High insurance rates force the value of top insurers on H1-2021 -GCFRNG

High insurance rates force the value of top insurers on H1-2021 -GCFRNG

Map of Nigeria
lMDA prevents policy change

By Rosemary Iwunze

It seems that the insurance industry has come under pressure of huge increases and charges ahead of Gross Premium Written, GPW, a development that brought in company profits from 5.1 per cent to N16.8 billion in the first half of 2021, H1 2021, against N17 .7 billion recorded in the period corresponding to 2020.

While this development appears to be an economic downturn, industry analysts believe further performance indicators suggest a recovery that could lead to a positive signal by the end of the 2021 financial year.

While profits declined from 22.6 per cent to N12.3 billion in the period corresponding to 2019 from N15.9 billion in 2018, it rose significantly from 43.9 per cent to H1’20, a reversal that is now canceled H1 ’21.

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Gain profits still threaten to pay off growth faster than GPW, the company’s financial line in H1’21.

While industry insiders are optimistic that full-year performance will improve, they also point out that weak support from the federal insurance industry is still a major threat to GPW and the bottom line.

According to employers, the FG insurance policy has long been subject to renewal, although some submissions by ministries, departments and agencies, MDA, have been completed and are awaiting payment, but the government has not yet released funds for that. any.

An analysis of the financial performance of 17 insurance companies submitted to the Nigerian Exchange Group recently shows strong GPW with 23.2 per cent rose to N217.3 billion from N176.4 billion in the period corresponding to 2020.

Last year saw economic shutdown due to COVID-19 infection, GPW fell from 7.1 per cent to N176.4 billion in H1’20 billion, from N189.9 billion in the period corresponding to 2019.

In 2019, GPW jumped from 11.5 per cent to N189.9 billion from the N158.2 billion recorded in 2018.

Nonetheless, increases in bill payments, on the other hand, have been doing well in GPW as the number of speakers increased from 40.8 per cent in H1’21 to N91.8 billion from 65.2 billion and the corresponding time. 2020.

In 2020, when GPW saw a decline, payroll costs continued to rise, rising 0.9 per cent to N65.2 billion from 64.6 billion.

In 2019, disbursements increased by 19.6 per cent to 64.6 billion from the N54.5 billion recorded in 2018.

Employees are optimistic

Speaking on the department’s performance in H1’21, the CEO of Africa Reinsurance Corporation, Mr. Ken Aghoghovbia, said that the department’s performance in H1’21 is very good.

He said: “The first year has been a good one. We all know that with the increase in GDP in all relevant sectors over the past year and with the sharp decline in GDP caused by COVID-19, there is a current kind of recovery.

Rate rate, loss is not too high. Not the first half. ”

In a further statement, the CEO of Afriglobal Insurance Brokers Limited, Mr. Casmir Azubuike, said that this year’s performance so far has been commendable.

He said: “Compared to last year, the company has done well in H1’21 because the first half of 2020 is a real challenge for the sector because that is maximum time of COVID-19 period. “

Industrial production

A description of the company’s performance over the period under review shows that Universal Insurance has a GPW-to-Claims ratio due to GPW’s decline by 4.5 per cent to N2.1 billion from N2.2 billion. But alleged payments rose from 2,997.1 billion to N5.9 billion from N190.5 million.

GPW of Coronation Insurance declined from 10.8 per cent to N8.3 billion from N9.3 billion. Debt arrears rose from 81.3 per cent to N2.9 billion from N1.6 billion.

Veritas Kapital’s revenue shows a 63.2 percent increase in GPW to N3.1 billion from N1.9 billion. Payments rose from 224.1 per cent to N522.1 million from N161.1 million.

GPW Connectivity increased from 30.2 percent to N6.9 billion from N5.3 billion. Estimates of salary arrears at 180.5 per cent to N1.02 billion from N363.6 million.

Sunu Assurances GPW grew 53.2 percent to N3.7 billion from N2.4 billion. Deficits are said to have risen from 134.5 per cent to N1.9 billion from N810.4 million.

Consolidated Hallmark GPW increased from 15.1 percent to N6.1 billion from N5.3 billion. Deficits are said to have risen from 109.1 percent to N2.3 billion from N1.1 billion. Nem Insurance GPW increased 24.8 per cent to N16.1 billion from N12.9 billion. Deficits are said to have risen from 105.3 per cent to N3.9 billion from N1.9 billion.

