Revealed: Nigerian Workers NOT Insured For 2013

Inspite of the demise of several federal Government workers in 2013, Insuranceadvicenigeria.com can authoritatively reveal that Nigerian workers are yet to be insured for the 2013 insurance period. In effect, the dependants of deceased government workers who die in active service to their fatherland might not be eligible to compensation.
The Federal Government introduced Pension reforms in 2004, a package that includes the mandatory group life cover for workers at the instance of their respective employers. Section 9 (3) of the Pension Reform Act, 2004 states that every employer must “maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employee”.
The Federal Government led by example by instituting a Group Life Assurance Scheme for all its workers. This was being coordinated by the office of the Head of Service of the Federation. However, the scheme ran into hitches in the last three years due to funding challenges. There had been delays in premium payment to insurance providers resulting in delayed compensation
In 2012, the scheme was renewed almost nine months into the insurance period and only 41%  out of the total premium of N3billion has been paid so far. Yet, several claims had been reported for the year wit insurance companies finding it difficult to pay. Unfortunately,  NAICOM Guideline of “No Premium No Cover” for 2013 will not allow a repeat of the event of 2012 since cover can only commence on the date of full payment of the premium due.
The Nigerian Council of Registered Insurance Brokers (NCRIB) recently lamented that the failure of government to honour its financial obligation was impacting negatively on the insurance industry as well as the well being of its workers.
It would be recalled that about 47 policemen died in May in Nasarawa  State. What about several deaths caused by the current insecurity challenges in the Nigeria- kidnapping, armed robbery, Boko Haram etc?. Something urgent needs to be done!

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Islamic Insurance: Takaful Guideline Released By NAICOM

In line with the provisions of the 1997 Insurance Act, and the need to complement the current drive for Financial Inclusion to increase insurance penetration in Nigeria, the National Insurance Commission (NAICOM) hereby announces the release of its Takaful-Insurance Guidelines and Registration Requirements to the Insurance Industry and other stakeholders.

Consequently, all intending applicants seeking license from the Commission to transact takaful-insurance business in Nigeria must possess the followings:
·       Certificate of Registration as a full-fledge takaful-insurance Company in accordance with International best practice
·       Such a Company must have, as part of its name, words or terminologies  that connote takaful operations
·       The company must maintain a minimum deposit in a non-interest financial institution at all times
·       Provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles
        of the Company
·       Establishment of Investment Policy for the participants’ Risk Fund
Intending applicants (companies) are advised to visit the Commission’s website on www.naicom.gov.ng to access the guideline.
When in doubts, applicants are enjoined to seek further clarifications from the Commission.

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West Africa: Maritime Business In Danger As Pirate Attacks Rise

