All Posts in "Insurance"

Regency, Mutual Benefit, Linkage stocks lift Insurance Index to 197.46 index points

By Favour Nnabugwu

The growth in the Nigerian Stock Exchange Insurance Index for the week can be attributed to the appreciation of most insurance stocks such as; Regency Assurance, Mutual Benefits Assurance and Linkage Assurance Plc which all appreciated with a minimum of 10 percent for the week.

According to the report, the trio (Regency, Mutual Benefits and Linkage) recorded an increase of 22.2 percent, 11.43 percent and 10 percent respectively, placing the aforementioned firms in the top 10 price gainers for the week.

Recall that during the week, five insurance companies which comprises of; AIICO, NEM, Regency Assurance and 2 others gained a total of N2.29 billion in value for just one day, as earlier reported by Nairametrics.

The NSE All-Share Index and Market Capitalization depreciated by 1.74% to close the week at 38,648.48 and N20.221 trillion respectively.

Sequel to this, most indices finished lower, except NSE Mainboard, NSE Insurance, NSE ASeM, NSE MERI Growth, NSE Consumer Goods and NSE Oil/Gas Indices, which rose by 0.37 percent, 2.84 percent, 0.12 percent, 0.24 percent, 2.18 and 0.59 percent while the NSE Sovereign Bond Index closed flat.
The NSE Insurance Index returned 4.2 percent on a Year-to-Date basis.

On a general note, the Financial Services Industry traded 1.2 billion shares valued at N10.272 billion in 12,518 deals for the week(measured by volume); thus contributing 71.64 percent and 43.64 percent to the total equity turnover volume and value respectively Insurance: AIICO, NEM, 3 others gain N2.29 billion in market capitalisation

The Nigerian Stock Exchange Industrial Index at the close of trading activities for the second week in the month of March, closed on a relatively bearish note.

At the close of trading activities on the Nigerian Stock Exchange on the 12th March 2021, the industrial index declined by 1.03 index points, to close at 1923.55 index points for the week.

When compared to the overall performance of the market, the NSE Industrial index fared better as it declined by –0.05%, while the NSE All-Share index and market capitalization depreciated by 1.74 percent to close the week at 38,648.48 and N20.221 trillion respectively.

What you should know

The NSE Industrial Index was designed to provide an investable benchmark to capture the performance of the Industrial Sector. It comprises the most capitalized and liquid companies in the industrial sector and is based on the market capitalization methodology

The index monitors the performance of ten industrial companies on the Nigerian Stock Exchange which includes Dangote, BUA, Lafarge Cement and others.

The overall performance of the companies for the week was relatively bearish, as the index closed on a positive note with three losers relative to one gainer.

Investors of the banking giant lost a total of N51.3 billion in the period under review.
Meanwhile, UBA posted a profit after tax of N113.8 billion in 2020 according to the audited full-year report for the year 2020.

The profit after tax posted in 2020, represents a 27.7% increase compared to N89.1 billion recorded in the previous year.
Ecobank Transnational Incorporation followed closely with a decline in market capitalisation by 14.17% in the review period.

A total of N15.6 billion was lost by investors of the banking giant between December 31st, 2020 and March 12, 2021.
Ecobank also posted a decline in profit for the year 2020, recording a year-on-year decline of 64% to stand at N35.9 billion compared to N99.46 billion recorded in 2019.Top gainers

Seplat Petroleum Development Company Plc gained the highest in the period under review as the stock price grew by 34.23% from N402.3 recorded on the last trading day of 2020 to N540 as of 12 March 2021, leaving its total market capitalisation at N317.8 billion.

The company’s shares grew by double figures despite the N30.71 billion loss recorded in its 2020 financial year.
Although the reason for this increase cannot be exactly established, it can be associated with the recovery of oil prices to pre-pandemic levels

Seplat also successfully raised US$260 million in debt to fund the completion of its ANOH Gas Processing Plant (“ANOH”). It is expected that this plant will help Nigeria to accelerate its transition away from small-scale diesel generators to cleaner, less expensive fuels such as natural gas for power generation.

Guinness Nigeria Plc, gained a total N9.86 billion between the period under review, representing an increase of 23.68%.

The company’s market capitalisation increased from N41.62 billion recorded as of December 31st, 2020 to N51.47 billion as of 12th March 2021.

