Insurance

IFRS 17 Implementation: Leadway Assurance Makes Steady Progress Towards Global Standardization

Leadway Assurance Leads the Way in Implementing IFRS 17, Setting the Standard for Nigerian Insurance Industry

Published

9 months ago

July 18, 2023

Leadway Assurance Limited, a leading insurance company in Nigeria, announced that it is making significant strides in the implementation of the International Financial Reporting Standard (IFRS 17).

The company’s commitment to adhering to this new global standard was highlighted at a one-day workshop organized for members of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos.

IFRS 17, previously known as IFRS 4 Phase II, is an International Financial Reporting Standard developed by the International Accounting Standards Board (IASB).

It aims to standardize insurance accounting practices worldwide, enabling better comparisons between companies, their historical performance, current financial positions, and risk exposures. The standard is scheduled to take effect from January 1, 2023.

Speaking at the workshop on the topic “Navigating the New Financial Reporting Standard,” Mr. Raphael Akomolede from the Finance Department provided valuable insights into Leadway Assurance’s progress regarding the implementation of IFRS 17.

He revealed that the company has successfully completed various stages of the implementation process, including Gap Analysis, Financial and Operational Impact Assessment, and the Design of Future State Finance Process/Technology Gap Analysis.

Also, Leadway Assurance has undertaken the Development, Documentation, and Review of the Target Operating Model, along with the crucial steps of Vendor Selection for IFRS 17 and the preparation of Technical Documents.

Akomolede further highlighted that Leadway Assurance’s relevant departments are currently working concurrently on System Testing and Implementation (pre and post).

They are also focused on reviewing and producing financial statements for 2021 and 2022, ensuring compliance with IFRS 17. Moreover, the company aims to produce interim IFRS 17-compliant financial statements, including transition disclosure.

Addressing the limitations of the existing standard, IFRS 4, Akomolede explained that IFRS 17 replaces it with a comprehensive set of guidelines for measuring insurance contracts.

While IFRS 4 allowed insurers to use local Generally Accepted Accounting Principles (GAAP), it lacked a consistent method for accounting for insurance contracts.

Consequently, investors found it challenging to discern which groups of contracts were profit-making and which were not.

Akomolede highlighted the transformative impact of IFRS 17, including improved comparability, relevant and updated measurement of insurance contract liabilities, a more intuitive presentation of financial performance and position, enhanced disclosure and transparency, and clear differentiation between insurance activities and investment activities.

Commending the National Insurance Commission (NAICOM) for their Roadmap for the implementation of IFRS 17 in the Nigerian insurance industry, Akomolede acknowledged the Commission’s relentless efforts since 2019 to ensure the full adoption of this global standard.

The workshop also featured Joshua Ogbeifun from the Strategy and Special Project Department at Leadway Assurance, who presented on “Breaking Down the Power of Synergy.”

Ogbeifun shared Leadway’s strategic approach to maintaining its dominant position in Nigeria’s insurance industry, both in terms of revenue and profit market share.

He emphasized Leadway Assurance’s commitment to becoming a customer-centric organization, employing an efficient sales process and structure, and leveraging partnerships to provide data-driven customer insights and customer-led solutions.

Ogbeifun described Leadway Assurance as a one-stop shop business group with associated companies, including Leadway Pensure, Leadway Asset Management, Leadway Health, and Leadway Capital & Trust Limited.

This diversification allows Leadway Assurance to offer comprehensive insurance solutions to cater to the varied needs of its customers across different sectors.

In his closing remarks, Mr. Olusakin Labeodan, the Chief Marketing Officer at Leadway Assurance, underscored the pivotal role of the media in business growth and national development.

Labeodan expressed his gratitude to NAIPE members for their attendance and called upon them to leverage their positions as journalists to disseminate the news about the benefits of insurance in Nigeria.

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Samed Olukoya

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

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Insurance

Heirs Insurance Group Unveils Revolutionary Website for Seamless Insurance Experience

Published

1 month ago

March 27, 2024

Samed Olukoya

Heirs Insurance Group has launched a website designed to revolutionize the insurance experience for its customers.

With a focus on simplicity, accessibility, and personalized service, the new website aims to streamline the process of obtaining insurance coverage and empower customers to make informed decisions about their insurance needs.

The website boasts a range of innovative features that make navigating insurance options easier than ever before.

From simple and intuitive navigation menus to personalized insurance recommendations, the website is designed to guide customers through every step of the insurance process quickly and efficiently.

According to Ifesinachi Okpagu, the Chief Marketing Officer of Heirs Insurance Group, the new website embodies the company’s commitment to delivering exceptional customer service.

