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Economy

FG approves new Ag. Insurance commissioner

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The Federal government has approved the appointment of  Mr Sunday Thomas, as the new Ag. Commissioner for Insurance (CFI) for the country,

The news on the appointment is contained in a circular signed by Mr A.O Bello, the Deputy Director, Home Finance, for the Permanent Secretary, Federal ministry of finance on Friday in Abuja.

The circular was released to newsmen  by the National Insurance Commission (NAICOM)

The circular said the appointment was pending until  the appointment of a substantive CFI by President Muhammadu Buhari.

The circular said the appointment was to ensure effective administration of insurance industry in line with the provisions of National Insurance Commission (NAICOM) Act of 1997. 

Edited by Donald Ugwu

General news

Ogun Assembly passes Health Insurance bill, another into law 

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The Ogun House of Assembly on Thursday passed into law a bill to amend the state Health Insurance Scheme.

Mr Adegoke Adeyanju (ADC -Yewa North 1) and Chairman, House Committee on Health, read the committee’s report on the bill during plenary in Abeokuta.

Adeyanju moved the motion for the adoption of the report, which was seconded by Mrs Atinuke Bello (APC-Odogbolu), who is also the Chief Whip of the house.

Mr Yusuf Sherif (APC-Ado Odo Ota 1), the Majority Leader, moved the motion for the third reading of the bill which was seconded by Ganiyu Oyedeji (APM-Ifo 11), the Minority Leader.

The Clerk of the House, Mr Adedeji Adeyemo, read the bill for the third time before the members.

Also during plenary,  the assembly passed into law a bill to prescribe approval of regulation by resolution of the Ogun House of Assembly and for connected purposes.

Mrs Modupe Mujota (APM-Abeokuta North) presented the committee report on the bill.

Mujota also moved the motion for the adoption of the report which was seconded by Abayomi Fasuwa (APC-Ijebu North East).

Sherif thereafter moved the motion for the third reading of the bill, which was seconded by Sola Adams (APC-Ijebu East).

Adeyemo, the clerk of the House, also read the bill for the third time for adoption by members.

Consequently, Mr Olakunle Oluomo (APC-Ifo1), the Speaker, ordered that the clean copies of the two bills be forwarded to Gov. Dapo Abiodun for his assent.


Edited By: Kamal Tayo Oropo/Muhammad Suleiman Tola (NAN)

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Economy

NAICOM segments, extends full recapitalisation of insurance companies to 2021

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National Insurance Commision (NAICOM) has  directed insurance and re-insurance companies to comply with approved minimum paid-up capital not later than Sept. 30, 2021 as against recapitalisation deadline of Dec.  31, 2020.

Mr Pius Agboola, NAICOM Director, Policy and Regulation, on behalf of the Commissioner for Insurance in a circular dated June 3, said that the incidences of the COVID-19 pandemic  made it difficult to proceed with the Dec. 31, 2020 deadline.

Agboola explained that in order to mitigate likely negative consequences of the pandemic, the commission  extended and segmented the recapitalisation process into two phases

He stated that insurance companies were expected to pay 50 per cent of the minimum paid-up capital while re-insurance companies were expected to pay 60 per cent by Dec. 31, 2020.

“The segmentation is indicated as : Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.

General Insurance business with existing minimum paid-up capital of N3 billion is expected to pay a minimum paid-up capital of N5 billion by Dec. 31, 2020 and N10 billion by Sept. 30,2021.

Composite Insurance business with existing minimum paid-up capital of N5 billion is expected to pay a minimum paid-up capital of N9 billion by Dec. 31. 2020 and N18 billion by Sept. 30, 2021.

“Reinsurance business with existing minimum paid-up capital of N10 billion is expected to pay a minimum of N12 billion by Dec. 31,2020 and N20 billion by Sept. 30,2021, ” he said.

According to him, insurance companies that fail to satisfy the required minimum paid-up capital by the end of Dec. 31,2020 may be restricted on the scope of business they will transact.

