bukar while presenting the results to shareholders today at the 34th annual General Meeting of the Company held in Lagos, said he excited that the Group has returned to profitability during the year under review.

He disclosed that the company has proceeded with its plan to raise capital, noting that the Board of Directors in exercise of the mandate by Shareholders mandated SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA on behalf of the company to pay-off the holders of all the JPY1,350,000,000 Zero Coupon Bonds 2026 issued by the company the sum of USD$7,800,000.00, representing the outstanding indebtedness owed to the Bondholders by the company as at 31st December, 2019.

He explained that upon the repayment of the debt, the total refinancing amount which was converted to equity through the allotment of ordinary shares to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was agreed at N3,010,800,000.00 ($USD7,800,000 converted to Naira at N386/USD$1 using the exchange rate at I&E window at the date of the consummation of the transaction).

He said: “The issuance of 3,010,800,000 ordinary shares of 50 kobo each at N1.00 per share by way of private placement to SUNU Participations Holding SA and SUNU Assurances Vie Cote D’Ivoire SA was completed with the regulatory approvals received from NAICOM, SEC, Federal High Court, NSE, CSCS, CAC and FRCN.

“The shareholders fund increased from N3.66 billion as at 31st December, 2020 to N6.67 billion as the date of the AGM. It is expected that the second stage of the raising of additional capital by way of Rights Issue of N3.5 billion would commence in July 2021 and would be completed by 30th September, 2021.

“I would therefore urge the minority shareholders to take advantage of the Rights Issue offer to increase their shareholding given the requirement of the free float rule of the NSE which requires the company to maintain twenty percent (20%) of its issued share capital to be made available to the public and held by not less than three hundred (300) shareholders,” he added.

Patoma Admin by — July 31, 2021 in Insurance 0
Aon records 16% increase in revenue for Q2 2021

By admin

 

 

 

Aon has reported that its overall revenues grew 16 percent to $2.9 billion, backed by organic revenue growth of 11 percent across its broking, consulting and advisory businesses.

Insurance and reinsurance broker Aon reported particularly strong growth for Q2, with 9 percent organic revenue growth in reinsurance overall.

Aon got double-digit growth in capital market transactions such as catastrophe bonds and insurance-linked securities (ILS).

Organic revenue growth continues to be very strong for the brokers and Aon reported 14 percent growth in commercial risk broking and 9 percent in reinsurance broking for the second-quarter.

As a result, reinsurance revenues reach $500 million for the quarter for Aon, 12 percent higher than the $448 million reported in the prior year period.

Reflecting high-levels of activity in the insurance-linked securities (ILS) market during the second-quarter of the year, which you can read all about in our latest report here, Aon reported a particularly strong quarter for its Aon Securities unit.

Aon said that its 9 percent reinsurance organic revenue growth reflects growth in treaty, thanks to net new business wins globally, and solid growth in facultative reinsurance placements as well.

But outpacing those, Aon also reports that it experienced double-digit growth in capital markets transactions.

Aon has a particularly active capital market unit (in Aon Securities), with a significant market share in ILS structures, especially catastrophe bonds, as our leaderboard shows.

Capital market transactions, such as ILS and catastrophe bonds, can deliver significant revenues, but tend to be lumpy across the year, due to peaks of issuance.

This year promises to perhaps be a little more balanced, as both the first and second quarters have already been active, while Q3 is already quite active for the time of year and more cat bonds are expected later this quarter.

The final quarter of the year is also anticipated to be busy and Aon recently said it expects a strong chance of a record year for the catastrophe bond market.

That should give the broker further opportunity to drive organic revenues higher with the help of capital market and ILS transactions over the rest of 2021.

Patoma Admin by — July 31, 2021 in Insurance 0