NAICOM approves Mansard Insurance 2013 account, receives seven firms’ reports

The 2013 financial account of Mansard Insurance Plc has been approved by the National Insurance Commission (NAICOM), bringing the number of firms that have scaled the approval hurdles to three, as those of Custodian Life and General Insurance had earlier been endorsed.

Commissioner for Insurance, Fola Daniel

The Commission in a publication on its website said on Tuesday, April 8, the accounts of Custodian Life Assurance Limited; Custodian General Insurance Limited and Mansard Assurance Plc have been approved, while those of Zenith Life Insurance Limited; NSIA Insurance Limited formerly (ADIC); FBN Life Assurance Limited and Cornerstone Insurance Plc were being reviewed.

With the approval Mansard Insurance can now proceed with its annual general meeting slated for April 24, at Federal Palace Hotel in Lagos. The firm is making a final dividend payout of 8k to its shareholders.

The firm said diversified investment base, expansion in retail business and aggressive market penetration helped spurt its 2013 financial performance.

For the year ended December 2013, the underwriting firm grew gross premium written down by nine percent to N13.59 billion from N12.44 billion in 2012.

Net premium income in the review period rose by six per cent to N7.50 billion from N7.11 billion in 2012, while net profits surged by 31 per cent to N2.09 billion in  backs by tax write backs.

Its Chief Client Officer Tosin Runsewe said: “We achieved growth in a rather difficult year where the industry experienced a decline in growth rate. Growth was stifled by the ‘No Premium, No Cover’ regulation.

“The institutional end of the market was most affected. On the other hand, we had a much better cash flow into the business reflecting our compliance with the regulation”.

The firm has utilised the resources of the owners of the business efficiently as return as Return on Average Equity (ROAE) moved to 15 percent in FY13 from 12 percent as at FY12,

In addition, Return on Average Asset (ROAa) shrank to 8 percent in 12M13 as against 16percent in 12M12.

Net margin which measures the profitability and efficiency of a firm climbed to 15.37 per cent in 2013 from 12.05 per cent in 2012.

Earnings per share EPS increased by 35.71 percent to 19k from 14k in 2012.

“This is the first time, since our renaissance, that we would record a single digit growth, but we understand the peculiarities of 2013. We are unwearied because we are seeing growing numbers in Mansard’s penetration of a resilient market,” said Rashidat Adebisi, Chief Financial Officer of the company.

“We also find the 2013 financial year interesting as we saw retail business being a major driver of both revenue and profit.”

Cash and cash equivalents were up by 89 per cent y/y to N6.16 billion compared to N3.25 billion in the corresponding of 2012.

 Mansard’s total assets in the review period increased by 13 percent y/y to N36.13 billion from N32.11 billion as at 2013FY, while shareholders fund grew slightly to N14.27 billion.

“To this end, we successfully opened three more Mansard Welcome Centres in Lagos and a branch in Port Harcourt. This brings our distribution network to 14 Mansard Welcome Centres and 2 Branches in Abuja and Port Harcourt,” said Adebisi.

 Operating expenses ratio in the review period jumped to 49 percent as against 41 percent in 2012, while cost to sales ratio climbed to 64 per cent in 12M13 from 57 per cent in 12M12.

The insurance company’s share price closed at N2.21 on the floor of the Nigeria Stock Exchange.

Market capitalisation on the same day was N22.11 billion making it the largest Nigeria insurance company by market value

“Overall, we achieved 31 per cent increase in our net earnings as a result of significant growth in the income from our increasingly diversified investment base,” said Runsewe.

Mutual Benefits launches 36 products, promise to increase insurance awareness

L-R: Vice Chairman, Mutual Benefits Assurance Plc, Akin Opeodu; company Chairman, Chamberlin Oyibo, and Group Managing Director, Akin Ogunbiyi, at a media lunch of the company’s new 36 insurance products in Lagos.

Oluwakayode Adelowokan

In the effort to remain the leading microinsurance company in Nigeria, Mutual Benefit Assurance plc, has launched 36 insurance products which encompass both life and general insurance.

The products include, motor dealers complimentary Insurance, mega comprehensive insurance, event center insurance, advertising agency insurance, corporate office insurance, sales office insurance, hair salon insurance, law firm insurance, Accounting firm Insurance, Hotel Insurance, hospital insurance, fast food restaurant insurance, nollywood insurance, church insurance, mosque insurance, estate management insurance, landlord tenants and travels and tours agency insurance.

Others are school insurance, market and shopping complex insurance , laundry and cleaning service insurance, micro finance bank insurance, SME comprehensive insurance, oil and gas supply insurance, political Comprehensive insurance, Lady life assurance, Juvenile Life assurance, pilgrims welfare assurance, mortgage endowment insurance, celebrity life assurance policy, senior life assurance policy, mutual senior citizen plan, mutual benefit school fees guarantee scheme, MOAN NULGE policy, and mutual income continuity plan.

