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In less than two months into year 2021,  African Alliance Insurance, has made a claims settlement  of N967million

The information was released by the firm’s Brand, Media and Communications Manager, Bankole Banjo.

The Managing Director of the 61-year-old company, Joyce Ojemudia, in the statement, said,  “For us at African Alliance, we are poised to continue our renewed commitment to fulfilling our stated obligations to our stakeholders. Paying claims as due, therefore, is non-negotiable. Indeed, the bedrock of a sustainable insurance business is a mutually beneficial arrangement where the insured and the insurer both stick to their obligations to each other without fail.”

Continuing, Ojemudia broke down the payments across the firm’s business lines; “between the first of January and now, we have paid about N148.2m to 155 individual life customers, N307.5m to 141 Group Life claimants, N124.1m to 168 Takaful claimants not forgetting some N387.3m to our annuitants.

We won’t shirk our responsibilities; we have promised to remain with our customers for life, we will not relent on our oars as we continue to excite our policyholders.”

Recall that in the last quarter of 2020, the firm had announced payments of over N2.3bn in claims in line with their continued drive for customer satisfaction.

Incorporated in 1960, African Alliance Insurance is Nigeria’s oldest and indigenous life insurer. Recently, the company announced the appointment of Joyce Ojemudia, a seasoned manager of resources and outstanding sales/marketing professional who is also a Council Member of the Chartered Insurance Institute of Nigeria and the current President of the Professionmal Insurance Ladies Association (PILA), as its substantive MD/CEO.

As a statement of the legacy firm’s renewed vigor, representation and repositioning for profitability, it is set to host the Members’ Evening of the Nigerian Council of Registered Insurance Brokers (NCRIB) come the 23rd of February, 2021.

Patoma Admin by — February 15, 2021 in Insurance 0

By admin

Insured losses from major natural  catsstsdtrophies totalled $78m in 2020. This represent 17 percent higher than the ten-year average of $66.5bn, according to Willis Re.

It is the fourth-highest total based on Willis Re numbers since 2011, and comes despite limited impact from the most active North American hurricane season on record, with 30 named storms.

Willis Re’s figures compare with Munich Re’s $82bnestimate, and Swiss Re’s preliminary nat cat loss estimate of $76bn Swiss Re’s has given a combined insurance cost of $83bn for nat cat and manmade disasters in 2020, up 10% on the ten-year average.

According to Aon, global insured natural catastrophe losses reached $97bn in 2020 and were $10bn higher than the ten-year average.

Willis Re said multiple hurricanes and tropical cyclones “skirted” major built-up areas last year. Hurricane Laura caused the most insured damage at $8bn to $9bn, according to the reinsurance broker.

Last year’s losses compare to $53bn in 2019, $80.5bn in 2018 and $143bn in 2017, according to Willis Re.

In Europe, windstorm Ciara – also known as Sabine – impacted more than ten countries, producing nearly $2bn of losses along with storms Ines, Dennis and Jorge in a two-week period, said Willis Re.

Tropical Cyclone Haishen caused less than $1bn of insured losses in Asia. Willis Re said this is well below losses caused by similar storms during 2019’s cyclone season.

The largest event of 2020 to hit Latin America and the Caribbean was Hurricane Iota in November, with an estimated economic loss of about $1.3bn, but much lower insured costs.

Yingzhen Chuang, regional director of catastrophe analytics at Willis Re International, said: “Natural catastrophe losses were high in 2020 but things could have been worse, given the number of storms which formed around the world. Fortunately, despite an active Atlantic hurricane season, landfalls were limited. While losses in Europe were modest, we did see a number of earthquake events as a reminder of the seismically active nature of southern Europe, as well as severe flooding from windstorms and hailstorm activity. During a year when Covid-19 dominated catastrophe loss discussions, there were nevertheless a series of smaller but impactful natural catastrophe events.”

Patoma Admin by — February 9, 2021 in Insurance 0

By admin

The Indian government has an increase in the permitted foreign direct investment in insurance companies from the current 49 percent to 74 percent

In her Budget 2021-2022 speech, minister of finance Nirmala Sitharaman said: “I propose to amend the Insurance Act, 1938 to increase the permissible foreign direct investment limit from 49 percent  to 74 percent in insurance companies and allow foreign ownership and control, with safeguards.”

She added: “Under the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 percent of directors being independent directors, and specified percentage of profits being retained as general reserve.”

AM Best called the move an opportunity for significant inflow of capital into the country’s fast-developing insurance market. “The increase will allow Indian insurers greater financial flexibility in additional capital-raising, and over time is expected to support a bolstering of the industry’s solvency.

