All Posts in "Insurance"

Africa Re extends CEO Karekezi’s contract to 2026 as chairman quits board

By Favour Nnabugwu

The African Reinsurance Corporation (Africa Re) has extended the contract of group managing director and chief executive officer (CEO) Corneille Karekezi until June 2026.

The 43rd General Assembly of Africa Re was held remotely on 30 June 2021. On that day, the Board of Directors decided to reappoint  Karekezi as Chief Executive Officer (CEO) for another five years.

Karkezi has been managing the pan-African reinsurer since 1 July 2011.

Also, the Board of Directors being chaired by Mr Hassan BOUBRIK and comprises 12 substantive members is to leave the board as Chairman.

KAREKEZI rose to the current position of Group Managing Director / Chief Executive Officer of Africa Re in July 2011 after a transitional period of 2 years during which he served successively as Deputy Managing Director and Deputy Managing Director / Chief Operating Officer. Between 2003 and 2005 he served on the Board of Africa Re.

His professional career started in 1991 as Chief Accountant /Reinsurance Manager of the leading insurance company in Burundi (SOCABU s.m.), where he rose to the position of Head of the Finance Department. In 1995, he joined the leading insurance company in Rwanda (SONARWA s.a.) as Deputy Head of the Commercial & Technical Department. From 1996, he successively headed all the Technical Departments (Motor, Fire, Accidents & Miscellaneous Risks and Life) and was appointed Deputy Managing Director in early 2001. In February 2008, he was appointed Chief Executive Officer of SONARWA s.a.

Dr KAREKEZI holds a Bachelor’s degree in Economics (Burundi), Postgraduate Diplomas in Business Administration (UK), a Master’s degree in Management (Burundi), an Honorary Doctorate in Business Administration (UK) and a Doctorate in Business Administration (France & Israel). He speaks fluently English, French, Swahili and other African languages.

Since 1996, he has contributed significantly to the development of the insurance / reinsurance industry in Africa through his involvement and leadership in various national, regional and continental initiatives and organizations. He has equally participated actively as speaker in seminars, conferences, symposia and other fora across the world.

He has served as Chairman and member of governing bodies of various financial institutions in Africa. He is currently the Vice Chairman of Africa Re (South Africa) Limited, Vice Chairman of Africa Retakaful Company (Egypt) and a Member of the Executive Committee of the African Insurance Organization (AIO) where he chairs the Finance Committee.

Meanwhile, the Directors of Africa Re are elected by the General Assembly for a period of three years and may be reelected at the expiration of the term. They shall continue in office until their successors are elected. The table below contains the current members of the Board of Directors of the Corporation as well as the constituencies/group of shareholders which they represent.

Patoma Admin by — July 8, 2021 in Insurance 0
NCRIB charges brokers to examine viability of insurers before placing business

By Favour Nnabugwu
THE Nigerian Council of Registered Brokers (NCRIB) has charged insurance brokers to critically examine the viability of insurance companies before placing business with them.
The Council’s President, Dr Bola Onigbogi, announced this at the bi-monthly members’ evening hosted by Heirs Insurance Limited (HIL) and Heirs Life Assurance Limited (HLA)in Lagos on Tuesday.
Onigbogi charged the council’s members to always critically examine the viability of an underwriter before placing business with them, following the expulsion of three insurance companies by the Nigeria Insurance Association (NIA) as its members.
The President promised that her leadership would not relent in ensuring that the council becomes an indispensable entity in the insurance value chain.
Onigbogi explained that the endorsement was as a result of the two newly launched companies’ offers of progressive array of products and promise of excellent service.
“I have no iota of doubt in my mind that Heirs Insurance and Heirs Life are companies to watch out for in the market.
“A critical examination of your workforce and your enthusiasm to host this members’ evening at a time like this is a pointer to a greater business exploit you are poised to accomplish.
“I  guarantee you of your endorsement by my professional colleagues and assure you that going forward, your business will never be the same.
“The two companies have recorded their names in the minds of the brokers, who incidentally control the largest chunk of business in the industry,” she said.
She said : “We are not resting our oars and will still forge ahead by ensuring that no insurance policy will be placed without the contribution of the brokers.
“Until the public understands the role of the brokers, the allegation of non-payment of claims and other consequential image challenges will remain.”
In her address, the Acting-Chief Executive Officer (CEO), Heirs Insurance Limited, Dr Adaobi Nwakuche, acknowledged NCRIB as an important stakeholder in insurance business by liaising between customers and insurance firms.
Nwakuche told the brokers that the insurance firm was on a mission to democratise insurance and make it accessible to  everyone.
 “To achieve this, we paid careful attention to the needs of every customer across all the social circles while building our products.
“We are pleased to say that we have simple and affordable insurance plans for everyone and we are confident that with the support from NCRIB, we will deliver on our promise of excellent service delivery to the public,” she said.
In his remark, the Chief Executive Officer, Hiers Life Assurance, Mr Niyi Onifade, said the newly launched underwriter was bringing simple and affordable products to the market.
Onifade noted that collaboration with NCRIB would advance both companies’ ambition of providing customers with insurance service that was simple, quick, accessible and reliable.
“Our mandate is to provide excellent service to customers, which is our priority, and we understand that to achieve it, we need to collaborate with bodies that believe in similar vision of always putting the customers first.
“The NCRIB represents this and with them as partners, we can jointly move the business of insurance forward,” he said.
Over 300 brokers across the country were present at the event
Patoma Admin by — July 7, 2021 in Insurance 0
Royal Exchange says subsidiaries approval delay cause inability to submit results to NGX

