IATA: Airlines Set for $119bn Loss in 2020 over COVID-19 Pandemic

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30/11/2020

The International Air Transport Association (IATA) announced a revised outlook for the global airline industry performance in 2020 and 2021. Deep industry losses will continue into 2021, even though performance is expected to improve over the period of the forecast.
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A net loss of $118.5 billion is expected for 2020 (deeper than the $84.3 billion forecast in June).
• A net loss of $38.7 billion is expected in 2021 (deeper than the $15.8 billion forecast in June).
Performance factors in 2021 will show improvements on 2020; and the second half of 2021 is expected to see improvements after a difficult 2021 first half. Aggressive cost-cutting is expected to combine with increased demand during 2021 (due to the re-opening of borders with testing and/or the widespread availability of a vaccine) to see the industry turn cash-positive in the fourth quarter of 2021 which is earlier than previously forecast.
“This crisis is devastating and unrelenting. Airlines have cut costs by 45.8%, but revenues are down 60.9%. The result is that airlines will lose $66 for every passenger carried this year for a total net loss of $118.5 billion. This loss will be reduced sharply by $80 billion in 2021. But the prospect of losing $38.7 billion next year is nothing to celebrate. We need to get borders safely re-opened without quarantine so that people will fly again. And with airlines expected to bleed cash at least until the fourth quarter of 2021 there is no time to lose,” said Alexandre de Juniac, IATA’s Director General and CEO.

2020
The COVID-19 crisis challenged the industry for its very survival in 2020. In the face of a half trillion-dollar revenue drop (from $838 billion in 2019 to $328 billion) airlines cut costs by $365 billion (from $795 billion in 2019 to $430 billion in 2020).
“The history books will record 2020 as the industry’s worst financial year, bar none. Airlines cut expenses by an average of a billion dollars a day over 2020 and will still rack-up unprecedented losses. Were it not for the $173 billion in financial support by governments we would have seen bankruptcies on a massive scale,” said de Juniac.
All major operational parameters in the passenger business were negative:

• Passenger numbers are expected to plummet to 1.8 billion (60.5% down on the 4.5 billion passengers in 2019). This is roughly the same number that the industry carried in 2003.

• Passenger revenues are expected to fall to $191 billion, less than a third of the $612 billion earned in 2019. This largely driven by a 66% fall in passenger demand (measured in Revenue Passenger Kilometers/RPK). International markets were hit disproportionately hard with a 75% fall in demand. Domestic markets, largely propelled by a recovery in China and Russia, are expected to perform better and end 2020 49% below 2019 levels.

Further weakness is demonstrated by passenger yields which are expected to be down 8% compared to 2019 and a weak passenger load factor which is expected to be 65.5%, down from the 82.5% recorded in 2019, a level last seen in 1993.
Operational parameters for cargo are performing significantly better than for passenger but are still depressed compared to 2019:
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Uplift is expected to be 54.2 million tonnes in 2019, down from 61.3 million tonnes in 2019

• Cargo revenues are bucking the trend, increasing to $117.7 billion in 2020 from $102.4 billion in 2019. A 45% fall in overall capacity, driven largely by the precipitous fall in passenger demand which took out critical belly capacity for cargo (-24%), pushed yields up by 30% in 2020.
“Cargo is performing better than the passenger business. It could not, however, make up for the fall in passenger revenue. But it has become a significantly larger part of airline revenues and cargo revenues are making it possible for airlines to sustain their skeleton international networks,” said de Juniac.
In 2019, cargo accounted for 12% of revenues and that is expected to grow to 36% in 2020.