Aside from the government’s mandate for control of the companies to remain with resident Indian citizens, which may be a limiting factor for foreign insurers looking to hold majority interest, a specified percentage of profits is also to be retained as a general reserve, which will contribute to the strengthening of companies’ capital positions,” said the ratings agency.

It added: “Best is of the opinion that the Indian insurance industry is likely to attract significant overseas capital, which is crucial to strengthening the solvency of the overall industry, particularly for the general insurance companies, which recorded declining capital buffers over the last few years. The raised foreign direct investment cap should also enable insurers to expand underwriting operations further, which will contribute to growing insurance penetration in the country.”

The move was broadly welcomed by industry in India. Indian business paper Financial Express said the increase “will help insurance companies to raise funds to ensure their solvency is maintained in line with growing business needs”, adding: “This may also help increase M&A in the sector while paving the way for PE funds to enter the space.”

The paper quoted Manoj Purohit, partner and leader – financial services tax, BDO India as saying: “This will also augment foreign inflows and help attract more foreign companies.”

In another Indian business paper, Business Standard, Vighnesh Shahane, managing director and chief executive officer at Ageas Federal Life Insurance, said it was a move in the right direction. “Insurance is a capital-intensive business and [after] the pandemic many Indian partners are not in a position to invest further capital in their companies. Certain companies also require capital infusion to conserve solvency margins. The Covid-19 pandemic has shown that further penetration of insurance in India is needed and for that, capital infusion is required. The foreign direct investment hike will give the foreign promoter an opportunity to buy out its cash-strapped Indian partners if required and provide the needed cash infusion,” he said.

It also quoted Anuj Shah, a partner at Khaitan & Co: “This one reform will overhaul the insurance sector with a newly found tailwind of foreign capital and knowhow. The finance minister has also proposed that foreign ownership and control (which was not available until now) will be permitted with safeguards. While we wait to see the final notification, this is indeed a very welcome move for the insurance sector.”

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Patoma Admin by — February 8, 2021 in Insurance 0

AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” of Custodian and Allied Insurance Limited (CAI) (Nigeria).

The outlook of these Credit Ratings (ratings) is stable. CAI is the wholly owned non-life subsidiary of Custodian Investment Plc.

The ratings reflect CAI’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and marginal enterprise risk management (ERM).

CAI’s balance sheet strength is underpinned by its risk-adjusted capitalisation at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Partially offsetting factors include CAI’s high-risk investment portfolio, with a significant exposure to non-investment grade bonds, and its high dependence on reinsurance.

The ratings also factor in the company’s exposure to the high levels of economic risk, and very high levels of political and financial system risk associated with operating exclusively in Nigeria.

AM Best expects the ongoing development of CAI’s ERM framework to be a positive factor in sustaining the company’s balance sheet strength. In particular, the company’s internal risk-based capital model supports strategic decision making in areas such as reinsurance placement and capital management.

CAI has a track record of strong underwriting and overall profitability, as illustrated by a five-year weighted average (2015-2019) combined ratio and return on equity of 85.0 percent and 22.1percent  (as calculated by AM Best), respectively. In recent years, the company has benefited from significant foreign exchange gains related to the devaluation of the Nigerian Naira against the U.S. dollar, as it holds approximately two-thirds of its liquid assets in foreign currencies.

CAI has a leading position within its domestic market. Nonetheless, its business profile assessment is limited, reflecting its concentration in Nigeria.

Patoma Admin by — February 5, 2021 in Insurance 0

AM Best has affirmed the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” of AXA Mansard Insurance Plc (AXA Mansard) (Nigeria). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect AXA Mansard’s balance sheet strength, which AM Best categorises as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also reflect rating enhancement from AXA Mansard’s ultimate parent, AXA S.A. (AXA group).

AXA Mansard’s balance sheet strength is underpinned by risk-adjusted capitalisation that is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Capital consumption is significantly influenced by the company’s real estate holdings, which in 2019 equated to 56% of capital and surplus. The company’s BCAR scores are expected to have improved for year-end 2020, driven largely by internal capital generation and limited growth in underwriting risk. The balance sheet strength assessment also considers AXA Mansard’s exposure to the high levels of economic, political and financial system risks that are associated with operating in Nigeria.

