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African Trade Insurance Agency (ATI) Welcomes Cameroon as its 19th African Member State

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African Trade Insurance Agency - Investors King

The African Trade Insurance Agency (ATI) is pleased to announce the joining of the Republic of Cameroon as its 19th African Member State. Cameroon has joined with a subscribed capital contribution of EUR 11.37 Million, following financial support from the European Investment Bank (EIB) for the country’s membership in ATI.

Cameroon’s membership in ATI will enable the Central African nation to benefit from ATI’s Guarantees to attract more foreign direct investments, and boost regional and international trade. Whereas ATI’s risk mitigation and credit enhancement tools act as catalysts for the strengthening and diversification of the country’s economy, the Government of Cameroon will also be in a position to access a viable option to help in its quest to reign in debt levels.

Membership in ATI has come at the opportune time as it is aligned with Cameroon’s national development strategy 2020 – 2030 (NDS30), whose objectives include becoming an emerging country with enhanced exports and opening up of local markets to foreign direct investments. ATI’s existing pipeline of solid projects, mainly in the financial and manufacturing sectors, will provide a good foundation to the realization of the country’s national development strategy (NDS30).

ATI has covered several of the flagship projects that are identified as core to the national strategic plans in Africa. These projects are key to boosting socio-economic development and generating Foreign Direct Investments inflows. ATI expects to continue playing a pivotal role in the implementation of these flagship projects in the continent.

On behalf of the Government of Cameroon, Mr. Sylvester Moh Tangongho, Director General of Treasury, Monetary and Financial Cooperation of the Ministry of Finance said: “Cameroon is delighted, thanks to the concretization of its partnership with the EIB, to officially join the shareholding of ATI. It is an important event for our country, which is resolutely turned towards the appeal and support of national and foreign investors. ATI offers us additional guarantees in this regard. This being the case, we are counting on ATI, by popularizing its services, to interest both our government, the entire network of insurers based in Cameroon, as well as investors, in the real added value that this membership offers them.”

Manuel Moses, CEO of ATI, noted, “We thank the government of Cameroon for its commitment to ATI, which marks a welcome expansion in the Central African Region. We applaud this strong vote of confidence and look forward to working closely with the government and the private sector to identify priority projects and offer our robust risk mitigation solutions for Cameroon’s post-pandemic economic recovery and development financing initiativesWe also thank the European Investment Bank for its continuous support.”

Thomas Östros, Vice President of the European Investment Bank, commented “Unlocking investment and facilitating trade is crucial for economic development and strengthening resilience to the diverse health, business and social challenges posed by the COVID-19 pandemic. The European Investment Bank is pleased to support Cameroon’s membership of ATI that will allow the country to benefit from investment insurance essential for sustainable growth in the years ahead. As the EU Bank, the European Investment Bank is committed to supporting private sector and sustainable infrastructure development across Africa through close cooperation with African and European partners. This new joint engagement in Cameroon builds on the close cooperation between ATI and EIB across the continent.”

ATI’s membership drive is partly supported by the European Investment Bank, which to date has provided a combined EUR 49.11 million (approximately US$57.5 Million) in concessional lending for the membership subscription of Benin, Cameroon, Niger and Togo. The EIB is also supporting Chad, Burkina Faso and Senegal, all expected to join in the coming months.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Prudential Zenith Life Insurance Grows Profit After Tax by 75 in 2021

Prudential Zenith Life Insurance Limited grew profit after tax by a whopping 75% to ₦1.13 billion, up from ₦646 million recorded in 2020.

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Prudential Zenith Life Insurance

Despite rising economic uncertainties and the challenging business environment experienced in 2021, Prudential Zenith Life Insurance Limited grew profit after tax by a whopping 75% to ₦1.13 billion, up from ₦646 million recorded in 2020.

The company disclosed this in its audited financial statement for the period ended December 31, 2021, and obtained by Investors King on Monday.

In the financial statement approved by the National Insurance Commission (NAICOM), Gross Written Premium (GWP) and Annualized Premium Equivalent (APE) expanded by 16.3% and 9.3%, respectively. This was a result of the 27% growth recorded in new business acquisition for Group Life written during the period.

Similarly, investment income grew by 30% year-on-year due to a significant increase in the interest-generating assets of the company, and commission income also increased by 43% during the period.

The financial performance is a testament to the continued focus on investments, as the company remains committed to building a strong market-leading position in Nigeria by enhancing its capabilities, strengthening its digitally enabled multi-channel distribution network, and broadening the range of products and services that are available to customers in order to meet their needs.

Despite the challenges experienced during the Covid-19 pandemic in 2020, Prudential Zenith was able to achieve this strong growth in 2021 and is poised to continue improving its performance in the upcoming financial years. Prudential Zenith will continue to develop and launch unique products to meet customers’ needs, leveraging technology and its core corporate governance structure to deliver faster claims settlement. The company will also continue to prioritize the health, safety, and welfare of customers, who subscribe to its unique insurance product offerings.