2021
Airline financial performance is expected to see a significant turn for the better in 2021, even if historically deep losses prevail. The expected $38.7 billion loss in 2021 will be second only to 2020 performance.
On the assumption that there is some opening of borders by mid-2021 (either through testing or growing availability of a vaccine), overall revenues are expected to grow to $459 billion ($131 billion improvement on 2020, but still 45% below the $838 billion achieved in 2019).
In comparison, costs are only expected to rise by $61 billion, delivering overall improved financial performance. Airlines will still lose, however, $13.78 for each passenger carried. By the end of 2021 stronger revenues will improve the situation, but the first half of next year still looks extremely challenging.
Passenger numbers are expected to grow to 2.8 billion in 2021. That would be a billion more travelers than in 2020, but still 1.7 billion travelers short of 2019 performance. Passenger yields are expected to be flat and the load factor is expected to improve to 72.7% (an improvement on the 65.5% expected for 2020, but still well below the 82.5% achieved in 2019).
The cargo side of the business is expected to continue with strong performance. Improved business confidence and the important role that air cargo should play in vaccine distribution is expected to see cargo volumes grow to 61.2 million tonnes (up from 54.2 million tonnes in 2020 and essentially matching the 61.3 million tonnes carried in 2019).
A continued capacity crunch due to the slow reintroduction of belly capacity from passenger services combined with a higher proportion of time and temperature sensitive cargo (vaccines) will see a further 5% increase in yields. This will contribute to strong performance in cargo revenues which are expected to grow to an historic high of $139.8 billion.

Challenges to Recovery
While the industry will see improved performance in 2021 compared to 2020, the road to recovery is expected to be long and difficult. Passenger volumes are not expected to return to 2019 levels until 2024 at the earliest, with domestic markets recovering faster than international services. Several critical challenges need urgent attention:

Debt Levels and Financial Support: Airlines are surviving on financial life support from governments. Even after $173 billion of government support of various kinds in 2020, the median airline has just 8.5 months of cash to survive. Many have far less as the industry enters into the critical winter period, which is characterized by weak demand even in normal times.
While cash burn has diminished from the peak of the crisis, airlines are still expected to burn an average of $6.8 billion/month during the first half of 2021, before the industry turns cash positive in the fourth quarter of 2021.
“The financial damage of this crisis is severe. Government support has kept airlines alive to this point. More is likely needed as the crisis is lasting longer than anyone could have anticipated-and it must come in forms that that does not increase the already high debt load which has ballooned to $651 billion.
Bridging airlines to the recovery is one of the most important investments that governments can make. It will save jobs and kick-start the recovery in the travel and tourism sector which accounts for 10% of global GDP,” said de Juniac.

Closed Borders/Quarantine: The biggest factors impeding the industry’s recovery are travel restrictions and quarantine measure that effectively prevent a meaningful revival of travel. The most immediate and critical solution is the safe re-opening of borders using systematic COVID-19 testing. Longer-term, the widespread availability of COVID-19 vaccinations should enable borders to remain open without testing or restriction, but the timeline for vaccine availability is uncertain.
“We have the ability to safely re-open travel with systematic testing. We cannot wait on the promise of a vaccine. We are preparing for efficient vaccine distribution. But testing is the immediate solution to meaningfully re-open air travel. With 46 million jobs at risk in the travel and tourism sector alone because of plummeting air travel, we must act fast with solutions that are at hand. We have fast, accurate and scalable testing that can safely do the job. The airlines are ready. The livelihoods of millions are in the hands of governments and public health authorities. Governments understood the criticality of a viable air transport sector when they invested billions to keep it afloat. Now they need to protect those investments by giving airlines the means to safely do business,” said de Juniac.

Confidence
“The numbers couldn’t get much worse. But there is a way forward. With the continued financial support of governments to keep airlines financially viable and the use of testing to enable travel without quarantine, we have a plan to overcome the worst immediately. And longer-term the progress on vaccines is encouraging. Most importantly, people have not lost their desire to travel. The market response to even small measures to lift quarantine is immediate and strong. Where barriers have been removed, travel rebounded. The thirst for the freedom to fly has not been overcome by the crisis. There is every reason for optimism when governments use testing to open borders. And we need to make that happen fast,” said de Juniac.