By Favour Nnabugwu

 

 

Royal Exchange Plc has explained the reason for the company inability to present its Audited Financial Statement and Unaudited Financial Statement to the Nigerian Exchange Limited during the stipulated period.

The company says the delay in the approvals of its subsidiaed was the reason for the organisation inability to meet up with the Nigeria Stock Exchange deadline

In a statement signed by the company secretary, Ngozika Onu, the management of Royal Exchange Plc sought to advise the company’s shareholders as well as the investing public that the company is unable to submit its Audited Financial Statement for the year ended December 31, 2020, and Unaudited Financial Statements for the period ended March 31, 2021, to the Nigerian Exchange Limited (NGX) within the timeframe required by the NGX.

The disclosure stated that the Year-end audit exercise for the group is yet to be concluded as the insurance and finance subsidiaries are still awaiting approvals from their regulatory bodies, that is, the National Insurance Commission (NAICOM) and the Central Bank of Nigeria (CBN).

The company further assured its shareholders and the investing company, stating that upon the approval of the respective financial statements of both subsidiaries, the consolidation of the Group’s accounts for the year ended December 31, 2020, will be concluded and released to the public.

In addition, the Unaudited Financial Statements for the period ended March 31, 2021 will be prepared and approved by the Board of Directors for submission to the NGX and Securities Exchange Commission (SEC).

The company stated that it is optimistic that the pending financial statements would be made available and submitted on or before September 30, 2021.

Patoma Admin by — July 7, 2021 in Insurance 0
Faces @ Heirs hosted NCRIB Brokers Evening in Lagos

CAPTIONS:

L – Managing Director, Heirs Life Assurance Limited, Niyi Onifade; President, Nigerian Council of Registered Insurance Brokers, Dr. (Mrs.) Bola Onigbogi and Acting Managing Director, Heirs Insurance Limited, Dr. Adaobi Nwakuche at the event.

 

L – Vice President, Nigerian Council of Registered Insurance Brokers, Tunde Oguntade; Deputy President, Rotimi Edu; President, Dr. (Mrs.) Bola Onigbogi; Managing Director, Heirs Life Assurance Limited, Niyi Onifade; Acting Managing Director, Heirs Insurance Limited, Dr. Adaobi Nwakuche and members of staff of Heirs Insurance at the event

Patoma Admin by — July 7, 2021 in Insurance 0
AXA to consolidate its Asian and African

By admin

 

 

AXA is combining it business in Asia with the ones in Africa

Previously, the AXA Asia business included the markets of Hong Kong, mainland China, Japan, South Korea, Indonesia, the Philippines and Thailand.

This will now expand to include the African and Middle East markets of Algeria, Cameroon, Egypt, Gabon, Côte d’Ivoire, Lebanon, Morocco, Nigeria and Senegal. Additional Asian markets, namely India, Malaysia, Singapore and Vietnam, will also be added under the umbrella, which will be known as AXA Asia & Africa.