GPW Prestige Insurance increased by 38.5 per cent to N5.4 billion from N3.9 billion. Deficits are said to have risen from 53.3 per cent to N2.3 billion from N1.5 billion.

AIICO GPW grew 17.5 percent to N37.5 billion from N31.9 billion. Deficits are said to have risen from 41.3 per cent to N20.9 billion from N14.5 billion.

Companies have the best GPW-Claims ratings

On the basis of the charges passed to GPW, the two companies recorded a change of circumstances.

Guinea Insurance recorded a 57 percent increase in GPW to 807.8 million from N514.4 million. Estimates are down from 29.9 percent to 70.4 million from 100.4 million. Regency Alliance GPW increased from 2.4 percent to N4.2 billion from N4.1 billion. The proposed debt fell from 0.1 per cent to N1.096 billion from N1.097 billion.

For companies whose GPWs exceed their stated wage bill, Revenue Gains is the first to increase by 50 per cent at GPW to N15.3 billion from N10.2 billion. Deficits are said to have risen from 23.6 percent to N6.8 billion from N5.5 billion.

Lasaco Assurance GPW increased from 40.6 percent to N9.7 billion from N6.9 billion. Deficits are said to have risen from 26.7 percent to N1.9 billion from N1.5 billion. Cornerstone GPW gained 34.3 percent to N10.8 billion from N8.04. Deficits are said to have risen from 9.5 per cent to N2.3 billion from N2.1 billion.

The Trust GPW government raised 31 per cent to N7.9 billion from N3.3 billion. Deficits are said to have risen from 26.7 percent to N1.9 billion from N1.5 billion.

Mansard GPW shares rose 21.9 percent to N37.2 billion from N30.5 billion. Deficits are said to have risen from 20.6 per cent to N12.3 billion from N10.2 billion. Custodian Investment GPW increased from 20.5 per cent to N42.2 billion from N35.01 billion. Deficits are said to have risen from 9.9 per cent to N23.2 billion from N21.1 billion.

Staff reaction

Speaking on the performance of the company, the Chief Executive Officer of the FBN insurance company, Mr. Olumide Ibidapo, said that it was a wonderful performance considering the difficult economic situation.

He said: “Looking at Q1 of 2021, the company saw more than 4 percent controversy. In Q2 2021, we are now growing more than 15 per cent of which is a good performance even though 2020 is the closing year. So any major performance in 2021 will reflect this positive growth. So to look at the industry as a whole, it is a good job considering the difficult economic situation in which we work. ”

Looking forward to the rest of the year, Ibidapo said: “It is a difficult journey especially to look at the 2020 events and the consequences of the EndSARS crisis and economic locks. According to insurance, much of the claims following the EndSARS event have been heavily settled with billions of naira being claimed by insurance companies.

The results are also good. The second half of the year would be better. ”

However, the head of Afriglobal Insurance Company, Mr Casmir Azubuike said the company would have done well if only the government had accepted its insurance services as well as the economy as a whole.

Azubuike said: “This industry has done well so far but it could be better. The reason for good performance is obvious as the economy is not improving, the government is not paying insurance premiums when the time comes, some governments requested by parastatals have finally waited to pay, so far they have not been able to release the money.

“This goes a long way in showing that there is a declining budget. For companies and businesses, the report is no different. The company is not doing well.

“You and I know that in this economy, insurance is one of the last things people consider when they list priorities. So companies set out what they should get insurance for just to make sure they save money.

Discontinuation of the market also suffers because when the ability to access People Falls is critical, it is immediately affected by support and consumption.

“People are still recovering from the effects of disease and locks. Many companies are still losing money due to last year’s locks, and many of them are still trying to lift as much as possible. they are starting again.is actually having an impact across the insurance industry.

“Insurance Life Group is one of the compulsory insurance policies mandated by the Insurance Act of 2003. One would expect the government to be the first to enforce the law before forcing others to follow it but you There are cases where the government parastatals sends a quote to the insurance company to have them registered and properly organized and the law will be in place for a new amendment but you hit the payroll.

“Part of the government’s commitment is not there and when you have a government that doesn’t prioritize their expenditures, but it’s kind of spending and borrowing unnecessarily, if you expect too much from them. , you will not receive it.

That is just what we see. “In turn, Aghoghovbia said that so far, that some insurance companies and insurance companies have sent out, the workers are looking at a good line from the market and end of year.

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