Agboola noted that all insurance companies must fully comply with the required minimum paid-up capital at the end of the recapitalisation on Sept. 30,2021.

Recall that NAICOM had in earlier circulars, directed insurance companies in the country to raise their capital since May 20, 2019 while the deadline of the exercise was fixed for December 31, 2020.

The industry recapitalisation required that Life companies increased their paid-up share capital from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance companies from N10 billion to N20 billion.


Edited By: Chioma Ugboma/Wale Ojetimi (NAN)

 

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Economy

FBN Holdings completes sale of Insurance to Sanlam

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FBN Holdings (FBNH) Plc and Sanlam Emerging Markets (Proprietary) Ltd (Sanlam) have announced the completion of the sale and transfer of FBNH’s 65 per cent shareholding in FBN Insurance (FBNI) to Sanlam.

The Boards of Directors of both organisation stated this in a divestment annoucement on Tuesday pasted on the Nigerian Stock Exchange (NSE) web site.

The News Agency of Nigeria reports that the divestment announced was signed by Mr Urum Kalu Eke, FBNH Group Managing Director and Mr Heinie Werth, Sanlam Chief Executive Officer.

The statement said the divestment confers full ownership of FBN Insurance and its subsidiary, FBN General Insurance Ltd on Sanlam.

“This effectively confers full ownership of FBNI and its subsidiary, FBN General Insurance on Sanlam forthwith, following receipt of all relevant regulatory approvals.

“Both organisations had activated the shareholders agreement which provides pre-emotive rights to Sanlam.

“Accordingly, and as has been indicated in the Share Purchase Agreement, the effective date of the divestment is June 1,” the statement read.

NAN reports that FBNH had on April 15, officially notified the Exchange of on-going discussions with its partner Sanlam Emerging Markets to divest 65 per cent equity in FBNI Ltd.

FBNI was founded as Life Insurer in 2010, with a vision to be Nigeria’s first choice in risk underwriting, wealth preservation and financial security.

The company has grown to become one of the best insurance companies in Nigeria with a subsidiary that undertakes general insurance business, offering a broad range of investment and risk underwriting products.

FBNI, known and well respected for its quality of service, integrity, innovation and professionalism, was awarded the ‘Best Life Insurance Company in Nigeria’ for the past four years consecutively.

Sanlam Group has been associated with FBNI since it was established in 2010 and was the other shareholder.

Sanlam, with over 100 years experience and expertise in Insurance, Asset Management, Wealth Management and Investments is one of the leading Insurance companies in Africa.


Edited By: Chinyere Bassey/Oluwole Sogunle (NAN)

 

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Economy

AIICO Insurance premiums increase by 23% to N17.6bn in first quarter

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AIICO Insurance Plc on Thursday announced a Gross Written Premiums of ₦17.6 billion for first quarter of 2020, indicating 23 per cent increase from N14.3 billion recorded in the same period of 2019.

The Company’s spokesman, Mr Ademola Adenekan, said in statement that the growth was driven by the group’s sustained positive performance which included retail, corporate and institutional businesses.

It said the group also recorded a 24 per cent increase in Profit Before Tax (PBT) of N1.44 billion, compared to N1.17bn in first quarter of 2019.

Profit After Tax (PAT) also grew by 129 per cent to N1.88 billion, compared to N0.82 billion attained in first quarter 2019,” it said.

Mr Babatunde Fajeromirokun, Managing Director/Chief Executive Officer of the firm, said that AIICO delivered excellent first quarter results.

Fajeromirokun noted that this demonstrated the overall strength of the company and its ability to continue to meet the obligations to stakeholders even in the face of the COVID-19 global pandemic.

“We are living in a period of uncharted waters and recognise the situation presents both challenges and opportunities.

“Our resilient business continuity plans and robust technology infrastructure ensured we remained operational throughout the lockdown period.

“We have rolled out additional digital channels for the convenience and safety of our customers, and our employees have embraced the Work-From-Home (WFH) concept – indeed this is the new normal,” he said.