Speaking on the need for the 36 new products at a media lunch in Lagos, the General Manager Retail, Mr. Ademola Fagbayi, said the products were designed to mitigate risks from several sectors of the economy.

Fagbayi also said the company has concluded plans to increase its branch network to 200 by the end of 2016 with 36 branches across the country.

He maintained that the expansion of its branch network to 200 will not only increase insurance awareness in the country but will reduce the problem of unemployment in the country.

He added that the 36 new products introduced into the insurance market are focused to meet the needs of an average Nigerian in the grassroots, adding that the products are both life and general insurance.

Earlier in his address, the company’s Group Managing Director, Akin Ogunbiyi, said the company in the last seven years have been looking for a way of taking insurance in Nigeria into a forefront and touch lives through affordable and customized insurance products.

Ogunbiyi blamed that operators in the country have always rely on conventional business, adding that Mutual Benefits plc have realized that the problem of insurance in Nigeria is the problem of accessibility, poverty and non-availability of the products for the people. 

He noted that people buy fake insurance because they cannot find genuine ones. 

He assured that the company is poised to change that scenario, adding that the company will continue to develop products to meet the needs of the public.

The Group Managing Director, Akin Ogunbiyi, however applauded efforts of the National Insurance Commission (NAICOM) in granting approval for the products.

Why You Must Insure With Goldlink Insurance in 2014

Goldlink MD, Mr. Gbolahan

Oluwakayode Adelowokan

Goldlink Insurance Plc is unarguably among the leading insurance companies in Nigeria owing to it prompt claims settlement which stands it out among other underwriting companies in Nigeria.

Goldlink Insurance is a financial institution driven by a passionate client-centered philosophy, licensed to underwrite all classes of Insurance. These include: Life & Pension Business; Motor Business; Oil & Gas; Marine and Aviation; Special Risks; Property and Casualty; Engineering and Contractor All Risks, among others.

The company’s corporate theme is ‘Innovation driven by Experience’ and has been committed to building trust and confidence through delivery of first-class service. 

Meanwhile, Nigerians today have not seen reasons why they should buy any of the available insurance policies owing to the refusal of some insurance companies to settle claims whenever the need arise.

Managing Director, Goldlink Insurance Plc, Gbolahan Olutayo, enumerated major reasons why Nigerians must chose the company ahead of other insurance companies in the year 2014.

Olutayo said one of the reasons that underline the heavy patronage the company enjoy from her customers is embedded in its vision for excellence and exceptional service delivery.

This, he said through the synergy of technology and all its stakeholders, has powered it high agility and commendable operations despite the existing streamlined business environment the industry are witnesses to. “This has thus carved a niche for our brand and business”, he added.

According to Goldlink boss, “Our deployed state-of-the-art technology has facilitated the automation and optimization of our internal and external processes with resultant reliable and efficient service delivery to our clients, an important factor that guarantees our success in all areas of our operations.

“Our core selling point is ‘prompt claims settlement’. This is the company’s way of reassuring our clients and the insuring public of our stance: Indemnity and provision of compensation at the time of loss.

“As a composite Insurance Company, Goldlink paid a total sum of N1.4billion in 2013 to our various insured, in the following breakdown: N872.5 million for General Insurance Business and N569.8 million for Life Business.”

In order to consolidate the prompt claims settlement culture, the Managing Director maintained that Goldlink, upon notification, keeps reserve for each and every claim immediately.

He stressed that the company also engage the services of competent and qualified Engineers and professional Loss Adjusters for immediate claims’ investigations and handling, where necessary. 

“We maintain 24 hours cash-call funded accounts with our major Bankers in settling urgent claims’ demands. 

“In order to decentralize our claim-handling and administration process, our Branch Managers are authorised (subject to their individual branch limits) to issue settlement offer to their concerned clients before recourse to the Head Office. 

“Above all, it is the company’s policy to deliver claims’ settlement cheques within 48 hours of the receipt of all duly executed Discharge Vouchers.”

On recent restructuring of the company Board by the National Insurance Commission (NAICOM), he said the move has repositioned the Company for increased productivity within the market. “The new Board is made up of veterans and professionals in various fields whose wealth of experience has given the Company a competitive edge in the Industry”, he added.

Allaying the fear in the public, Gbolahan Olutayo, said the firm’s vision and aim for its insured is “A Life without Fears!”, adding that that is why all its products, even the most basic process in the company have been designed and tailored to cater for the insurance needs of Nigerians, other nationals and the insuring public, irrespective of class, income, geographical location, religious beliefs, traditions and culture; thus removing fears from their considerations.

“Our branches and outlets have been strategically located across the country to enable us service our regular and prospective customers optimally.