Ruthless Nigerian pirate gangs have expanded their dastardly acts of piracy hundreds of miles beyond their home waters in the last three years. After Benin, pirates stepped up attacks further along the coast in Togo, before heading to Ivory Coast – the Gulf of Guinea’s second-largest fuel refinery after Nigeria.
In 2010, the International Maritime Bureau (IMB), which has monitored global piracy since 1991, recorded 33 attacks in the Gulf of Guinea. Last year, that figure jumped to 58. Analysts say widespread under-reporting means the figure reflects just a fraction of the total, as there is little hope of rescue and reporting attacks bumps up insurance premiums. “We estimate there is about one attempted or actual pirate attack a day … with the chance of it going to almost two a day if present trends continue,” said Michael Frodl, head of U.S.-based consultancy C-Level Maritime Risks.
Pirates’ use of rocket-propelled grenades to halt ships leave Ivory Coast’s police feeling helplessly outgunned.
Increasing piracy in the Gulf of Guinea region, which includes Africa’s No. 1 oil producer Nigeria  is jacking up costs for shipping firms operating there. This is also having negative effects on maritime business and insurance costs.
Recently the  Nigerian Armed pirates attacked an oil products tanker off the coast of Nigeria in West Africa and abducted an unknown number of crew, security sources said. The Nigerian-flagged MT Matrix was boarded by gunmen in the June about 40 nautical miles off the coast of oil-producing Bayelsa State, two security sources said, in a stretch of water often targeted by pirates.
There were 12 Pakistani and five Nigerian crew aboard the vessel when it was attacked, one of the sources said. A spokesman for ship operator Val Oil Trading, who declined to give his name, confirmed there had been an “incident”, without giving further details.
Andrew Varney, of British-based security firm Port 2 Port Maritime, said the Matrix’s low freeboard – the distance between a ship’s railings and the water – and slower speed made it vulnerable to being boarded.“This latest incident further highlights the ability of these determined, adept criminals to attack vessels underway and the increasing migration from cargo theft to risk of kidnap for ransom,” Varney said. In May, there were two attacks in the Gulf of Guinea where foreigners were kidnapped and released a few weeks later.
Security sources believe ransoms were paid – an increasingly lucrative business for criminal gangs. “The risk of offshore kidnap for ransom remains high off Nigeria, particularly off Bayelsa and Rivers states,” security firm AKE said, referring to the southern Niger Delta region where much of Nigeria’s oil is produced. International navies have not launched counter-piracy missions in the Gulf of Guinea, leaving the many vessels that anchor off Nigeria vulnerable to attack.
Pirates’ use of rocket-propelled grenades to halt ships leave Ivory Coast’s police feeling helplessly outgunned.

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Court Liquidates IGI Subsidiary

In a bid to protect policy holders, the National Insurance Commission (NIC), Ghana,  recently secured a court order to take over the IGI subsidiary. The move  will pave way for the eventual liquidation and closure of the company’s operations in Ghana.
The Commission, whose mandate is to ensure effective administration, supervision, regulation, monitoring and control of the business of insurance to protect the insurance industry and policy holders cited the Cash flow insolvency issues and operational difficulties faced by IGI Ghana, which had made it difficult to settle and pay claims as they fell due, as reason for its intervention. IGI had long indicated its resolve to divest from Ghana and allow NIC Ghana to take over the company, after it was obvious it can no longer cope with the operating environment in Ghana.
It was gathered that the commercial court, on the recommendation of NIC, has appointed Mr. Asante Marfo-Ahenkorah (President of Ghana Insurance Brokers Association- GIBA), and , Mr. Daniel Afriyie (Managing Director of Claim Limited) as administrators of the life and general insurance business of the company in line with procedures to liquidate the assets of IGI after December, 2013. The administrators were given six-month duration to complete their work and the cost that will be incurred through the administrators’ activities will be borne by NIC and later reimbursed by IGI as instructed by the court. It was discovered that all the general insurance policies held by IGI’s clients have expired, except life insurance policy holders who will be affected by the liquidation process.   However, plans are underway to transfer them to other insurance firms that are robust enough and interested to accept the life insurance business of the insurer to enable clients continue being served.
IGI, a Nigerian-owned insurance firm with particular focus on special risks such as oil and energy, engineering, aviation, and industrial risk management, entered the Ghanaian market in 2008 when it acquired the operations of Network Assurance as part of its Pan-African expansion drive. The company, on entering the market, bought several shares of the publicly-traded SIC Insurance Company. However, IGI’s underwriting profit has been awful and recorded several losses, drawing concern about the company’s entry strategy.
However, Industrial and General Insurance (IGI) said it withdrew its holding in Ghana subsidiary due to hostile business environment, especially to Nigerian investors in that country. The company’s Deputy Managing Director, Mr. Rotimi Fashola, disclosed this while responding to alleged liquidation of the company in Ghana, saying irreconcilable differences with local partners are equally responsible for the company’s decision. According to him, “We have decided to pull out of Ghana due to irreconcilable differences with local partners and hostile business environment to Nigerian investors.”