“Today’s customers want simplicity, and this new website delivers on that request,” Okpagu said. “We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.”

One of the key features of the website is its personalized insurance experience, which takes customers through a short journey to help them identify the best insurance plan for their needs.

Whether customers are looking for coverage for their home, car, business, or loved ones, the website provides tailored recommendations to ensure they find the right insurance solution quickly and easily.

With its user-friendly interface and innovative features, the new website from Heirs Insurance Group sets a new standard for the insurance industry, making it easier than ever for customers to protect what matters most to them.

Insurance

AIICO Insurance Boosts Infrastructure Development with 5% Stake in InfraCredit

Published

4 months ago

December 21, 2023

Investors King

AIICO Insurance Plc has acquired a five percent shareholding in Infrastructure Credit Guarantee Company Limited (InfraCredit).

This strategic investment positions AIICO as the second domestic institutional investor admitted by the infrastructure credit guarantee institution, following Leadway Assurance Plc.

The infusion of capital from AIICO is set to elevate InfraCredit’s paid-in capital base to an impressive $175.14 million (approximately NGN 148.55 billion), translating into an aggregate guarantee issuing capacity of up to NGN 742.77 billion (about USD 875.7 million).

This equity injection will become part of InfraCredit’s core capital, enhancing its guarantee issuing capacity and contributing to the sustenance of its coveted ‘AAA’ credit rating.

InfraCredit, known for deploying innovative credit enhancement solutions, has been pivotal in mobilizing private sector financing for infrastructure projects across various sectors of the Nigerian economy.

AIICO’s investment underscores its commitment to bridging the infrastructure gap in the country, marking the evolution of a long-term partnership with InfraCredit.

Babatunde Fajemirokun, the Chief Executive Officer of AIICO Insurance, emphasized the company’s dedication to supporting infrastructure development.

He stated, “This investment is the evolution of what we at AIICO Insurance believe will be a long-term partnership with InfraCredit. Over the past two years, AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved.”

The Chairman of the InfraCredit Board of Directors, Sanjeev Gupta, welcomed AIICO as a new shareholder and highlighted the importance of fostering a strong partnership between the public and private sectors.

Gupta said, “AIICO’s investment is in line with our vision of creating a strong partnership between the public and private sectors. This partnership aims to attract private sector capital for infrastructure financing sustainably.”

Chinua Azubike, the CEO of InfraCredit, expressed enthusiasm about AIICO’s admission as the second private domestic institutional investor.

Azubike stated, “The admission of AIICO Insurance, the second private domestic institutional investor in InfraCredit, reinforces the confidence in the sustainability of InfraCredit’s unique business model.”

The AIICO Insurance equity investment is expected to further strengthen InfraCredit’s core capital base, expand its guarantee capacity, and facilitate deeper market penetration.

This collaboration aims to advance sustainable finance for impactful infrastructure projects in Nigeria, aligning with the nation’s broader goals for economic growth and development.

Insurance

Resilience Amid Challenges: Nigerian Insurance Giants Report 165% Surge in Profits

Published

5 months ago

November 22, 2023

Investors King

Against a backdrop of a challenging business environment and meager insurance penetration in Nigeria, thirteen leading insurance companies have displayed resilience by declaring a collective profit before tax (PBT) of N57.1 billion in the first nine months of 2023.

This signifies a 165% increase compared to the N21.51 billion reported during the same period in 2022.

The standout performers among these insurers include AXA Mansard Insurance, Cornerstone Insurance, and AIICO Insurance, which collectively contributed significantly to the sector’s stellar performance.

AXA Mansard Insurance, particularly, recorded a remarkable 471% increase in profit before tax, reaching N15.1 billion in the nine months ending September 30, 2023.

Notably, AXA Mansard Insurance stands out as the sector leader, declaring an interim dividend of 6 kobo per N2 ordinary share, payable to shareholders on December 15, 2023, showcasing a commitment to rewarding investors.

The remarkable financial performance of these insurers has had a tangible impact on the NGX Insurance Index, reflecting a 68.44% Year-to-Date growth as of November 17.

Analysts attribute this positive trajectory to the sector’s resilience and profitability.

However, the sector grapples with impending recapitalization efforts and the need for regulatory reforms. The proposed Consolidated Insurance Bill awaits presidential assent, promising transformative changes for the industry.

Analysts believe these changes, coupled with increased budgetary allocations from the Federal Government, will strengthen the sector’s capacity to contribute significantly to the nation’s GDP and employment creation.

As the industry anticipates legislative support, stakeholders remain hopeful for a new era of growth and global best practices in the Nigerian insurance landscape.