Ecobank Unveils Smart SME Agency Banking Campaign to Empower Small Businesses

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30/11/2020

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Ecobank Nigeria has launched Smart Small and Medium Enterprise (SME) Agency Banking campaign targeted at empowering 100,000 entrepreneurs under the Ecobank SME and Agency Banking proposition. Emeka Agada, Head of SME, Ecobank Nigeria, said the initiative was introduced in line with the bank’s commitment to support the Federal Government and Central Bank of Nigeria vision for financial inclusion across the country.
Aside improving financial inclusion, this campaign also aims to create self-employment for new entrepreneurs and help diversify income streams of existing small businesses across Nigeria. He reiterated that Ecobank has made it easy for entrepreneurs and small businesses to become the Bank’s Agents under this initiative.
“This laudable initiative is to empower small businesses and create new entrepreneurs. It is open to every honest and enterprising adult capable of using smart phones and/ or Point of Sale (PoS) Machines as well as every small and medium enterprise subject to their meeting the terms and conditions as set out for Agents. Why not join the Ecobank Smart SME Agent network today and become a mobile financial services provider“, he stated.
Agada explained further that an Xpresspoint agent could perform basic banking services such as account opening, deposit collection for Ecobank, interbank transfers to other banks, card and card-less withdrawals, bill payment, airtime top-up, remittance services amongst others.
He said Agents will earn money through-fees and commission on all successful transactions done through the agency. Ecobank will also train the agents and provide branding materials for free.
In her comment, Mrs. Nike Kolawole, Head, Ecobank Agency Network lauded the Initiative and added that the Ecobank Agency proposition remains the best in the industry today. She encouraged small businesses to partner with the bank to drive financial inclusion and employment.
On a general note, Mrs. Kolawole emphasised that “banking has greatly evolved and has become closer to the people. With the introduction of Agency banking, no one needs to visit a bank branch to carry out a transaction. With your phone, you can perform your own transaction or perform transactions for other people on behalf of the bank and earn commissions. I encourage the youth and owners of small businesses (men and women) to use this initiative to expand their revenue streams while offering this value-added service to customers.”

African Insurers Facing Market Uncertainty over COVID-19 Pandemic

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28/11/2020

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Mr. O. S. Thomas
Commissioner for Insurance/CEO
National Insurance Commission (NAICOM)

According to the Africa Insurance Pulse 2/2020, “Growth perspectives of African re-/insurance markets”, launched today by the Africa Insurance Organisation (AIO), the COVID-19 pandemic posed severe challenges to Africa’s insurers. In response to the various types of lockdowns and social distancing measures decreed by the African governments, they had to assure continued customer service, staff health, adequate liquidity management and operational resilience.
For the remainder of 2020 and 2021, Africa’s insurers expect further uncertainty, as they state in this year’s edition of the African Insurance Pulse, which Faber Consulting conducted on behalf of the AIO. As in the past, this year’s 5th annual edition is based on diligent market research and in-depth interviews with insurer, reinsurers and brokers operating in Africa.
The Africa Insurance Pulse 2/2020 is sponsored by Africa Re, the leading pan-African reinsurance company and the largest reinsurer in Africa. Jean Baptiste Ntukamazina, Secretary General of AIO, said: “The COVID-19 pandemic has caught the global insurance industry largely unprepared. Those African insurance and reinsurance companies with a strong capital base, and the ability to distribute their products digitally were better equipped to weather the impact of the pandemic. This will enable them to capitalise faster on the business opportunities arising after the crisis.”

• Capital & digitalisation as unique strategic differentiators in times of COVID-19
Those African insurers with a strong capital basis and already established digital distribution channels were better prepared to deal with the impact of the COVID-19 crisis.
The combination of both factors protected them against the worst effects of the crisis and enabled them to maintain their client relations even during lockdown periods or in a social-distancing environment. As these insurers strengthened their market position during the pandemic, they will be even stronger in capturing those business opportunities, rising in the future.