AXA Mansard’s adequate operating performance reflects its modest overall profitability combined with volatile underwriting performance, as demonstrated by its five-year (2015-2019) weighted average combined ratio of 105%, which ranged between 98 percent  and 113 percent Historically, technical performance had been negatively impacted by the company’s high expense ratio, which exceeded 44 percent in the years 2015-2017. Overall operating profitability has been modest when factoring in local inflationary conditions, demonstrated by a five-year weighted average return-on-equity ratio of 11 percent supported by investment returns in excess of 9 perfect over the same period. AM Best expects AXA Mansard to generate a significantly improved result in 2020, with the company recording net income of NGN 5.7 billion (USD 14.7 million) for the first nine months of the year, a NGN 3.6 billion increase against the same period in 2019.

As AXA Mansard continues to execute its growth plan, AM Best expects the company’s prospective operating performance to benefit from a reduced expense ratio as a consequence of economies of scale.

AXA Mansard is a composite insurer concentrated in the Nigerian market. The company has an aggressive growth strategy within the health insurance line, which in 2018 led to it becoming a market leader in this segment. With support from the AXA group, AM Best expects the company to continue to evolve its risk management capabilities.

Patoma Admin by — February 5, 2021 in Insurance 0

NEM Insurance Plc recorded profit for 2020 rose to N4.084 billion from N2.378 billion in 2019 representing 71.72 percent be increase.

The company released its interim financial statement for the fourth quarter (Q4) ended December 31, 2020 with its  profit after tax jumped by 347 percent in Q4 2020 to N2.967 billion from N663.414 million in Q4 2019.

Its gross premiums written dropping slightly to N3.267 billion in Q4 2020 from N3.355 billion in 2019.

The gross premiums written for the full year rose to N22.036 billion from N19.760 billion in 2019.

The insurer improved on the profit after tax jumped by 347 percent in Q4 2020 to N2.967 billion from N663.414 million in Q4 2019

 

Patoma Admin by — February 4, 2021 in Insurance 0
Global Insurance increase to 22% in Q4 2020 but slowing down

Global insurance prices jumped 22 percent year on year in Q4 2020, compared to 20 percent, 19 percent and 14 percent in the preceding three quarters of last year, according to Marsh’s Global Insurance Market Index.

The findings suggest that although things are still getting tougher for buyers, the rate of market hardening may have begun to taper off.

Speaking on Marsh & McLennan’s Q4 and full year result call, the firm’s president and CEO Dan Glaser said the Q4 22 percent increase marks the 13th consecutive quarterly rise in the commercial P&C market.

He said global property insurance pricing was up 20 percent in the quarter year on year. This follows an average increase of 21vpercent in the third quarter of 2020, 19 percent in Q2 and 15 percent in Q1.

Global casualty rates were up 7 percent in the last quarter, said Mr Glaser. According to Marsh’s index, casualty pricing rose 6 percent in Q3, 7 percent in Q2 and 5 percent in Q1.

Global finpro risks saw the biggest price rise in the fourth quarter, with an eyewatering 47 percent on average. Finpro rates were up 40 percent in Q3, 37 percent in Q2 and 25 percent in Q1, according to Marsh.

The broker added that US workers compensation pricing declined modestly in the fourth quarter of last year.

Marsh’s index is skewed towards large accounts. But Mr Glaser said SME pricing also continues to rise, though the magnitude of increases is less than for the bigger buyers.

“At the January renewals, commercial insurance market conditions remained challenging across products and regions. Risks are able to be placed, although at higher prices and in some cases with less coverage and stricter terms. Insurance carriers continue to push for rate increases in the face of losses, low returns and interest rates,” said Mr Glaser.

He added that 1 January reinsurance renewals ultimately settled at the lower end of early predictions. But “negotiations were lengthy and complex, with a significant focus on coverage and structure”, said Mr Glaser.

Patoma Admin by — February 1, 2021 in Insurance 0

Coronation Insurance Plc, formerly Wapic Insurance Plc has recorded an improved financial performance in its unaudited for  the year ended 31 December 2020 as gross written premium soared to N16.178 billion from N15.201 billion in 2019.

According to the firms filing with the  Nigeria Stock Exchange (NSE) its profit after tax jumped by 254% to N759.265 million from N214.327 million in 2019.

Recall that the  multi-line insurance company, in  the period ended 30th September, 2020 recorded a Gross Written Premium to the tune of N13.26bn for its unaudited financial results for the period ended 30th September, 2020.

This represents a growth rate of 5% when compared to the figure recorded in the same period in 2019. We sustained this consistent growth in premium by the attainment of leadership status on some major accounts and enhanced underwriting capabilities, said the firm.

According to statement the group’s total underwriting profit grew by 6 percent to N2.67billion year-on-year growth from the N2.45bn recorded in the preceding period of 2019, this the company said is driven by the growth in premiums income and fees and commission income.