According to AXA, this move is part of its new strategic plan “Driving Progress 2023”, which seeks to harness the rapidly growing markets across Africa and Asia, with special focus on health, as marked by the recent opening of AXA OneHealth and its 16 clinics across Egypt. This, the company said, reflects its commitment to an inclusive vision of health equity, with improved health outcomes for all.

The AXA Asia & Africa business will also incorporate AXA Emerging Customers, the insurer’s unit focused on closing the protection gap in the low-income to mass market segments. Customers in these segments are often under-insured due to a lack of access and familiarity with relevant and affordable insurance products. By 2023, AXA Emerging Customers aims to protect 25 million customers as their first insurer, through partnerships with leading institutions from both public and private sectors.

“I am excited to be taking on oversight of our mature and emerging markets across Asia and Africa, as well as Lebanon,” said Watson. “This will enable AXA to deliver more holistic solutions that span the spectrum of customer needs, enabling us to fulfil our role as being partners in their life journey. We will continue to develop innovative, holistic solutions that will be tailored to meet the unique needs of each market. I look forward to strengthening AXA’s footprint in these key markets and consolidating our leadership in the industry.”

Watson became the insurer’s Asia CEO in 2018, presiding over a period of strong growth in the region. Before joining AXA, he held senior leadership roles in AIA and AIG across multiple continents, including Africa. Gordon is also the founding chair of the Hong Kong branch of Shared Value Initiative, a non-profit organisation that seeks to help businesses in aligning profit and purpose to address social issues.

 

 

 

Patoma Admin by — July 6, 2021 in Insurance 0
Ghana insurance industry proffers stiffer penalty for reckless drivers

By admin

 

 

The Ghana Insurers Association (GIA), has called for stiffer penalties as statistics show that the impact of deaths caused by motor accidents was estimated at 2 percent of the country’s GDP.

Mr Kingsley Kwesi Kwabahson, GIA CEO, who made the call recently in Accra, said the association remained concerned about the staggering statistics on deaths and severe injuries associated with accidents through reckless driving on the roads, reported Ghanaweb.

He said the statistics on road crashes issued by the National Road Safety Authority (NRSA), showed that there were 10,808 crashes and 2,073 fatalities in 2019, which represented an increase of 9.8 percent and 2.6 percent respectively in crashes and fatalities over 2018.

He said that pedestrians formed the road user class with the highest number of deaths and severe injuries from motor accidents, accounting for 36.7 percent of the total number of road accident victims, followed by motorcyclists at 28 percent, and bus passengers at 14.4 percent

The Motor Traffic and Transport Department of the Ghana Police Service also estimated that there had been a total of 4,009 traffic accidents with 771 deaths in the first quarter of 2021.

Patoma Admin by — July 5, 2021 in Insurance 0
Zimbabwe regulator launches integrated capital, risk programme for insurers

By admin

 

 

The Insurance and Pensions Commission (IPEC) has launched a revamped solvency management system for the insurance industry.

Dubbed Zimbabwe Integrated Capital and Risk Programme (ZICARP) Framework, the new system aims to, among other objectives, improve consumer protection and assurance to policyholders and beneficiaries, says IPEC in a statement.
ZICARP also provides incentives to insurers to measure and properly manage their risks, which enables them to absorb significant unforeseen losses.

The framework introduces a principle-based approach to regulation, moving away from a rules-based approach, to ensure better allocation of capital resources in insurance firms, align supervision of all insurance entities and make the sector attractive to investors.

The launch of the framework on 22 June 2021 is a culmination of the work IPEC began in 2015. Upon the launch, insurance companies will begin a phased implementation of the framework.

Insurers are expected to report on ZiCARP from 2022 onwards. ZiCARP is split into three pillars:

quantitative aspects where there is a need for insurance entities to determine Solvency Capital Requirement (SCR) and Minimum Capital Requirement (MCR);

Own Risk and Solvency Assessment (ORSA) that is expected to be an integral part of business strategy and must be considered when making strategic decisions;

disclosure requirements under which, various returns will be submitted quarterly and annually to the regulator.

Patoma Admin by — July 5, 2021 in Insurance 0
Egypt insurance industry to maintain 16% growth in 2020

By admin

 

The Egyptian insurance sector is forecast to grow at the same rate this year as the 16 percent increase in premium income it showed last year, according to the theFinancial Regulatory Authority (FRA).

