Wednesday, April 14African Business News
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African Trade Insurance Agency (ATI)’s Transparency Tool Records ESCOM’s Impressive Payment Record to Malawi’s only Operational IPP

African Trade Insurance Agency (ATI)’s Transparency Tool Records ESCOM’s Impressive Payment Record to Malawi’s only Operational IPP

Insurance
ESCOM, Malawi’s national power utility, made timely payments to the Ruo-Ndiza Hydroelectric power plant for 22,578 MWh of electricity supplied to the utility throughout 2020; The payments have been collected and recorded by the Transparency Tool, a joint initiative of ATI (ATI-aca.org) and KfW; This is the first report being published by the Transparency Tool since its launch in 2019. The Transparency Tool, an online platform that collects and provides information on the payments of national power utilities to Independent Power Producers (IPPs) across sub-Saharan Africa, has recorded an impressive payment trend in Electricity Supply Corporation of Malawi Limited (ESCOM). The utility’s payments were to the Ruo-Ndiza hydroelectric power project, the country’s sole operational renewable e...
Underwriter drives acceptance with regional operation

Underwriter drives acceptance with regional operation

Insurance
Mutual Benefits Assurance Plc has established a South-West Region Franchise Operation in Ibadan, Oyo State to boost insurance adoption and market penetration. The Managing Director, Femi Asenuga, said it is part of the efforts to develop the insurance business and create value. According to Asenuga, the gesture is to drive marketing of its products and create ambassadors in the region. He stressed that in developed economies insurance firms owned banks but regretted that this was not the situation in Nigeria. The Group Managing Director, Odua Group, Adewale Raji, who also spoke on operation unveiling advised stakeholders to be committed and show integrity in doing business. “The Odua investment is owned by the six South-West governments and it is in interest when economic, bus...
Age-long patronage crisis threatens insurance survival

Age-long patronage crisis threatens insurance survival

Insurance
Decades after the industry took its root, Nigeria’s insurance industry, sadly, stands at less than five per cent penetration. The poor adoption is a big threat to the survival of about 58 insurance firms across the country. Already, about 30 per cent of the operators are less active and have been taken over by the National Insurance Commission (NAICOM) while the rest grapple with a series of challenges ranging from poor financials to low patronage. Other challenges bedeviling the industry include insecurity and negative public perception. The insecurity in the country has increased claim responsibilities whereas premium growth has failed to match the rate of claim increase. With an expected annual total gross premiums of N480 billion in the 2020 financial year, much below the...
Experts task insurers on mergers, acquisitions for big-ticket

Experts task insurers on mergers, acquisitions for big-ticket

Insurance
Experts in the insurance industry have charged weak operators in the market to embrace mergers and acquisitions (M&A) to form big-ticket firms that would compete globally. The Group Managing Director/Chief Executive, Continental Reinsurance, Femi Oyetunji, warned that unless the number of insurance firms is reduced to 20 strong underwriting companies, the insurance market cannot compete with their international counterparts. He said: “If we don’t reduce the number of insurance companies in the market, we are not going anywhere. My personal belief is that 15 to 20 well-capitalized, skilled insurance companies will transform the industry.” He said he would like to see insurance companies for stronger synergy. He said the biggest threat at the moment is global players with l...
NAICOM targets June for new guidelines implementation

NAICOM targets June for new guidelines implementation

Insurance
The National Insurance Commission (NAICOM) has fixed June 1, 2021, for the implementation of the industry’s corporate governance guidelines that will take the sector to a greater height. NAICOM, on its website, noted that the guidelines were issued on March 17, 2021, and implored all insurance and reinsurance firms to comply with the rules and the Nigerian Code of Corporate Governance 2018. According to NAICOM, non-compliance with the code and the guidelines shall be a violation of section 49(1) of the National Insurance Commission Act 1997 and attracts a penalty. The Commission maintained that its main objective is to ensure effective administration, supervision, regulation, and control of the insurance business in Nigeria, adding that Section 11 and 51 of the Financial Reportin...
Insurer plans new strategies to deepen insurance market