The Group closed with a Profit before Tax of N1.07bn representing a YoY decline of 2%, adding that the key drivers of this position were increases in claims and operating expenses for the period.

Patoma Admin by — January 30, 2021 in Insurance 0

LASACO Assurance P1c, an active player in Nigeria’s sector said it had obtained regulatory approvals to reconstruct its issued and fully paid-up Share Capital of 7,334,343,421 Ordinary shares of S0kobo each in the ratio One (1) new Ordinary share for every Four (4) Ordinary shares previously hetd by the shareholders of LASACO Assurance Plc.

In a notice at the Nigerian Stock Exchange, LASACO said the move followed the approval of the shareholders at the 39th Annual General Meeting of the company held on 8th October, 2019.

To enable the reconstruction of the shares, the company had given notice of the suspension of trading on the shares of LASACO for two weeks beginning from Monday Ist February, 2021 to Friday 12th February, 2021 both days inclusive.

“The Register of shareholders shall be closed for this period to enable the Central Securities Clearing Systems P1c.(CSCS) and Apel Capital Registrars Limited, the Registrars to LASACO, to finalize the Reconstruction of the shares and produce a new Register for the Company,” the notice said.

Patoma Admin by — January 29, 2021 in Insurance 0

Universal Insurance Plc, has rolled out  insurance products called Okada Personal Assurance & Safety Scheme (Okada Pass), which are to ensure the safety of Okada riders and their passengers in Nigeria.

Okada Pass plan is uniquely designed to provide cover for personal accident to the insured Okada rider. The products will also be sold as an individual policy and as a group scheme to Okada riders.

The plan is a compensation plan for riders in case of an accident. The premium amount to pay will however depend on the Type of Plan you choose.

The Okada Personal Assurance & Safety Scheme (Okada Pass) comes in five different plans:

Jeje Cover- With as low as N2,300 yearly premium a rider can get paid up to N50,000 for Medical Expenses; N100,000 for Permanent Disability; N100,000 for Death; N50,000 for Third Party Liability and 10,000 for Repair Assist (Owned damage).

Carry -Go Cover: Enables the rider to get paid up to: N75,000 for Medical Expenses; N150,000 for Permanent Disability; N150,000 for Death; N65,000 for Third Party Liabilities and N15,000 for Repair Assist (Owned damage). This cover attracts a yearly premium of N3,400.

The No-Shaking Cover comes with an annual premium of ₦4,000 which covers the Rider and enables him to get paid up to: N80,000 for Medical Expenses; N200,000 for Permanent Disability; N200,000 for Death; N70,000 for Third Party Liability and N20,000 for Repair Assist (Owned damage).

Under the Confaam Cover, riders are expected to get N80,000 for Medical Expenses; N200,000 for Permanent Disability; N200,000 for Death; ₦70,000 for Third Party Liability; ₦20,000 for Repair Assist (Owned damage) and ₦20,000 for Passengers Medical Expenses. The premium for this cover is ₦4,400 per year.

The Digital Bike Cover allows policyholders to pay a yearly premium up to N10,400 which qualifies them to get paid up to N100,000 for Medical Expenses; ₦250,000 for Permanent Disability; ₦250,000 for Death; ₦75,000 for Third Party Liability; ₦50,000 for Repair Assist (Owned damage); ₦50,000 for Passengers Medical Expenses and ₦250,000 for Goods/Parcel (Annual Limit).

Speaking on the product, the Managing Director, Mr Benedict Ujoatuonu, stated that Okada Pass is an innovative product that provides benefits to Okada riders.

According to Ujoatuonu, “If you take a look at the level of accidents that involve the Okada riders every day on Nigerian roads, they are high and most often you discover they are left without any form of Benefits that come from insurance. So, this is what our Okada Pass is coming to take care of”.

“We provide them with personal accident Cover that makes sure that when they sustain any injury that requires medical attention,they will get it from the policy. Even if it is disability which is very rampant in Okada business, they will be covered by our policy. We will compensate the family of the rider if it results to death. Our Okada Pass is an innovative insurance product which has everything they need in the Cover.”

He urged Okada riders and their groups to embrace the new products so that they can create benefits for their members which will in turn sustain their business.

With an asset base of over N11Billion, authorized, share capital of 16Billion units and N8Billion paid-up respectively,Universal Insurance Plc. is a General Business organizationregistered to underwrite General Insurance business.

The Managing Director revealed that the Company is now fully computerized to drive excellence in service delivery adding that they are widely known for providing peace of mind to their clients and enriching their quality of life through their partnership in the management of the risks they face.

Patoma Admin by — January 29, 2021 in Insurance 0