According to him, in the light of these outcomes, the firm recorded strong growth in its Retail Life business, which grew by 34 per cent to N10.97 billion (Q1 2019: N8.2billion); and an increase of six per cent in its Corporate and Institutional business to N6.2 billion (Q1 2019: N5.9 billion).

Fajeromirokun explained that within the period under review, the group’s balance sheet improved with total assets growing by 11 per cent to N176 billion, compared to N159 billion in Dec 2019.

He said shareholders’ funds also rose by 0.28 per cent to N27.99 billion (Dec 2019: N27.91billion).

The Managing Director stated that insurance has a critical role to play in the economy and business environment in which we operate.

“With the advent of this pandemic, we are seeing increasing requests from corporations in Nigeria trying to understand how insurance can be deployed as a strategy for building resilience within their businesses.

“On the retail side, we are seeing new trends emerge; one of which is the shift towards a low touch world, where close-contact interaction is discouraged.

“In response, we are positioning to take advantage of these trends and opportunities presented by the COVID-19 pandemic to reshape and disrupt the way we operate, interact and our go-to-market strategy.

“I am, however, confident that we will get through this difficult times and emerge stronger,” Fejemirokun said.

Edited By: Abiodun Esan/Wale Ojetimi (NAN)

 

 

 

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Economy

Unitrust Insurance pays over N269m claims in first quarter

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Unitrust Insurance Company Ltd. on Friday said it paid its customers over N269 million as claims in the first quarter of 2020.

The insurance company said in a statement that the claims were paid during the COVID-19 lockdown in fulfillment of its avowed commitment to prompt claims settlements.

“We have been working remotely despite the COVID-19 disruption and have remained reachable to our customers via our CRM solutions and other business continuity plans.

“Some of the major businesses whose claims were settled includes: Mouka Foam Ltd. (Fire and burglary Policy), Pz Cusson Nigerian Ltd and Subsidiary (Marine and Fire policy),” it stated.

According to Unitrust Insurance, other organisation that were also settled included Sumal Foods limited (Marine Cargo and Goods-in-Transit), RATCON Construction (Engineering and Cash-in -Transit Insurance).

Unitrust was licensed in 1981 and authorized by the Corporate Affairs Commission RC– 42899 and National Insurance Commission (NAICOM).

Edited By: Edith Bolokor/Wale Ojetimi (NAN)

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General news

Kogi Govt. initiates health insurance policy for citizens

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Kogi Government on Wednesday said it had established health insurance agency as part of its commitment to providing quality and affordable healthcare for its citizens.

The Executive Secretary of the Agency, Dr Kunle Aledare, said this during a courtesy visit to the Commissioner for Information and Communications, Mr Kingsley Fanwo, in Lokoja.

Aledare noted that he led the management of the agency on a familiarisation visit to the information and communication ministry as part of the critical stakeholders in furtherance to the commencement of enrolment of beneficiaries.

”We are paying courtesy visit to our stakeholders before we commence enrolment,” he said.

He, therefore, solicited for the ministry’s support in the area of sensitisation on the health insurance scheme at the grassroots.

Responding, the commissioner described the health insurance as a laudable programme, saying, ”healthcare delivery is one of set goals and thematic areas of governor Bello’s administration”.

Fanwo noted that the government has the responsibility to take the chunk of the health liabilities of the people.

“Healthcare delivery is one of the cardinal goals we set to achieve and one of the thematic areas.

“People must have access to quality and affordable healthcare.

“Government has the responsibility of taking the chunk of health liabilities of the people and that is the manadate of the agency,” Fanwo said.

The Commissioner said the state government would continue to give priority attention to healthcare, noting that a larger percentage of the year 2020 Budget had been allocated to the health sector.

Fanwo commended the leadership of the new agency, saying government had no doubt in their capability at providing ever ready services to justify their given mandate.