Insurer plans new strategies to deepen insurance market

Insurance
Operators have been urged to diversify insurance products to meet the needs of every individual in the country. Besides, they called on the public to appreciate the significance of insurance in reducing risks. The Managing Director/ Chief Executive Officer, Great Nigeria Insurance Plc, Mrs. Cecilia Osipitan, in an interview with The Guardian at the weekend, said that there is a need to see information and communication technology (ICT) as the driver of insurance growth. According to her, despite the slow insurance adoption, there is hope that penetration and premium payment will rise as the industry is beginning to do well. Osipitan explained that the organisation remains committed to its vision and shared values with innovative ideas on how to move the company forward while e...
Experts charge insurers on N59trn real estate opportunity

Experts charge insurers on N59trn real estate opportunity

Insurance
Experts in the nation’s insurance industry have called on underwriting firms to tap into opportunities in the real estate sector, which valuers estimate at about N59 trillion to contribute to the growth of the economy. The Guardian gathered that although real estate investment is not admissible as a part of the paid-up capital in the ongoing exercise, insurers perceive property as another investment sanctuary. Many insurers after the regulatory-induced recapitalisation will have enough funds at their disposal to invest in profitable sectors to give good returns to their shareholders The National Insurance Commission (NAICOM), has raised the minimum paid-up share capital of a life insurance company from N2 billion to N8billion, non-life insurance from N3 billion to N10billion ...
Net value of listed mutual funds hits N1.24tr

Net value of listed mutual funds hits N1.24tr

Insurance
The Net Asset Value (NAV) of 56 mutual funds listed on the Nigerian Stock Exchange (NSE) rose from N1.24 trillion at the end of 2020. This figure represents 88.3 per cent of the total NAV in the Nigerian capital market. The Divisional Head, Listings Business, NSE, Olumide Bolumole stated this at the exchange’s digital closing gong ceremony to commemorate the election of Mrs. Tope Omojokun as the President, Fund Managers Association of Nigeria (FMAN). According to him, the number of registered mutual funds with the Securities and Exchange Commission (SEC) also grew from 76 in 2019 with NAV of N600 billion to 102 with NAV of over N1.43 trillion in 2020. Bolumole said the increase in the number of listed funds and the value confirms the NSE as the preferred listing destination for t...
New firm debuts, pledges to rewrite insurance perception

New firm debuts, pledges to rewrite insurance perception

Insurance
In a bid to deepen insurance penetration, especially life insurance policy in the Nigerian market, a subsidiary of Enterprise Group Plc, Enterprise Life Assurance, has commenced operation in Nigeria. The commencement of business is coming after the Nigerian National Insurance Commission (NAICOM) granted it an operating license after meeting necessary conditions, including a capital requirement of N8 billion as of February last year. Although Enterprise Life Assurance Company is new in the Nigerian market space, it is Key in the West African market where it has built decades of experience and expertise in delivering innovative life Insurance solutions that support customers’ quest for a fulfilled and quality life. According to the firm, Nigerians are resourceful and ingenious peop...
Insurers sustain economy with N747.06bn claim settlement

Insurers sustain economy with N747.06bn claim settlement

Insurance
Despite worries about a recession, operators in the nation’s insurance industry have supported the economy with claim settlement of about N747.06 billion in the last five years. This data was obtained from the Nigerian Insurers Association (NIA) digest, a statistical journal of the association, revealed that in 2015 non-life underwriters settled claims of N54.65 billion while life operators paid N50.57 billion. In 2016, non-life operators paid N57.76 billion while life operators paid N61.87 billion. In the subsequent year, non-life paid 70.52 billion just life N72.31 billion. In 2018, non-life insurers paid N98.70 billion while life operators paid N94.78 billion and in 2019, non-life paid N78.72 billion, as against life operators’ N107.17 billion. Meanwhile, the National Insu...