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AIICO Insurance Records N60.7bn Gross Premium

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Olalandu said that the N60.7 billion represented 21.3 per cent growth, when compared to the 2019 financial year figure of N50.1 billion.

He attributed the growth to continuous investment in the agency’s force, increased focus on partnerships and better relationship with corporates.

The spokesman said that the firm recorded an underwriting loss of N36.3 billion in 2020 compared to N7.7 billion in 2019.

He hinged the loss on two main factors — reserving requirements for new policies underwritten in the life business in 2020 and changes in actuarial reserves in the life business for policies written in 2020 and prior years.

“There were significant movements in investment yields which affected the value of liabilities and assets in our life business.

“On the short and long ends of the yield curve, yields declined by about 7.7 per cent and 5.5 per cent respectively in 2020.

” The effects of these changes are reflected in the change in life and annuity funds, as well as fair value gains or losses on the income statement.

” In addition, changing client preferences mean that there has been a change in our retail product mix.

“Some of these products require higher reserving requirements which results in an increase in our liabilities, thereby reducing reported underwriting profits, ” he said.

According to him, the underwriting performance in the general business also declined due to increased claims in fire because of the civil unrest across the country and special oil lines.

Olalandu said that the investment income of the insurer grew by 13.1 percent year-on- year to N11.7 billion in 2020 financial year from N10.4 billion in 2019 financial year from increased assets under management.

He said profit before tax from continuing operations declined by 22.6 per cent year-on-year to N4.6 billion in 2020 financial year from N6.0 billion in 2019 financial year.

According to him, the drop was due to the lower-than-expected profits in the company’s Life business as a result of higher-than-expected reserving requirements/low yields.

“However, our General Insurance and Wealth Management businesses increased their contribution to profits,” he said.

Olalandu said that the profit after tax from continuing operations declined by 12.9 per cent year-on-year to N5.0 billion in 2020 from N5.7 billion in 2019 financial year.

He said profit for the year declined by 11.1 per cent year-on-year to N5.2 billion in 2020 financial year from N 5.9 billion in 2019 financial year.

The spokesman said the company’s total asset increased by 52.4 per cent to N 243.1 billion in 2020 financial year from N159.5 billion in 2019 financial year.

According to him, AIICO’s total liability also grew by 59.6 per cent to N 208.4 billion in 2020 financial year from N130.6 billion in 2019 financial year.

He said the firm’s total equity increased by 19.9 per cent to N34.7 billion in 2020 financial year from N28.9 billion in 2019 financial year.

The company’s Managing Director, Babatunde Fajemirokun, was quoted  as saying that the pandemic caused a questionable global marketplace and led to a global economic upheaval.

Fajemirokun explained that the Nigerian economy slipped into its second recession in five years, with the business environment further impacted by incidents of civil unrest.

“Despite these unprecedented macroeconomic disruptions, AIICO grew its total assets by 52.5 per cent in the year under review.

“We delivered sound results having taken decisive early actions to protect our workforce, improve our financial strength, streamline operations and reinforce our distribution strategy.

“Over the past five years, we invested substantially in human capital and technology to significantly elevate our customer experience.

“This resulted in our gross written premiums growing 23.6 per cent year-on-year despite restrictions caused by the pandemic, ” he said.

According to the managing director, the company’s financial position remains strong, inspiring confidence in its ability to assume the risks its customers wish to transfer.

Fajemirokun said the insurer’s investors showed their commitment, as its rights issue announced in September 2020 was oversubscribed by about 26 per cent.

He noted that the capital was deployed judiciously, generating risk-adjusted returns for its shareholders and ensuring that it continues to keep its promises.

(NAN)

 

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Banks’ CEOs Hold Emergency Meeting Over BDCs’ Forex Ban 

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Bank Chief Executive Officers on Thursday, held an emergency meeting on how to ensure compliance with the new forex directive of the Central Bank of Nigeria.

After the meeting, they spoke during a webinar organised to give an update on the banks’ preparedness to be the main channel of forex distribution, following the recent discontinuity of forex supply to the BDC operators by the CBN.

The executives assured the public that banks would make forex available to customers in accordance with the CBN’s directives.

After the last Monetary Policy Committee meeting, the Central Bank Governor, Godwin Emefiele, had ordered all Deposit Money Banks to set up teller points at designated branches across the country to fulfil legitimate FX request for personal travel allowance, business travel allowance, tuition fees, medical payments and SMEs transactions, among others.

Speaking at the webinar, the Group Managing Director/Chief Executive Officer, Access Bank Plc, Herbert Wigwe, said, “The banking industry as a whole was willing and ready to carry out this function. The banks have very strict compliance measures, in terms of verification and making sure that people who do apply are eligible.

“All Nigerian banks will be able to meet these requirements. If you look at all the branches nationwide, you will know that the banks have more than enough capacity to do this.”

He said if the banks saw any compliance issues, or people attempting to do things cunning, they would be reported to the CBN because the banks would ensure full compliance with the order.

The Group Chief Executive Officer, Guaranty Trust Holding Company Plc, Mr Segun Agbaje, while speaking on the capacity of the banks to meet the customers demand, said, “It is not only the CBN that has the ability to fund the market; the banks also have the resources to meet the demand, and we have agreed collectively that it will start immediately.”

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NERC: Over 1m Electricity Consumers Have Received Prepaid Meters

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Labour Warns FG Against Electricity Tariff Hike 

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The Nigeria Labour Congress faulted plans to allegedly sell the Transmission Company of Nigeria, saying it will lead to an increase in electricity tariff.

The NLC President, Mr Ayuba Wabba, said this in a statement titled, “This Kite will not Fly’’ on Friday.

Wabba explained that instead of allegedly planning to sell the transmission company, FG should focus on improving the electricity supply.

He described the attempt to hand over the TCN to a few ‘privileged’ Nigerians as self-serving, obtuse, odious, morally reprehensible and criminal.

The NLC president said, “The TCN is a strategic economic asset of immense national security implications. This is because the TCN traverses all nooks and crannies of Nigeria.

“It will be wrong that our country will be deliberately exposed to an avoidable vulnerability and thus, provide an opportunity to others to restrain the Nigerian state.

“We apprehend that the planned sale of the TCN is only an attempt to further confound the people and concurrently raise electricity tariff. Unfortunately, this time around, Nigerians have had enough.

“The government cannot promise improved power supply to consumers by the planned sale of TCN. The under-the-table scheming as transparent privatisation cannot pass muster.

“It is an unsavoury narrative for our country, that even the privatised assets, which have survived the rapacity of the new owners, have been turned into unrealisable collaterals for unpayable loans.

“This constitutes a bone stuck in the throat of financial institutions and sundry creditors.”

Wabba explained that the plan would “fundamentally weaken the security of the nation and above all, deprive the people of their age-old investments in the commanding heights of the Nigerian economy”.

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