• Regulators focused on protecting African policyholders
Following the outbreak of the pandemic, regulatory authorities have given re-/insurers more time to cushion the impact from the sudden contraction of the economy. At the same time, they encouraged re- /insurers to pay claims promptly.
Those re-/insurers operating according to risk-based capital regimes were better prepared to deal with the COVID-19 crisis.
Dr. Corneille Karekezi, Group Managing Director and Chief Executive Officer, Africa Re said: “Insurance regulation in Africa has significantly improved in recent years. Various regulators have pushed ahead, mandating the implementation of risk-based capital schemes or capital increases, as well as improved operations and risk management. At the same time, we witness rising protectionist efforts to retain insurance and reinsurance premiums locally. Regulators should assure that in particular in times of economic distress, insurers have access to the highly-rated risk capacity and expertise that well-diversified reinsurer provides. Indeed, some recent catastrophes, including large natural catastrophes or man-made 2 claims in South Africa, Cameroon and Lebanon, and in addition to the threat presented by COVID-19 potentially related claims remind us that some exposures can quickly exceed local capacity.”

• The pandemic will change the African insurance landscape & reduce top-line of insurers
Senior executives predict that COVID-19 will lead to an accelerated consolidation of Africa’s insurance industry, eliminating those companies with limited resources and fragile processes.
Such a shake-out would strengthen the continent’s insurance markets and benefit policyholders through higher security and a drive for more innovation. Executives expect improved risk awareness among consumers, leading to higher demand for insurance products.
However, executives are concerned about the impact of COVID-19 on the income of African households. They expect that policyholders will limit their spending and favour savings for fear of a reduction in income or job losses. This, in turn, will affect their insurance purchasing behaviour, ultimately leading to a decrease in premium income.
Andreas Bollmann, Partner at Faber Consulting, commented: “Despite the impact from COVID-19, Africa’s insurers and reinsurers remain confident of the fundamental growth potential of their market. They believe that the effects of the pandemic will be offset by an accelerated digital transformation, supportive government and regulatory policies, and increased risk awareness by consumers.”
For the remainder of 2020 and 2021, Africa’s insurance executives expect a continuation of the high level of uncertainty. Re-/insurers have to maintain adequate solvency, ensure operational resilience and remain responsive to customer needs.
In 2020, insurers introduced large-scale transformative investments to redefine their core value proposition, optimise operations, update technology and to build a workforce for the future.
In 2021, they have to continue on this path of strengthening their competitiveness and thus contributing to a more robust marketplace.