“In addition, our Research & Business Development Department is working round the clock in market research and new customer-oriented products’ development that will meet all the needs of our existing and prospective clients; and also deliver on strengthening our rural area penetration and geographical expansion plan. 

“Goldlink gives back. We take our corporate social responsibilities activities seriously by sponsoring, collaborating with like-minds and contributing generously to community development projects and educational campaigns. Orphanages, Rehabilitation Centres, Radio Programme to mention a few, are not left out of this drive.

“We see this as an opportunity to further affect our community positively. Our track record in this light has put us at the forefront of the drive for a better community, and renewal of hope for the people.”

He however said it is Goldlink’s commitment to serve as it engage motivated workforce and have instituted a series of activities that are designed to sustain staff enthusiasm and performance toward delivering on our Company’s goals. “We see our staff as the greatest asset. Therefore, we keep investing and exposing them to the best global practice, through a process of training and re-training to ensure cutting-edge competitiveness, individually and corporately.”

“We are notably known for complying with rules and regulations that guide our business operations. Our company strives to comply with the letter and spirit of all insurance legislation and regulations, particularly as they apply to risk classification, privacy and disclosure. This further reassures the insured that we do not operate outside the confines of legitimacy and acceptable standard.

“We treat all underwriting information with the utmost confidentiality; and use it solely for the express purpose of evaluation and classification of risk. Hence, the information of our clients are held and kept confidential at all times.”

On the other hand, Olutayo assured that he, the Managing Director/CEO and all other top management are always accessible in order to make the process of decision-making more faster which will also aid prompt claims settlement.

NAICOM steps up fight against unethical practices

Oluwakayode Adelowokan

The National Insurance Commission (NAICOM) has step up fight against the high rate of unethical practices that have bedeviled the industry.

This was after the release of guidelines to moderate how commissions, rebates and returned premiums should be handled.

With the guidelines, NAICOM said it has become illegal for any Insurance Institutions to solicit, offer or allow commissions and/or rebates in the transaction of insurance businesses except as provided by the extant Insurance laws and guidelines.

Operators have be barred from henceforth not to solicited, deducted, offered or paid over-Riding Commission, business acquisition fees and other similar fees not provided for by the Nigerian Insurance Laws.

According to NAICOM, an insurer, who grants or receives a rebate, offer, demand, pay or receive commission contrary to Section 53(1)-(3) of the Insurance Act 2003 may, in addition to the penalty prescribed by Sections 53(4) and 76 of the Insurance Act, 2003, shall be liable to other penalties as prescribed.

“Each Insurer shall submit a quarterly return on the rebates, brokerage commission and other fees paid out or payable on all its production during the preceding quarter to the Commission, not later than 14 days from the end of the quarter”, NAICOM said.

An operator Ezekiel Oloriegbe reacting to the new initiative by NAICOM said: "The industry has to be sanitized a bit, or we will all fall together from the activities of the crooks who have infiltrated the industry, and are gradually chasing out the real professionals who are unable to cope with the crookedness now rampant."

Make policies words customer friendly, INEC tells Operators

Oluwakayode Adelowokan

L-R: Vice President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Kayode Okunore; Chairman, NCRIB, Lagos Area Committee, Mr. Patrick Ikponmwosa, and Resident Electoral Commissioner, Lagos State, Dr. Lolu Ogunmola, at the April general meeting of NCRIB, Lagos Area Committee in Lagos.

The Independent National Electoral Commission (INEC) has called on insurance operators in Nigeria to be more explicit and friendly with the wordings in insurance policies.

This is according to the Resident Electoral Commissioner, Lagos State, Dr. Lolu Ogunmola, who disclosed this on Thursday during the April general meeting of the Nigerian Council of Registered Insurance Brokers (NCRIB), Lagos Area Committee at the NCRIB secretariat in Lagos that the contract wordings contained in the policies are ambiguous for customers.

He mentioned, “words like willfully, recklessly, negligently, whereas, wherefore, to mention but a few sound too technical and scary to people who will ordinarily want to key into your products for their personal exigencies.”

Ogunmola therefore appealed to insurance operators to make the policies come in more friendly terms with the coverage and meanings clearly spelt out. 

Meanwhile, the Vice President of the Council, Mr. Kayode Okunore, said the ambiguous words and small imprint that is usually contained in the policies were in ‘bad old times’, claiming that things are now better since there is nothing to hide from prospective policy holder.

Okunore also said it is important for Nigerians to make use of the services of broker whenever it may want to buy any insurance policy because of their understanding of the language.

“Brokers are always available to protect the interest of every prospective policy holder because they will delete whatever they think are not meant to be in the policy.”

In his appeal to the Independent National Electoral Commission (INEC), a council member and the immediate past President of the NCRIB, Lagos Area Committee, Mr. Tunde Oguntade, urged INEC to stem down on the non-refundable bidding charges demanded from brokers when applying for accounts.