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GTBank sponsors Lagos City Edition of Monopoly Board Game

Guaranty Trust Bank plc announced its sponsorship of the Lagos City Edition of the Monopoly Board Game in its effort to further project Lagos as a mega city of repute in Africa and the world. The Lagos City Edition of the Monopoly Board Game which seeks to promote several locations and monuments within Lagos was launched on December 11, 2012

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Kenya says Nigeria’s Dangote to build $400 million cement plant

Africa’s richest man, Nigerian Aliko Dangote, plans to invest $400 million in a cement plant in Kenya, the east African nation’s president’s office said.
Dangote owns various businesses under the umbrella company of Dangote Group, among them, Dangote Cement (DANGCEM.LG), which said in May it was investing $5 billion to build cement plants on the African continent.
He was part of a business delegation that was visiting Kenya with Nigeria’s President Goodluck Jonathan. The countries signed bilateral deals in sectors including tourism, agriculture and oil and gas.
“(President Uhuru Kenyatta) particularly cited the … decision by Nigerian tycoon Aliko Dangote to invest $400 million in a cement processing plant as an indicator
that an “exciting journey has begun”,” Kenyatta’s office said in a statement late on Friday.
The statement did not give details on timelines, or the plant’s capacity. There was no immediate comment from the company, Reuters reports.
Dangote Cement, Africa’s biggest, said earlier this year it would expand its pan-African production capacity to 55 million tons by 2016, without giving a comparable figure.
Other countries the cement company has previously said it planned to venture into include Cameroon, Ethiopia, Zambia, Tanzania, Senegal and South Africa.
Cement companies already operating in Kenya include Bamburi Cement (BAMB.NR), ARM Cement (ARM.NR) and East African Portland Cement (PORT.NR).
Kenya produced 412,529 tons of cement in July, up from 402,621 tons a month earlier, according to the Kenya National Bureau of Statistics. Cement consumption stood at
332,009 tons, from 341,942 tons a month earlier.

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GTBank strengthens footprint through aggressive branch expansion.

Shortly after the banking sector reform triggered bank customer migration, one of the banks that successfully attracted many customers was Guaranty Trust Bank plc (GTBank). Basking on this avalanche of patrons, the bank has embarked on branch expansion with particular emphasis on the electronic platform to ease pressure on its shop floors. 

Now dotting the nooks and crannies of the various cities and towns are the e-branches, which are positioned to give ease of transactions to its existing and growing customer base. This well-defined operating strategy will enable the bank to give 100 percent customer service at each customer’s experience with the bank. 

Guaranty Trust Bank plc, which was established in 1990, has within the last 22 years come to be recognised as one of the most innovative and service-focused banks in the Nigerian financial market space. 

The Group currently operates through 200 business locations in Nigeria with banking subsidiaries in Cote d’Ivoire, the Gambia, Ghana, Liberia, Sierra Leone and the United Kingdom. It employs 550 people across the three countries. There are also expectations of more branches coming alive before the end of 2013. 

GTBank recently announced its East Africa expansion with acquisition of a 70 percent stake in Kenya’s Fina Bank Limited for $100 million. Based on its unaudited consolidated financials as of March 31, 2013, Fina Bank had total assets of $338 million, gross customer loans of $184 million and customer deposits of $285 million. 

The acquisition would see GTBank expand its operations to three East African countries. The bank’s aggressive branch expansion is also expected to further drive its footprint on retail banking in addition to other services. 

The bank said customer satisfaction and service excellence are the foundations of its business, noting that it would continue to listen to its stakeholders and institute innovations that allow the bank provide services that surpass its stakeholder’s needs.
Guaranty Trust Bank plc was recently adjudged the African Bank of the Year in Morocco, and in its bid to further consolidate its position as the most service-focused and profitable bank in Nigeria, it recently upgraded its internet banking platform to make it more secure and to serve customers better, in addition to its innovation of the social banking platform on Facebook which allows customers to bank anywhere in the world. 