Mr Reda Abdel Moaty, vice chairman of the FRA area of growth is travel insurance in which premiums are expected to reach EGP1bn ($64m) a year, compared to EGP60m previously. He explains that there is a new requirement for all Egyptian passport holders to buy the cover whenever they travel. A travel insurance pool has been formed to distribute the risk.

He stresses that the FRA has taken many measures to counter the effects of COVID-19 on the insurance sector, including deferring premium payments by insurance clients and encouraging social distancing.

The regulator has also allowed the expansion of the electronic issuance of some standard insurance policies and the distribution of insurance policies through the branches of the Egyptian Post and through the Nasser Social Bank, reported Shorouk News quoting Dr Abdel Moaty.

He reveals that the FRA is studying microcredit insurance to cover the risks of non-payment. The study is carried out in coordination and cooperation with the Microfinance Union. The volume of microfinance in Egypt is EGP20bn, and the average insurance premium rate is 1.5-2%.

Patoma Admin by — July 5, 2021 in Insurance 0
NAIC subsidises insurance with 50% subsidy to farmers

By Favour Nnabugwu

Nigerian Agricultural Insurance Corporation (NAIC) has said the farmers have ño need the fear about insuring the farm produce as the corporation give 50 percent subsidy to farmers

Managing Director of NAIC, Mrs Folashade Joseph, had explained to that the NAIC Act Cap. N89, Laws of the Federation of Nigeria empowers NAIC to underwrite agricultural risks and subsidise the premium chargeable on some categories of crop and livestock items by as much as 50 per cent.

She, however, said when agricultural projects are financed through credit facilities from whatever sources, they must be insured with NAIC.

On what farmers could insure against at NAIC and how to go about it, the NAIC boss said the corporation insures agriculture across the value chains, covering risks associated with primary production, transportation, processing, and storage (silos), among others.

She explained that “the perils covered by crop policy are fire, lightning, windstorm, flood, drought, pests/diseases, and invasion of the farm by wild animals.

“Losses caused by negligence or willful damage are not covered. Similarly, political risks and losses resulting from social risks like riots, mutiny, revolution are not covered under the scheme.”

In addition, Joseph said the corporation’s website also contains salient information that could guide the farmers on how to access NAIC policies.

She said: “However, all a farmer needs to do is call or go to the branch office nearest to him/her and give the detailed description of his/her farm, and NAIC officials will be there in no time. The farmer will need to complete the proposal form, after which NAIC will carry out a pre-inspection visit to the farm to assess it.

Once the farm is assessed, the premium payable would be communicated to the farmer. After the premium has been paid, the policy would be issued. It is as simple as that.”

Subsidy of 50 per cent applies to crops such as rice, maize, yam, cassava, sorghum, guinea corn, beans, soya beans, and indeed all food crops. Crops such as cashew and cocoa are on a commercial basis, and therefore attract no subsidy.

Subsidised livestock includes poultry, cattle, goats and sheep, rabbits, and fishery, among others, but dogs, camels, donkeys, and horses are categorised as commercial with no subsidy, she disclosed.

For a farmer to get compensated for farm losses, NAIC said it takes a maximum of 14 days to pay genuine claims if complete documents are made available to the corporation by the farmers or their agents. Some claims take less.

Patoma Admin by — July 5, 2021 in Insurance 0
Royal Exchange, CHI, Mutual Benefit, Linkage, Regency shine at NSE half year results of performing stocks

By Favour Nnabugwu

 

The Nigeria Exchange Group Limited (NGX) started 2021 on a good note as the last trading day of 2020 earned the local bourse a warm ovation by reflecting over 50 percent growth year–to–date.

Although the NGX began the year with an air of optimism, its performance has been beset by a number of macroeconomic factors that have influenced the investment decisions of retail and institutional investors and affected local and foreign direct investments.

In the first half of the year 2021, the All-Share Index (ASI) of Nigeria’s stock market declined by 7.87 percent from 41,147.39 to 37,907.28 points.

Despite the negative movement, 54 of the 168 companies listed on the exchange appreciated with the top 10 stocks gaining no less than 61 percent year-to-date. It is worthy of note that most of the stocks on the list of the best-performing stocks are insurance companies and none are banks.

