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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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Insurance

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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Stanbic IBTC Insurance Launches ‘The Good Life’ Campaign

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Stanbic IBTC Insurance, a subsidiary of Stanbic IBTC Holdings, has launched its life insurance campaign. Themed ‘The Good Life’, the campaign is geared towards creating awareness about the benefits of having insurance cover.

To kick off the campaign, a launch event was held where executives of Stanbic IBTC as well as several veterans within the creative industry spoke passionately about the need for Life insurance and the edge Stanbic IBTC Insurance delivers with bespoke and inclusive life assurance packages.

The event held at IBTC Place on Walter Carrington Crescent, Victoria Island, Lagos, also featured an unveiling of the official music video which featured actors Kate Henshaw and Segun Arinze and musician, Ric Hassani – singing their hearts away to the tune of “Insurance Cover Me.”

In his opening remarks, Dr Demola Sogunle, Chief Executive, Stanbic IBTC Holdings said Many Nigerians were just beginning to understand the importance of insurance but as an organisation, Stanbic had been very deliberate about educating both young and old about the advantage that the right insurance cover provides to life and property.


“Today, in taking that effort further, we launched what we have tagged: The Good Life Campaign to advocate the value that comes from having Life Insurance and the availability of multiple Life Insurance solutions from our Life Insurance Company, Stanbic IBTC Insurance.”

Speaking on the rationale behind the insurance campaign, Akinjide Orimolade, Chief Executive, Stanbic IBTC Insurance, said having a life insurance package is a necessity as it guarantees peace of mind and aids preparedness for unprecedented occurrences. He urged Nigerians to get life insurance covers and shun the belief that insurance can only be bought by only rich or old people.

“The Good Life campaign is aimed at creating awareness of several fully customised, innovative, life insurance solutions that enable Nigerians easy access to the good life. As professionals with vast knowledge of the insurance market, we can offer the most suitable policies for our retail and corporate clients, based on extensive research and conscientious needs assessment. Having a life insurance cover is a smart thing to do, especially in these uncertain times, especially as it covers beneficiaries from financial hassles when life happens.”

Stanbic IBTC Insurance has comprehensive insurance covers like Credit Life, Group Life, Education Endowment, Annuity, Sunset Plan and Term Assurance, amongst others.

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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.

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