While promising adequate sensitisation of the programme through the state owned media, the commissioner encouraged the citizens to key into the health insurance scheme and reap of its benefits.

Also speaking, the Permanent Secretary in the ministry, Mr Peter Stephen, urged the management of the agency to  collaborate with ministry for greater success.

Edited By: Angela Okisor/Felix Ajide (NAN)

 

 

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General news

8,000 health workers in Ogun get life insurance

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The Ogun government  says more than 8,000 health workers have been enrolled for life insurance policy in order to further motivate those working on the frontlines against COVID-19.

Dr Tomi Coker, the Commissioner for Health in the state, said this on Friday in Abeokuta while briefing members of the House of Assembly on government’s efforts to curtail the spread of the pandemic.

The News Agency of Nigeria reports that the assembly had on Wednesday summoned the commissioner and her Special Duties counterpart to come and explain  the administration’s initiatives on checking the spread of the virus.

Coker added that government had  finalised an incentive package for the health workers.

She also said 700 contacts had been tested, out of which 137 were confirmed positive while 59 were treated and discharged.

The commissioner further said there were 70 active cases while five deaths were recorded.

Coker noted that the available facilities at the isolation centres had made response to the pandemic steady in the state.

According to her, Sagamu and Ikenne have one centre each while three are in Abeokuta,

She said the centres were established in line with international best practices in being sited close to tertiary health facilities.

The Commissioner for Special Duties , Mr  Femi Ogunbanwo, on his part, said no fewer than 60,000 school pupils currently at home would be fed within the next two weeks under the Home Grown School Feeding Programme of the Federal Government.

Ogunbanwo explained that the intervention would be carried out in collaboration with relevant stakeholders including the Parents/Teachers Association and local government councils at the 290 designated distribution centres in wards  across the state.

He added that more than 2, 400 households in the state had been enlisted in the Conditional Cash Transfer initiative of the Federal Government.

Responding, the Speaker, Mr Olakunle Oluomo,  challenged the commissioners to improve on every measure aimed at combating the spread of the virus.

Oluomo  reiterated that the Ninth Assembly would continue to collaborate with the executive in ensuring that the state flattened the curve of the pandemic.

He urged residents of the state to adhere strictly to the guidelines set by government to curtail the spread of the virus.

(
Edited By: Angela Okisor/Mufutau Ojo) (NAN)

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Economy

Lockdown: Insurance firm gives customers discount

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FBN General Insurance, a subsidiary of FBN Insurance Limited, has announced a one-time one-month discount to all her Comprehensive Motor Insurance policy holders.

Mr Bode Opadokun, the Company’s Managing Director /Chief Executive Officer, said this in a statement made available to the News Agency of Nigeria on Tuesday in Lagos .

Opadokun said that the discount was introduced to alleviate the pressures faced by clients with the imposed lockdown by the Federal Government due to the coronavirus pandemic.

He said that the initiative was aimed at providing financial relief to customers at renewal.

According to him, the initiative is a one-month discount applicable to all one-year full Comprehensive Motor Insurance policies due for renewal between May 1, 2020 and April 30, 2021.

“Due to the lockdown, driving habits changed as many people stayed at home.

” As a result of this, risk exposure on motor vehicles were significantly reduced as frequency of usage was near zero.

” We as an organisation keen to satisfying and appreciating our clients have therefore introduced this discount to commend the efforts of our esteemed customers for adhering strictly to the lockdown guidelines, as well as supporting the move of the Federal Government and health authorities to curb the spread of the dreaded virus.

“This offer is a one-off one-month discount for all our existing Comprehensive Motor Insurance clients only,” he said.

The Managing Director said that the company, in collaboration with her parent body, FBN Insurance Limited, made a donation of a fully equipped ambulance to the Lagos State Government.

He said the firm also donated food items to the needy in communities within Lagos, to cushion the effect of the pandemic and lockdown.

Opadokun admonished all customers and Nigerians in general to continue to adhere strictly to all precautionary measures specified by the federal government and health authorities following the easing of the lockdown.