The best-performing stocks for the first half of the year 2021 are as follows:

Royal Exchange Plc

Royal Exchange Plc recorded a year-to-date increase of 134.62 percent in its share price, from N0.26 at the start of the year to N0.61. The financial services company in Q4 2020, realized a 7 percent increase in income and 112% growth in Profit after Tax.
Royal Exchange Plc is the only financial services company that ranked amongst the top 10 best-performing stocks in the half-year 2021. The company is engaged in providing life, healthcare and general insurance, financing, asset management, trusteeship and microfinance banking services.

Regency Assurance Plc

Regency Assurance Plc engages in the provision of general insurance cover to corporate and individual clients.

In Q1 2021, the company recorded an impressive increase in Net Profit of 95.79 percent. As a result, earnings per share went up by 95.73 percent from N3.28 to N6.42. The company share price grew by 109.09% from N0.22 to N0.46 year-to-date.

Consolidated Hallmark Insurance (CHI Plc

Consolidated Hallmark Insurance (CHI Plc) in its recently released unaudited financials for the first quarter (Q1) ended 31 March 2021 recorded a 30 percent growth in its Profit-Before-Tax (PBT), from the N346 million recorded as at the Quarter Ended 31st December 2020 to N449 million during the period ended 31st March 2021.

A review of the key financial metrics including Gross Premium Income, Assets, Investment Income, amongst others, highlights the firm’s commitment to delivering sustainable returns to its shareholders despite the harsh operating environment at the macroeconomic level.

Details of the result show that the Group, comprised of General Insurance, Micro Insurance (Life), Health Management, and Financing Company business delivered a Gross Premium of N3.229 billion representing a 15 percent growth when compared with the N2.805 billion reported in 2020. The underwriting profit recorded in the period is N918 million, an improvement of 16 percent when compared with the N789 million recorded in the previous quarter of 2020.

In the same vein, the Investment Income grew to N285 million from the N224 million recorded in Q1 2020, which represents a growth of 27 percent. The Group’s Total Assets also grew to N15.17 billion, up 6 percent when compared to N14.31 billion opening balance.

Mutual Benefit Assurance plc

Mutual Benefits Assurance Plc said it has recorded a seven per cent growth in its gross premium written to N19.98 billion in 2020 from N18.69 billion recorded in 2019.

According to a statement by the firm’s Head, Corporate Communication, Ellen Offo, the company’s 2020 audited results released on the floor of the Nigerian Exchange Group (NGX), showed that profit after tax rose by 41 per cent from N3.61 billion in 2019 to N5.10 billion in 2020 while profits before tax stood at N5.04 billion, representing a 34 per cent increase from N3.75 billion in 2019.

The company also recorded a 74 per cent growth in shareholders’ funds which rose to N23.35 billion from the N13.43 billion of 2019. Total Assets also grew by 22 per cent from N67.78 billion in the previous year to N82.87 billion in the year under review.

Insurance contract liabilities for the year under review stood at N17.57 billion, a 25 percent increase from the previous year’s N14.10 billion.

The combined claims paid by Mutual Benefits Assurance Plc. and it’s subsidiary; Mutual Benefits Life Assurance was N19.37 billion representing an eight per cent decrease on the claims paid last year.

A breakdown of the claims profile for 2020 reveals that the Life business paid a total of N3.54 billion in Group Life claims, Maturity claims accounted for N7.76 billion while for Credit Life claims were N140 million. Other Claims paid include individual death claims, annuity claims, surrender claims and partial withdrawal claims at N213 million, N44 million, N3.65 billion and N870 million respectively.

Linkage Assurance plc

The write could lay hand on the company half years result.

Linkage Assurance in its full year 2020 financial results recorded gross written premium of N8.3 billion, an increase of 28 per cent year-on-year from N6.5 billion in 2019, while total assets also rose by 18 per cent year-on-year in 2020, to N33.9 billion, compared to N28.7 billion in 2019
The company also witnessed significant improvement in other indices, with underwriting profit growing by 102 per cent, from N0.4 billion in 2019, to N0.8 billion at the end of 2020. Similarly, its profit before tax during the period under review was N2.5 billion, compared to N1.3 billion in 2019. This represented an 89 per cent year-on-year growth, while profit after tax was N2.4 billion, increasing by 65 per cent from N1.5 billion in 2019.

 

Patoma Admin by — July 4, 2021 in Insurance 0