Guinea Insurance Plc, one of the oldest insurance companies in Nigeria said it injected about N900 million as capital into its business in 2022 and is in the process of listing 1.8 billion shares.
The Managing Director/Chief Executive Officer of the insurance company, Mr. Ademola Abidogun disclosed this at the Nigerian Association of Insurance and Pension Editors’ (NAIPE) 2023 first quarter CEO’s Forum in Lagos.
Abidogun said the insurer has a lot of funds within its system and over N2billon cash under its management to do business.
He noted that the underwriting firm made the highest Gross Premium Written (GPI) of N1.4 billion in 2022, compared to the last ten years.
“We were also able to make underwriting profit. If you look at the statistics, Guinea insurance has consistently grown so much in its underwriting profit.
“When you check the financials, you will see that the core business of insurance is underwriting, which means; collect business, underwrite it and make profit,” he said.
According to Abidogun, the insurance company was working to improve its investment portfolio, as fund was essential to sustain a business.
The Managing director hinted that Guinea insurance’s claims payment method is one of the best in the market because the firm believes, one of the main reason for doing insurance business is to pay claims.
“If we pride ourself as one of the best in the industry in terms of claims payments, we must be able to pay claims after collecting people’s premium” Abidogun said.
According to him, while the underwriting firm had experienced some challenges few years ago in the market, it has been able to resuscitate its business between 2021 and 2022.
Abidogun noted that Guinea insurance also had to confront perception issues, because a lot of people think the insurer is a one man business, meanwhile it is a Plc with a very robust structure.
The managing director said that the insurance firm had started business well in year 2023 in terms of production and as at February, it had done over 300 percent of what it did same time last year.
“We will be able to deliver in terms of our plans for the year. The most important thing is for an organisation to have capacity, which has to do with financials and people driving the business and we will continue to evolve,” he said.
Emir Charges Insurers To Meet Obligations Adequately
The Emir of Kano, Alhaji Aminu Ado Bayero has urged the National Insurance Commission (NAICOM) to ensure insurance obligations are adequately met by the insurers, especially when the need to pay claims arises.
The Emir, who gave this charge when the Management of NAICOM led by the Commissioner for Insurance, Olorundare Sunday Thomas paid a courtesy visit to the Emir’s Palace in Kano on Tuesday, also urged Nigerians to embrace insurance as a way of relieving loss, especially in businesses and property loss.
He reiterated that insurance is an important aspect of human life as extensive research has shown that insurance is not conflicting with religious belief, especially with the coming of Takaful insurance.
The Emir equally commended the leadership of the Commission for the giant strides and efforts in developing the Nigerian insurance market.
He further thanked the Commission for the visit and promised to support insurance deepening in the country, even as he assured that he would consider the invitation to the National Insurance Conference and will personally attend the conference.
The Commissioner thanked the royal father for the warm reception and his acceptance to personally attend the National Insurance Conference scheduled for October 22 – 24, 2023, in Abuja.
The Commission thereafter named the Emir Aminu Ado Bayero as Royal Ambassador for Insurance in the country and commended his style of leadership since his takeover of the throne.
Experts Canvass For Laws To Ensure Survival Of Insurance, Pension Sectors
The Managing Director of APT Securities and Funds Limited, Kasim Garba Kurfi, has charged the government to put in place enabling policies and laws that support the survival of the sectors for them to continue contributing to the nation’s growth.
He described the insurance and pension sectors as the engine of growth of Nigerian economy considering the roles played by the two sectors in sustaining economic growth.
Kurfi, who stated this while delivering the theme paper at the 8th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos recently, said insurance and pension sectors today stand as engines for sustainable economic growth and forces to reckon with in every economy. The conference’s theme was “Role of Insurance and Pension Sectors In Building Sustainable Economic Growth Under The New Government”.
He highlighted the contributions of the two sectors to the national economy saying, “There is over N2.5 trillion assets managed by the insurance institution in Nigeria as of 31st December 2022.
“While there is over N16.6 trillion assets managed by the Pension Fund Administration as at 31st December 2022, the combination of the two institutions has a total asset of over N19 trillion. The role played by the two institutions in sustaining our economic growth left no one in doubt that they are instruments for most of the economic development
“Over N726 billion in premiums paid in the year 2022 according to the National Insurance Commission, while the industry also paid over N318.1 billion in claims to its customers within the same period. This is a remarkable achievement in comparison with 3.5% growth of Gross Domestic Product (GDP).”
He said insurance institutions give security to the future of the common people and aid economic growth upon happenings or allowance of specific event or disaster.
“Insurance represent promise of the future compensation in case of specific losses or in exchange for periodic payment called premium.
“Managing risk is very important for companies dealing with money or equivalent. The insurance industry promotes National development through wealth creation or protection. It primarily hedges against risk or contingent or uncertain loss.”
On pension, he said, “The contribution of pension funds that run over N16 trillion is pronounced in all phases of life. Many sectors of the economy benefit from excess funds that look for alternative ways to invest such as FGN SUKUK, GREEN BOND, and Infrastructures Bond, among many others.”
Kurfi said Pension ensures that every worker receives his/her retirement benefit as at when due. Ensure workers save in order to cater for future liability and old age. Provide long-term finance for the real sector. Stimulate the development of the capital market.
While condemning those agencies and institutions clamouring to exit Contributory Pension Scheme (CPS), Kurfi enjoined the government at all levels to discourage such moves for the interest of the Pensioners and the nation’s economy.
He said the contribution of insurance and pension sectors towards economic development is imminent and can be seen especially in driving the nation’s financial inclusion project.
NAICOM Encourages Nasarawa Residents To Embrace Insurance
By Sola Alabadan
In line with National Insurance Commission (NAICOM) determination to ensure that Nigerians enjoy the benefits of insurance, the commission took its insurance sensitisation campaign to Nasarawa State recently.
The Commissioner for insurance, Sunday Thomas and a delegation from NAICOM paid a courtesy visit on the Executive Governor of Nasarawa State, Engr. Abdullahi Sule to intimate him and members of his executive council about the benefits of insurance.
NAICOM has been striving to sensitise stakeholders on the benefits of compulsory insurances such as Insurance of Public Buildings, Insurance of Buildings Under Construction, Third Party Motor Insurance, amongst others,
The Commissioner for Insurance also used the opportunity to formally invite the Governor to the National Insurance Conference scheduled to hold from 22-24 October, 2023.
Responding, the Governor gave a personal testimony while he was still in the private sector of how the sugar refinery where he worked as the Managing Director was razed by fire but thanks to insurance, a newer and better one was built from the claims paid by the insurance company concerned.