Prudential Zenith Life Insurance Ltd (PZL) is a subsidiary of Prudential Plc., established in 2017 when Prudential Plc acquired a 51% holding in Zenith Life Insurance. PZL is one of the most capitalized companies in the Nigerian insurance industry with a wide range of individual products including savings & investments-linked products, endowment, and protection products designed to meet the needs of individuals and their families.  For corporate clients, the company’s product offerings include Group Life, Key-Man Assurance, Credit Life, School Fees Protection, and Mortgage Protection, ensuring that the welfare of clients’ staff and families are met.

Prudential Plc provides life and health insurance, and asset management in Africa and Asia, helping people get the most out of life by making healthcare affordable and accessible and by promoting financial inclusion. Prudential protects people’s wealth, helps them grow their assets, and empowers them to save for their goals. It has more than 19 million life customers and is listed on stock exchanges in London (PRU), Hong Kong (2378), Singapore (K6S), and New York (PUK).

Prudential Plc has insurance operations in eight countries in Africa: Nigeria, Cameroon, Cote d’Ivoire, Ghana, Kenya, Togo Uganda, and Zambia.  With over 1 million customers, Prudential Africa works with over 11,000 agents and six exclusive bank partnerships, with access to over 600 branches to bring value-added insurance solutions to its customers.

 

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AIICO to Realise N2.9 Billion in Profit in Nine Months Ended September 2022

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AIICO Insurance -Investors King

AIICO Insurance Plc has projected a gross written premium of N63.333 billion from January to September 2022.

Investors King observed from the company’s earnings forecast signed by the Managing Director (MD), Babatunde Fajemirokun, that the leading insurance company expected to generate a net premium income of N51.938 billion, while the commission received is estimated at N1.747 billion, bringing the total insurance income to N53.685 billion.

AIICO forecasts net claims incurred to be N34.096 billion, while the underwriting expense (commission and maintenance) is estimated to be N7.190 billion. Change in life fund on the other hand would peak at N12.092 billion, according to this projection.

For underwriting costs, the company expected to spend a total of  N53.378 billion in the period.

Profit before tax was estimated at N3.177 billion while the profit after tax for the 9 months prediction is N2.995 billion.

AIICO further estimates Profit from discontinued operations at N3.389 billion while profit after discontinued operations would be N6.385 billion.

The insurance firm explains that the Non-Life business represents 28% of the stated GWP while the Ordinary Life, Group Life and Annuity businesses represent 53%, 11% and 8% respectively.

Further, investment income will be driven mainly by bond investments and investments in other short-term financial assets.

Likewise, the reinsurance expenses is projected at an average of 12% of the projected gross written premium.

AIICO’s further estimations include:

  • Cash and cash equivalents – Opening N25,490 billion
  • Cash and cash equivalents – Closing N25,495 billion

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Finance Minister Encourages Literacy Education on Insurance

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Insurance - Investors King

The Minister of Finance Budget and National Planning, Zainab Ahmed has said that deliberate attention must be given to the low insurance literacy and education in the country.

Ahmed stated this while commissioning the new National Insurance Commission (NAICOM) portal during the weekend.

“The country’s low insurance literacy and education must be addressed, and that methods for insurance education, awareness, and enlightenment must be implemented,” she said.

“I believe with the commissioning of the NAICOM Portal today, the long overdue digital transformation of the insurance industry has begun with the attendant effect of increased penetration, reduction in the numbers of fake insurances, efficient service delivery and improving public trust in Insurance,” the minister added.

Ahmed mentioned that this also demonstrates the market’s abundance of growth opportunities, citing the need to develop new innovative products based on data and customer preferences, as well as the introduction of new distribution channels beyond what is currently available to reach new segments of the market.

While Ahmed praised the insurance regulator for this achievement, she pointed out that underwriters’ bad response to claim settlements has significantly contributed to the current public impression of the insurance industry, as well as a lack of trust and confidence in it.

“Indeed, prompt claims payment is the best advertisement for the industry, therefore all genuine claims that have been duly verified and due process followed, should be paid promptly.

“The Commission must put in place mechanisms to ensure Insurance companies meet their obligations to policyholders by paying claims promptly as that is the major reason they exist in the first place. Claims payment determines the valuable structure of the industry in the economy”, she stated.

She further urged stakeholders in the industry to consciously and intentionally expand insurance’s reach from major cities and a few states to other parts of the country, particularly rural areas, noting that low penetration in the retail end of the market must also be addressed through a vigorous push for inclusive insurance such as ‘microinsurance’ and ‘takaful’.

Investors King gathered that the NAICOM project was enacted to assist the regulator in transforming its operations, driving regulatory and supervisory functions, increasing operational efficiency, and improving business results using technology and data.

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