Guinness recorded impressive growth in the Stock market despite the N317.42 million loss the Group posted in its Q2 2020 results released on 28 January 2021.
Flour Mills Nigeria Plc, followed with a gain of 14.23% to stand at N121.78 billion as of March 12th, 2021.

 

Patoma Admin by — March 14, 2021 in Insurance 0

Agusto & Co. Limited, the pan-African credit rating agency and the foremost business information provider has released its 2021 insurance industry report. The 2021 edition of the annual report provides a comprehensive review of the insurance landscape in Nigeria and the near term expectation for the Industry.

Contained in the report is a review of the coronavirus pandemic, as it affects the Nigeria insurance industry and strategies adopted by insurers to minimise the associated disruptions while optimising the opportunities provided by the pandemic. Agusto & Co. estimates a 15% growth in Gross Premium Income (GPI) for the financial year ended 31 December 2020. Innovation in product distribution induced by the pandemic, regulatory-backed opportunities including the digitisation of marine insurance certificates and increasing awareness of the benefits of insurance products were some of the GPI growth drivers during the 2020 financial year.

According to Agusto & Co., the violence that trailed the #EndSARS protest in October 2020 adversely impacted the Industry in terms of additional claims, which in turn impaired profitability for the 2020 financial year and would moderate the performance of some insurers in 2021. Nonetheless, the riot that trailed the protest emphasised the importance of insurance products, particularly with the absence of a robust social security system in Nigeria.

According to Agusto & Co., the violence/riot that trailed the protest could be a catalyst for insurance uptake, given that the insurance penetration rate has remained less than 1% in Nigeria.

Agusto & Co. expects the on-going recapitalisation exercise to change the structure of the Industry. The persistent naira devaluation has reduced the strength of the Industry’s capital since the last recapitalisation exercise in 2007. Although some insurers have strengthened their capital base through earnings retention, the ability of most Industry operators to solely underwrite large ticket transactions has dwindled based on the lower value of the capital in USD terms. As at 31 December 2020, the Industry had an estimated capital base of $1 billion, significantly lower than $2.2 billion recorded as at 31 December 2007. As a result, the National Insurance Commission (NAICOM), the apex regulator in the Industry, raised the minimum capital to ₦8 billion (from ₦2 billion), ₦10 billion (from ₦3 billion), ₦18 billion (from ₦5 billion) and ₦20 billion (from ₦10 billion) for life insurers, non-life insurers, composite insurers and reinsurance firms respectively. The recapitalisation exercise has suffered some setbacks particularly as the COVID-19 pandemic ravaged the global economy, Nigeria inclusive. Consequently, NAICOM postponed the deadline for the recapitalisation exercise which was later stratified into two phases; December 2020 and September 2021. In addition, litigation by some Industry operators and aggrieved shareholders resulted in the postponement of the December 2020 deadline for the first phase of the recapitalisation exercise.

Notwithstanding the setbacks, Agusto & Co. believes the recapitalisation exercise could be a watershed in the Industry. In addition to the benefits accruing from a larger capital base from a risk underwriting perspective, improved investment management practices will be upheld by a larger investment portfolio driven by a need to generate adequate returns. The recapitalisation exercise has elicited mergers and acquisition transactions in the Industry. Agusto & Co. anticipates an uptick in these transactions as the deadline draws near. The shareholding structure of most insurers is expected to change in the near term as some investors leverage the exercise to either gain or increase exposure to the Industry. With the gradual rebound of the global economy, more foreign investors are expected in the Industry, given that the naira devaluation has reduced the value of insurance companies (in USD terms), despite the undisputed opportunities in the Nigerian insurance industry.

The entry of new players after the embargo that lasted over a decade was a key point in the Industry. In November 2020, six new operators were licenced in the life, non-life and reinsurance segments of the Industry. The firm anticipates the entry of more players, particularly from existing financial institutions seeking opportunities for diversification of income. Agusto & Co. believes that the new players will intensify competition in the Industry. New insurance products and business practices are also expected from these new players.

Agusto & Co. expects a better performance by the Industry in the near term on the opportunities accruing from the pandemic and the #Endsars is optimised. The gradual increase in the prevailing interest rate will also support the investment income of insurers. It is expected that more innovative product distribution channels will be introduced to reduce the dominance of insurance brokers. Notwithstanding, Agusto & Co. believes the insurance brokers will remain strategic to the Nigerian insurance industry given the wholesale focus of the Industry.