Interswitch & Finastra: Inside The Partnership for Digital Payments in Africa

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28/11/2020

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Interswitch, Africa’s leading technology-driven company focused on the digitization of payments in Africa, has announced its partnership with Finastra, one of the world’s largest fintechs, to deliver innovative, world-class technology-based solutions for digital payments, corporate banking, treasury and trade finance, to financial institutions in Africa.
Consistent with Interswitch’s market expansion strategy, the partnership will enable the company to deliver on its vision to transform Africa’s wholesale and transaction banking business by building world class products and solutions, thereby, delivering innovative and trusted technology to banks and the communities they serve.
With this strategic partnership, Interswitch becomes Finastra’s lead technology partner in the Nigerian market. This enables Finastra to bring the broadest set of financial software solutions to financial institutions in Nigeria and across Africa, in conjunction with Interswitch’s strong understanding of the local banking and payments landscape, as well as the ability to deploy solutions across these markets.
Mitchell Elegbe, Founder and Group Chief Executive Officer at Interswitch stated that the company is committed to continually explore opportunities, including partnerships, with leading brands such as Finastra, to deliver world-class technology, innovative products and digital solutions to African financial institutions.
He said: “Our partnership with Finastra is consistent with our strategic growth plan and we both share the vision of deepening access to financial services by providing world-class technology and innovative solutions. The partnership enables Finastra to seamlessly deploy its technology in this market. For Interswitch, we will be leveraging our proven success and expertise in delivering transaction banking solutions to support Finastra in localizing and implementing their technologyin this region.
The partnership positions Interswitch as the go-to business for financial solutions, including treasury and trade solutions, to banks and other financial institutions in Africa. Two of the Finastra solutions now available via Interswitch include Fusion Kondor and Fusion Trade Innovation.
Fusion Kondor, Finastra’s treasury solution provides a low-risk system for bank treasury operations to grow and expand their businesses at the pace and complexity level required.
In addition, it enables increased automation, improved efficiencies and reduced costs through the removal of fragmented data sets and tighter integration.Finastra’s Fusion Trade Innovation provides market-leading functionality for digital trade and supply chain finance.
It provides banks with the electronic submission and processing of information required by customs, uses risk-based inspections and promotes efficiency inproduct-specific inspections.
Hamid Nirouzad, Head of Partner Ecosystem MEA & CIS at Finastra said, “Interswitch has a proven track-record of delivering solutions to commercial banks, as well as a strong understanding of the local banking landscape across Nigeria and sub-Saharan Africa.
Finastra is committed to providing its solutions to financial institutions across the world, and partnerships such as this result in successful projects, with rapid delivery at reasonable cost.”
Finastra delivers technology to financial institutions of all sizes across the globe, including 90 of the world’s top 100 banks.

Nutritionist Seeks Dietary Diversification to Tackle Malnutrition in Nigeria

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28/11/2020

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Dr. Beatrice Chinyem Oganah-Ikujenyo of the Department of Home Economics, Adeniran Ogunsanya College of Education, Oto/Ijanikin, Lagos says the key to addressing the problem of malnutrition in the long run is dietary diversification. She said the more we consume variety of foods, the better the chances of meeting daily nutrient needs for optimum health and well-being.
Speaking on ‘The Quest for a Protein-Centred National Food and Nutrition Policy and curbing Malnutrition in Nigeria’ during the Protein Challenge Webinar 6 Series, the nutritionist said food fortification eliminates micro-nutrient deficiencies by lowering the risk of multiple deficiencies that may result from seasonal scarcity of food or poor quality diets.
Other benefits include:
• Provides extra nutrition and maintain the body stores of the micro-nutrient more efficiently than with supplements
• It is a cost effective intervention (it is cheaper)
• It does not require change in food habits
• It does not change the characteristics of the food: the original taste, aroma, texture and appearance of the food is unchanged
Despite the benefits however, the don said food fortification also faces certain challenges as the poorest segment of the population may not have the purchasing power to buy fortified staples from the open market while fortified foods is not generally beneficial to infants and children as they consume small amount of food.
She added that the measure “is not a long term solution to micro-nutrient deficiency, dietary diversification is the key to solving micronutrient malnutrition.”
Other challenges include corruption along the production and distribution food chain, ignorance and distrust in government policies by the citizens and the issue of monitoring and quality control by both NAFDAC and Standards Organisation of Nigeria (SON).
On the way forward, Oganah-Ikujenyo listed enactment of protein-centred nutrition policy, and food and nutrition security in Nigeria.
According to her, the protein-centred policy should include:
• Exclusive Breast-feeding for the first 6 months of life
• Complimentary feeding policy with emphasis on a mixed diet (Cereal/Legume based) and continuation of breasting till child is 2 years old
• One Egg a day Nutrition for children (egg is complete nutrition and cheaper)
• School meal programme targeted at ensuring daily consumption of egg/milk by school age children
• Promote cultivation of legumes at household, commercial & Industrial levels
• Incentives to animal and legume farmers by all arms of government in terms of tax, electricity, water rates waivers and ease of access to land and loans
• Nutrition Education and Advocacy that promote consumption of legumes and animal protein plus healthy eating habits from the cradle.
• Penalties for poor agricultural and food safety practices by stakeholders
On the issue of nutrition security for the nation, the nutritionist said it could be achieved by engaging school leavers/graduates in farming activities in food production, preservation & processing to reduce post harvest losses – provide the technology at affordable rates and meal planning, food knowledge & healthy eating habits in terms of consumption.
She added that the ‘use of under-exploited foods, reduction of food wastage in the kitchen and on the plate, creation of food banks – farmers and households can keep extra food for financial returns and food hygiene and safety campaigns regarding to street foods – this should be regulated after training of food vendors also offers a positive roadmap on food security in Nigeria.