The company also promised to continue to support the government’s efforts to contain the spread of the virus.

Edited By: Modupe Adeloye/Oluwole Sogunle (NAN)

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Economy

AIICO Insurance announce N50.1bn gross written premium in 2019

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AIICO Insurance Plc., has announced gross written premiums for the year ended Dec. 31, 2019, which rose by 33 per cent to N50.1 billion from N37.7 billion in 2018.

The firm, in a statement made available to the News Agency of Nigeria on Tuesday in Lagos, announced the performance at the presentation of its financial result for the year under review.

AIICO noted that the outstanding performance was predominantly driven by growth across all lines of business within the group.

It said that profit before tax (PBT) soared to N6.2 billion, an increment of 78 per cent compared to the N3.5 billion achieved in 2018.

According to the firm, profit after tax (PAT) also grew by 88 per cent to N5.9 billion, compared to N3.2 billion in 2018

Its basic earnings per share (EPS) increased by 89 per cent from 44k in 2018 to 83k in 2019.

Mr Babatunde Fajemirokun, the Managing Director/Chief Executive Officer of the company, explained that in 2019, the firm undertook a thorough review of its businesses with a clear aspiration to attain market leadership through profitable growth.

“Stemming from the progress made so far, it is my belief that we are on course and have the right strategy in place to deliver even more sterling performance in the years ahead.

“In accordance with our commitment to the fulfilment of our obligations to our clients, gross claims grew by six per cent from N29.0 billion in 2018 to N30.6 billion in 2019.

“From this amount, about 75 per cent was for benefits and claims payment in our Life business with the remaining 25 per cent incurred in the Non-Life business.

“The Group, however, experienced an underwriting loss of N6.34 billion in 2019.

“This is predominantly driven by the increase in life technical reserves, (change in life funds) in the Life business.

“The Non-Life business achieved N2.4 billion underwriting profit in 2019.

“This increase in life technical reserves is based on significant growth in new business, the impact of changes in yields on federal government securities and assumption changes such as mortality, withdrawal experiences, policy expenses and increased inflation,’’ Fajemirokun said.

According to him, the underwriting loss of N6.3 billion is a notional loss (non-cash) given the format of insurance accounts used for a composite player in Nigeria.

He explained that for Life insurance businesses, investment income which includes the increase in fair value of assets backing life technical reserves is typically combined with premium income.

He said this is to fund the technical reserves (change in life funds), meet part of claims settlement, then contribute to cover expenses and return a profit to shareholders.

“Therefore, adjusting for investment income for the Life insurance business would result in an underwriting profit for the composite insurance operation and the company.

“The total assets grew by 45 per cent from N110 billion in 2018 to N159.5 billion in 2019.’’

The CEO said the firm had received approval to increase the authorised share capital of the company in line with the new regulatory capital requirements for a composite insurer.

“Shareholders’ Equity of the company increased by 92 per cent to N27.9 billion (from N14.5 billion in 2018) driven by the successful completion of a private placement investment by two strategic investors (LeapFrog Nigeria Insurance Holdings Limited and AIICO Bahamas Nigeria Limited) and improvements in retained earnings,’’ he said.

The managing director said that this also led to an upward review of the company’s paid-up share capital, increasing from N6.1 billion to N11.3 billion with plans underway to raise the outstanding capital by way of a rights issue.

According to him, the new capital injection will strengthen its balance sheet and provide additional capacity to underwrite more risks.

Fajemirokun stated that AIICO will continue to push boundaries to break new grounds and keep adapting to change, identifying and introducing innovative ways of working and providing its customers with distinctive experiences in unprecedented times.

“This is the only way to succeed in the long term.

“We remain committed to the full execution of our strategic objectives of becoming a best-in-class lifestyle company and delivering superior value to our shareholders.’’

Edited By: Modupe Adeloye/Abdulfatah Babatunde (NAN)

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Contact US: editor @nnn.com.ng, nnnnews247 @gmail.com

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