All Posts in "Insurance"

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

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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

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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

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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
Insurance committee to review adequacy 3rd party motor insurance

By Favour Nnabugwu

 

 

The Insurers Committee has received the permission of the National Insurance Commission (NAICOM) to review and determine the adequacy of the current premium for the third-party motor insurance policy.

This is just as the Insurers Committee through its publicity and communication unit announced its resumption of activities and the reduction of its subcommittees which was formerly Eight in number to Six.

Third party motor insurance is a form of insurance under which the insurance company agrees to indemnify the insured person, if he is sued or held legally liable for injuries or damage done to a third party.

It covers accidental damage caused by someone’s vehicle to another person’s vehicle or property.

The Six man publicity and communication committee headed by the Vice Chairperson, Nigeria Insurance Association Mrs Ebelechukwu Nwachukwu made the disclosure while speaking with Newsmen Today in Lagos.

She said that the Nigeria Insurers Association’s technical subcommittee in Conjunction with NAICOM will be having a discussion to determine if there will be a change in the N5000 premium of the third-party insurance policy.

On the basis for the review, she said “when you have a third-party as a policy, it is necessary that from time to time that you will revisit it and the technical and actuarial people will start working on that.”

She assured that the committee which was disrupted by the COVID-19 Pandemic will continue with its activities hence forth adding that the subcommittee now consist of the Corporate governance and ethics, Market Development, Customer Services, Technical and Publicity and Communication subcommittee.

On its rebranding project, she said “despite the suspension of the project, the committee will at the right time resuscitate it and the structure will be different than what it was.

On IFRS 17, She said that the commission has urged all operators to ensure that their data analysis and requirements are ready for the implementation of IFRS 17.

“IFRS 17 will change the note at which numbers are accounted for going forward, it is a very serious accounting structure that we need to take very serious.”

She added that the operators are advised to show more interest in micro insurance and takaful insurance.

“The commission has encourage us to review the guidelines and get back to them if there is any issue on the operators side.”

“Anything that will make the people show more interest on micro insurance the commission will like to get more feedback.”

The Insurers Committee is a body consisting of the National Insurance Commission and chief executive officers of all underwriting Insurance companies in Nigeria. The Committee operates under a mandate to activate the industry’s change agenda, and strategically reposition the Insurance industry

Patoma Admin by — July 1, 2021 in Insurance 0
Niger Insurance creates customer engagement forum to address situation

By Favour Nnabugwu

The Board and Management of Niger Insurance Plc has a customer engagement forum to address in a bid to address customer concerns, complaints and enquiries especially on the present status of the company.

The company put out a public notice addressing the publication of the Nigerian Insurers Association (NIA) regarding the expulsion of member companies who were allegedly not meeting obligations to policyholders of the companies.

The notice which was addressed to the public and the NIA stated that the company had paid out the sum of N1.16 billion to policyholders as claims from 2020 to date. It further stated that the company plans to liquidate some of its real estate assets to help meet its obligation and further alleviate the plight of policyholders.

The company has assured the public and its policyholders that it is currently in talks with the Association to resolve the issue at hand as it is in the interest of all associated parties.

Niger Plc has further guaranteed it will remain a responsible and committed corporate organization as it ensures that all obligations especially in the areas of claim payments are met according to the provisions of the insurance practice.

Patoma Admin by — July 1, 2021 in Insurance 0
Global Atlantic signs $8bn deal with Ameriprise

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Life and annuity insurer Global Atlantic Financial Group has entered into a $8.0 billion annuity reinsurance transaction with financial services company Ameriprise Financial.

The deal is comprised primarily of fixed-rate and income annuities alongside a smaller component of fixed index annuities, and was carried out through Global Atlantic subsidiaries Commonwealth Annuity and Life Insurance Company and First Allmerica Financial Life Insurance Company.

Under the agreement, Ameriprise will cede $8 billion in annuity reserves and retain administration of the policies.

The deal is expected to close in July 2021 and will generate approximately $700 million of excess capital for Ameriprise, whose subsidiary RiverSource Life will retain account administration and servicing of the policies following completion.

In addition, Global Atlantic said that its Ivy co-investment vehicle will invest alongside Commonwealth Annuity and First Allmerica.

“We are always happy to find new ways to help existing clients continue to meet their financial objectives,” said Manu Sareen, President of Global Atlantic’s Institutional business. “Our approach has always been to build long-term relationships. By truly knowing our clients and understanding their objectives, we can customize more meaningful solutions for their needs.”

“This transaction further advances our consistent strategy of serving the needs of our clients comprehensively, while driving growth through our lower-capital, fee-based businesses and freeing-up capital to generate shareholder value,” added Jim Cracchiolo, Chairman and CEO at Ameriprise Financial.

Credit Suisse acted as financial advisors and Debevoise & Plimpton LLP served as legal counsel to Global Atlantic in connection with this transaction.

And for Ameriprise, Goldman Sachs acted as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel.

Patoma Admin by — July 1, 2021 in Insurance 0
Thomas Olunloyo appointed as Deputy CEO of L&G America

By admin

 

Thomas Olunloyo has been announced as the new Deputy Chief Executive Officer (CEO) of Legal & General America (LGA) reporting to Mark Holweger, President and CEO.

Effective July 1st, 2021, Olunloyo takes on responsibility for leading and coordinating all aspects of the company’s business associated with digital transformation and business development.

As L&G looks to capitalise on growth opportunities in the U.S. marketplace, Olunloyo will be a key member of the executive leadership team and head up the strategic direction and management of the business with a focus on IT, marketing, operations, and underwriting and actuarial.

Most recently, Olunloyo has served as CEO of L&G Re since 2017, having served as the reinsurance division’s Chief Actuary and Chief Investment Officer since 2014.

During his time with L&G Re, Olunloyo led the firm’s development into new markets and new technologies, including spearheading the group’s first pension risk transfer transaction in Canada and embracing the use of blockchain and automation for the PRT business.

Before joining L&G Re, he worked as a Pricing and Product Development Actuary at MetLife in the UK.

Commenting on his new role, Olunloyo said: “It’s an exciting time to be joining our LGA business, which has a great opportunity for tech-driven growth in the US life market. I am looking forward to the challenge of working in a new market, serving customers directly and building strong relationships with my new team.”

Holweger added: “We are thrilled to be welcoming Mr. Olunloyo to our team, bringing his leadership skills and proven track record of embracing new technologies to drive business performance.”

Patoma Admin by — July 1, 2021 in Insurance 0