Patoma Admin by — March 14, 2021 in Insurance 0

By Favour Nnabugwu

AIICO, NEM Insurance, Consolidate Hallmark, LASACO and Regency have gained a total of N2.29 billion in value last weekend  despite an overall bearish return in the NSE Market.

The five insurance companies which coincidentally are the only insurance companies that recorded positive growth recorded in Thursday March 11, 2021

Inference from the data of the Nigerian Stock Exchange market, indicates that the gains are due to appreciation in the share prices of the five insurance firms, part of which acted as a catalyst to lift the NSE Insurance Index by 0.69 percent as at close of business that Thursday..

AIICO

AIICO Insurance which is the second most capitalized insurance company on the floor of the Nigerian Stock Exchange printed one of the highest gains today, as its share price appreciated by 4.27 percent to close at N1.22.

The increase in the share price acted as a catalyst in the appreciation of the firm’s market capitalization by about N1.033 billion, from N24.19 billion recorded as at close of business on Wednesday to N25.22 billion.

It is also pertinent to note that a total of 19.67 million units of the firm’s shares were traded on Thursday (the highest recorded by the firm since January 4, 2021), indicating a surge of about 179.4 percent when compared to the units traded a day earlier.

NEM Insurance

NEM Insurance Plc share price appreciated by 5.1 percent to close at N1.85 per share. This resulted in an increase in the firm’s market capitalization, from N17.66 billion as at the close of business on Wednesday to N18.56 billion, implying an increase of about N902.97 million for the aforementioned period.

Investors traded about 2.95 million units of the firm’s shares, indicating a surge of about 422.7 percent when compared to the units traded in the previous day.

Consolidated Hallmark Insurance

Consolidated Hallmark Insurance posted the highest increase by any insurance stock on Thursday. It recorded a 7.41 percent increase in its share price which closed at N0.29. The increase trickled down to the market capitalization which added N214.09 million, from N2.89 billion posted a day earlier.

It is worthy to note that a total of 978,670 units of the firm’s shares were traded on Thursday, indicating a decline of 73.95 percent when compared to the units traded previously.

LASACO

LASACO Assurance Plc posted a 3.28 percent increase in its share price which closed at N1.26. The increase played a pivotal role in the advancement of its market capitalization, from N2.24 billion as at the close of business on Wednesday to N2.31 billion, implying an increase of about N73.35 million.

In lieu of this, a total of about 1.16 million units of shares were traded in the bourse, indicating a decline of about 29.8 percent when compared to the units traded a day earlier.

LASACO Assurance Plc had earlier reported the completion of its share reconstruction exercise, involving about 7.3 million ordinary shares. This exercise subsequently raised the initial share price of the firm to about N1.68.

Regency Assurance

Regency Assurance Plc gained about N66.69 million in market capitalization, after its share price appreciated by 3.45 percent to close at N0.30. The firm’s market capitalization as at close of business on Thursday stood at N2 billion.

A total of about 240,667 units of the firm’s shares were traded

Patoma Admin by — March 14, 2021 in Insurance 0
Universal Insurance awaits microinsurance licence from Naicom

By admin

Universal Insurance Plc has mapped out plans to take insurance to the grassroots as the firm eyes microinsurance license to get to launch out.

The Managing Director of the company, Mr Ben Ujoatuonu stated in Lagos that The firm has a lot of activities lined-up for the firm’s 60th anniversary.

He also remarked that the board had granted approval for the firm to have a microinsurance company.

He however stated that the firm had applied for an operational licence for the business and expressed optimism that the request would be approved by the National Insurance Commission (NAICOM

He noted that the company’s board had granted approval for the opening of the branches in Kano, Uyo and a new outlet in Lagos very soon.

Ujoatuonu, who was happy for the feat the company had achieved in the past 60 years, said he is one of the beneficiaries of firm’s education support, stressing that as part of the firm’s Corporate Social Responsibility (CSR), it offered her staff to lecture insurance for free in Enugu State University (ESUT) and Institute of Management and Technology (IMT), Enugu.