Segun Agbaje, managing director/CEO, Guaranty Trust Bank plc, attributes the bank’s achievement to discipline, a defined operating strategy, hands-on knowledge about the Nigerian market, and the passion of GTBank employees, who constantly strive to give 100 percent above customer expectations every single time. 

“We are a proudly African and truly international institution and are committed to the ideal that our stakeholders should be better off for partnering with us. This principle influences our operations, products, services style and company culture,” Agbaje said.
Guaranty Trust Bank plc has continued to consolidate its position as a foremost African brand through adherence to high corporate governance principles, strong financial performance and the introduction of innovative products and services to ensure its stakeholders are well satisfied each time they encounter the GTBank brand. 

These efforts, and the bank’s numerous achievements in the last 12 months, recently led to its recognition as the top Nigerian company in the banking industry, according to African Business’ Annual Rankings Magazine. 

The rankings, which incorporate companies that are listed on African stock exchanges, also include those that are listed on other bourses elsewhere in the world and global giants listed on two or more of the Johannesburg, London, Sydney and New York exchanges.
The bank has been recording impressive financial performance, culminating in a profit before tax of N103 billion for the year ended December 31, 2012. That performance put the bank as the first to cross the N100 billion profit before tax milestone from continuing operations at both bank and group levels. GTBank had also closed the 2012 balance sheet size of N1.73 trillion, up from N1.608 trillion in 2011, while total assets and contingents stood at N2.26 trillion, up from N2.14 trillion in 2011. 

Deposit liabilities, which is a sign of customers’ confidence in the bank, rose to N1.15 trillion in 2012, reflecting a decent growth of N120 billion from the N1.03 trillion closing position in the corresponding period of 2011. Return on equity (ROE) and return on assets (ROA) closed at 33.9 percent and 5.2 percent from the 23.2 percent and 3.7 percent recorded in 2011, respectively. Agbaje attributed the bank’s success to its adherence to a defined growth plan, high corporate governance standards and the cultural values for which it is known. 

He said these factors, in addition to a resourceful board, an in-depth understanding of the market and the passion of GTBank employees, have enabled the bank to grow market share and continue to avail its stakeholders of value-adding services. 

At the Nigerian Stock Exchange on Tuesday, GTBank released its half-year (H1) 2013 result which showed that Gross Earnings rose to N124.202 billion from N113.526 billion in the preceding period of 2012, indicating 9.4 percent growth. Also in the H1’2013, the bank recorded profit of N49.014 billion as against N45.551 billion in 2012, up 7.6 percent. Basis Earnings per share rose to N1.73 from N1.59, up 8.9 percent. In H1’ 2013, the bank grew its deposits to N1.272 trillion from N1.172 trillion, up 8.5 percent. 

“We expect the Q2 2013 results to go some way towards addressing concerns which surfaced shortly after the NSE published Q3 2013 forecasts (PBT: N20.7 billion, PAT: N16.6 billion) in June,” analysts at FBN Capital said in their first reaction on the H1’13 result of GTBank plc. 

“We do not place undue emphasis on the NSE forecasts because they are less reliable than those provided by the banks directly. The bank had indicated to us that the forecasts were deliberately conservative. The H1 annualised return-on-equity (ROE) stands at 34.9 percent, implying that even management’s full-year guidance of ‘above 25 percent’ may prove conservative (we should acknowledge the other comprehensive income line as a caveat),” they added. 

Olubunmi Asaolu, lead team of analysts at FBN Capital, said, “Consensus full-year 2013 PBT is N108 billion, shy of the N114 billion if we annualize the H1 result. We would expect slight upgrades to consensus earnings on the back of these results, once the impact of the hike in the cash reserve ratio (CRR) is factored in. We estimate less than 5 percent earnings per share (EPS) impact from the latter. All in all, a reassuring set of results from GTBank. Our estimates are under review. We rate GTBank shares Neutral.” 

  

Source: www.businessdayonline.com

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