According to him, “The endowment, helped in raising many insurance professionals, who are today driving the insurance industry to lofty heights”

He maintained that due to the robust operational processes entrenched by the firm, the COVID-19 lockdown and #EndSARS protest didn’t have much impact on the company’s revenue, which he said stood at 80 per cent in 2020.

He informed that the 80 per cent revenue earned last year was aided by the firm’s robust Information and Communication Technology (ICT) infrastructure, stressing that the company stands amongst the top five in Alexa rating.

He said the firm is presently active on all social media channels, adding that the channels are also leveraged to sell policies to clients.

According to him, “The firm would soon launch its Unstructured Supplementary Service Data (USSD) which will also be used to sell policies to esteemed customers”

He said the firm’s total assets presently stand at N11 billion and shareholders’ fund N9 billion, whilst imploring on brokers and the insuring public to entrust their risks to the firm.

Ujoatuonu posited that the firm has massively invested in retail business, as it is poised to largely deepen that segment of insurance business.

According to him, “The firm had in recent times, evolved and got approval from NAICOM for eight innovative products, stressing that the products are presently doing well in the market.”

He said the products are targeted on specific people especially those at the grassroots and that the means of paying premium have also been designed in a simple form to stem hassles.

“Universal Insurance is growing stronger and it is made up of averagely young people. We have experience of the old and vigour of the young,” he added.

Patoma Admin by — March 13, 2021 in Insurance 0

By admin

Generali’s net profit fell by 34.7 percent in the financial year ended 2020 to €1.74bn, from €2.67bn in 2019.

The results were impacted by a €332m liability management transaction, a contribution to the Extraordinary International Fund for Covid-19 and €287m of investment impairments, mostly in H1.

The group’s operating result was up 0.3 percent to €5.2bn. The impact of Covid-19 was estimated at €123m.

The P&C operating result was up 19.4 percent to €2.46bn in 2020, but down 16.1 percent on the life side to €2.63bn.

Generali’s P&C combined ratio improved 3.5 percentage points to 89.1percent

Group-wide gross written premiums were up 0.5 percent to €70.7bn. They were stable in P&C at €22.15bn.

CEO Philippe Donnet said Generali delivered “excellent results”.

“For the second consecutive year, we have achieved the group’s best ever operating result,” he said.

Adding: “We have entered the final year of our strategic plan and are well positioned to achieve all of the objectives of ‘Generali 2021’. We have defined and implemented a new organisational structure to ensure, not only the success of this plan, but to also prepare for the next strategic cycle.”

Patoma Admin by — March 12, 2021 in Insurance 0

By admin

Universal Insurance Plc journey in the three scores of its existence recalled the relocation of the head office from Enugu to Lagos change the company for good.

The Chairman, Engr. Cyril Umunna Ajagu, while narrating his experience with the company in Lagos stated, “I remember when I first came to invest in Universal Insurance sometime in 2003. It can only be described as a divine arrangement. The Company was going through turbulent times. Workers had not been paid for a very long time and were therefore very disillusioned.

“I came on board and to the glory of Almighty God, we forged ahead. The first decision we took was to reposition the Company from being a regional player to a national player. And this we achieved by relocating the head office from Enugu to Lagos and thus began our progressive journey through thick and thin.

“We grew stronger and during the recapitalization exercise organized by the National Insurance Commission, NAICOM in 2007, we not only recapitalized but we successfully acquired three other insurance companies – African Safety Insurance Company; Oriental Insurance Company and United Trust Assurance Company Limited.
On 14th December, 2007, we became a Public Liability Company and two months later, on the 11th February, 2008, we became listed on the Floor of the Nigerian Stock Exchange. Universal Insurance has since blossomed and we keep moving from strength to strength.

These, he said was only made possible by God. He thanked all those who have in one way or the other contributed and are still contributing to the success story.

Speaking further the managing director/ CEO Ben Ujoatuonu noted that in the past 60 years the company has continued to strengthen and sustain the legacy of the founding fathers.

Accordingly him “for the past 60 years we have been consistently in keeping to our words through creating value and meeting claims of our teeming customers. I assure you that we will Continue and not rest in our plans in satisfying our numerous customers.”

With an asset base of over N11billion and shareholders fund of over N8billion, universal insurance said they are ever ready to satisfy the needs of their customers.

He noted that at 60 the company human capital is a mixture of the experience of the old and vigor of the young to drive the company.

Presently, we have developed a very vibrant agency retail unit with very active agency network across the nation.

He stated that the investment in retail businesses is aimed at deepening insurance penetration in the country and ensure they grow their revenue.

“We have also developed and gotten approval from National Insurance Commission for eight retail products that we are rolling out to the market. Some new ones are also with NAICOM for approval and some new ones are being develop.

“With some of these product, we will begin to partner with our friends, brokers and agents to see how we can work with your network to drive these products to our mutual clients.

“We have also applied for approval for Micro insurance license from the commission which we believe will help us deepen insurance penetration and our revenue. We are indeed very hopeful that we will get the approval and that will also help us to expand in the vision we are driving in that regard.”

On its financials, he said: ” We have consistently grown our revenue in the past five years. In 2020 despite the pandemic and #Endsars protest we grew our revenue by over 80 percent and profit level grew by over 1600 percent

On recapitalization, the universal boss said “Our shareholders and brokers have nothing to fear because we will meet the mark and the universal insurance brand will stand after recapitasation. Presently, we have a paid up capital of over N8billion and by the regulator’s template for capital we have over 80 percent as at now.”

He however stress that serious work is ongoing to ensure that any time the issue of recapitalization comes up we will meet the mark of N10billion.

Speaking on the company’s performance, Sir, Sunny Nwosu, a shareholders’ rights’ activist, lauded the board and management of the company for their ability to sustain and grow the company despite the downturn in the economy.

He urged the company to strategise towards growing the business and improving dividend payment for shareholders.

According to him shareholders will be more happier if dividends are paid regularly.

Moving forward, he said they will be looking at the balance sheet of the company to see how they can advise them to hasten up dividend payment for shareholders.

Also, Mattew Akinlade, President Noble shareholders Solidarity Association (NSSA), applauded the company’s strong presences in the industry in the last 60 years.

According to him, some companies established the same time with universal insurance have all gone under but Universal insurance has proven that it have what it takes to move the industry forward.

Also, Alfred Daudu, CEO, FSL Insurance Brokers Limited noted that the prompt claims payment by Universal insurance has made it the company of choice for most brokers.
According to him, Universal insurance ranks among the company high in claims payment, adding that they paid over N30million as claims to its clients in 2020 despite the negative impact of covid-19.

He assured that they will continue to support universal insurance to deepen insurance penetration in Nigeria.

Patoma Admin by — March 12, 2021 in Insurance 0

By Favour Nnabugwu

The Director-General of the Chartered Insurance Institute of Nigeria, CIIN, Mrs Abimbola Tiamiyu has celebrate the women professional in the insurance for talent, hard work and achievements.

Tiamiyu who was elevate by the courage to achieve a fest in life, dropped a note in the institute tweeter handle yesterday, greet the women for driving growth in the sector.

“Women have earned the right to be respected because of their talent, hard work and achievements”

She continued, “It is pleasing to see that there are more women taking a place at the head of the table and driving positive growth”

A few weeks ago, the 61-year old premier professional body, Chartered Insurance Institute of Nigeria (CIIN) welcomed Mrs. Abimbola Tiamiyu as its new Director General. She is the first woman to hold this position since 1993 when Mrs. Caludiana Brown served as Acting Registrar

This exciting news is coming shortly after the Nigeria Insurers Association (NIA) elected Mrs. Ebele Nwachukwu as its Vice Chairman, a position that means she will be decorated as the Chairman in 2022 after the new Chairman, Mr. Ganiyu Musa passes the baton. The NIA Secretariat, you may know, is headed by the indefatigable Director General, Mrs. Yetunde Ilori.

 Also, it would be necessary to remind us that the Nigerian Council of Registered Insurance Brokers (NCRIB) is currently led by Dr. (Mrs.) Bola Onigbogi who stepped in as President last year; and this is besides the Professional Insurance Ladies Association (PILA) which is, of course, headed by a new President, Mrs, Joyce Ojemudia who just came on board last May.

The list will not be complete without the mention of Mrs. Bukola Ifemade who chairs the influential Lagos Area Committee of the NCRIB, and Mrs. Yeside Oyetayo, the Rector of the College of Insurance and Financial Management, a full-fledged college set up by CIIN to undertake its training functions.

 These women are jointly and severally, if you may permit me to put it that way, on one mission: to transform the insurance industry in Nigeria

Patoma Admin by — March 9, 2021 in Insurance 0

By admin

Sunu Assurances Nigeria Plc has projected a gross written premium of N2.74 billion representing 62.41 percent of the full year budget, for the Q2 2021.

The projection surpasses the premium generated in the corresponding period 2020 by 41.97 percent which stood at N1.93 billion.

The company in its notice at the Nigerian Stock Exchange also projected a profit after tax of N184.425 million for the Q2 2021.

SUNU Assurances Plc recently listed on the daily official list of the Nigerian Stock Exchange (NSE) additional 3,010,800,000 ordinary shares of 50 each at N1.00 per share.
The additional shares listed on the Exchange arose from SUNU Assurances’ private placement of 3,010,800,000 ordinary shares of 50 kobo each at N1.00 per share to SUNU
Participations Holdings SA and SUNU Assurances Vie Cote D’ivoire SA. With this listing of the additional 3,010,800,000 ordinary shares, the total issued and fully
paid up shares of SUNU Assurances Nigeria Plc has now increased from 2,800,000,000 to 5,810,800,000 ordinary shares of 50 kobo each

Patoma Admin by — March 6, 2021 in Insurance 0

Favour Nnabugwu

The West African Insurance Companies Association Reinsurance, Waica Re, is set to hold its maiden edition of the annual corporate social responsibility competition in Nigeria and seven other countries.

With the theme “Practical solutions to natural disasters in West Africa”,  WAICA Re mentioned that the company is launching several other CSR projects in the countries where it operates in these seven countries- Sierra Leone, Côte d’Ivoire, Ghana, Gambia, Zimbabwe, Tunisia and Kenya.

The reinsurer is committed to improving training conditions in the insurance sector.

The competition is an opportunity for insurance professionals to propose solutions to the natural disaster-related issues in their respective countries.

Five judges will be in charge of selecting the three winners. The top-ranked candidate will be designated Waica Re (WRA) Ambassador for one year.

The WRA will receive a prize of 5 000 USD. The second and third place nominees will receive 2 000 USD and 1 000 USD respectively. The award ceremony shall be held in August 2021.

The Implementation of the proposal is required not to exceed 100 000 USD and is to be completed within one

Patoma Admin by — March 4, 2021 in Insurance 0

By admin

With the growing number of companies entering the takaful market, the Islamic insurance sector is expected to expand to $44bn in the next three years, expanding at a CAGR of 12.8 percent during 2019-2024, accoring to an industry expert.

Takaful insurance companies serve as an alternative to commercial insurance companies as the latter violate the restrictions on interest, uncertainty and gambling principles which are outlawed in sharia. Recently, there has been a rise in the number of institutions that offer Islamic financial services which have aided in the expansion of takaful across the globe.

Countries in South East Asia have implemented the Life Insurance and Family Takaful (LIFE) Framework which is expected to spur various market activities and enhance the sustainability of the takaful industry in the longer run. Apart from this, there has been a rise in the awareness among Muslims regarding the monetary benefits offered by takaful insurance.

This has encouraged foreign insurance companies to collaborate with takaful insurance companies, in turn, expanding their worldwide market reach. Moreover, the demand for takaful insurance products is also rising amongst the non-Muslim consumers as it is an ethical investment policy, with strong growth prospects and price competitiveness.

Despite these growth-inducing factors, the global takaful market is being impeded by the current inability of insurers to retain consumers

Speaking during a webinar hosted by Doha-based SEIB Insurance and Reinsurance on the Islamic insurance sector, Dr Mazen Abou Chakra, managing director of Gen Re Life and Health in MENA and the East Mediterranean region, said that the annual gross written contribution in 2020 was around $21bn worldwide. He added that the industry is projected to grow to $44bn by 2024, reported the newspaper The Peninsula.

Dr Mazen said takaful markets are mainly in Malaysia, Saudi Arabia and Iran, which together command around 80% of global takaful assets.

Another industry expert, Nohra Chaghouri, said, “In the mid-1990’s, there were only seven takaful companies in Sudan, Dubai, Saudi Arabia, Bahrain and Jordan, and in 2016, this number increased to around 300 takaful companies.”

Patoma Admin by — March 4, 2021 in Insurance 0