Insurance Group Seeks Market Growth via Media Support

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28/11/2020

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The Chairman of the Governing Council, Insurance Industry Consultative Council (IICC), Sir Muftau Ojegunle, has identified journalists as critical stakeholders in insurance industry even as he called for more support from the media to increase the industry’s penetration.
Sir Muftau who is the President/Chairman, Governing Council, Chartered Insurance Institute of Nigeria (CIIN) made the disclosure at the 2020 Media Retreat with the theme “ Changing the Face of the Media, The New Expectations,” organised by the body for insurance journalists at Ijebu Ode, yesterday.
According to him, “We want to work together to move the industry forward. If we are able to increase penetration rate, its for our mutual interest. If the industry grows, of course, we shall benefit from it, so l want to say that don’t just see yourself as onlookers, see yourself as a critical stakeholder in the industry. When we come around here let’s tell ourselves the truth., always do the needful in order to move the industry forward.”
He commended the collaborative relationship existing between the insurance journalists and the insurance industry, and promised to do everything to improve on it.
Also speaking, the President, Nigerian Council of Registered Insurance Brokers, (NCRIB), Dr (Mrs) Bola Onigbogi, who was represented at the occasion by the Vice President, Mr. Tunde Oguntade, informed the journalists of the expectations of the industry.
While calling on the insurance journalists to see themselves as critical stakeholders of the industry, he also urged them to be objective in their reportage, noting that accurate and critical analyses of industry’s activities will help the industry to grow.
Oguntade who described NAIPCO members as “eyes of the industry” solicited the continued cooperation and supports of the journalists association in ensuring that the industry is positively projected and reported as their contribution to deepen insurance penetration in Nigeria.
While calling on the journalists to see the industry as one united family, Mr Oguntade urged NAIPCO members to aspire to unite the industry through their reports and analysis by giving all the different segments of the industry the same level of coverage. “Don’t report Nigerian Insurers Association’s (NIA) success as NIA success, don’t report NCRIB’s success as NCRIB success. It’s an industry success. Aspire to unite the industry.”
In his contribution, the Head, Human Resources/Administration and Corporate Communication, Mr. Davis Iyasere, who represented the Director General, Nigerian Insurers Association (NIA), Mrs Tunde Ilori, called on journalists to ensure objectivity, fairness and balance in their reporting for the growth of the sector.
On the on-going recapitalisation exercise, he said there’s no disagreement between the regulator, the National Insurance Commission (NAICOM) and the operators as speculated in some quarters, stating that what is going on is the normal consultation and collaboration to arrive at a level playing ground for the good of all stakeholders, industry and the nation at large.
The IICC Media Retreat is borne out of the need to reinforce the existing relationship between the insurance industry and the media considering the new direction of the insurance industry and provide an effective, efficient and all-inclusive platform for the promotion of insurance education and awareness aimed at settling the insurance profession and the industry on the right path in the long term interest of the stakeholders.

NAICOM Licenses 7 New Firms to Expand Insurance Market

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28/11/2020

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The National Insurance Commission (NAICOM)has issued seven new licenses to expand and grow the insurance industry
in Nigeria.
The new companies include:
HEIRS Insurance General
Stanbic IBTC Life Insurance Limited
HEIRS Life Insurance
Enterprise Life Assurance Company Limited
Salam Takaful
Cornerstone Takaful Insurance Company Limited
FBS Reinsurance Limited

Insurance Group Seeks Media Support for Market Growth

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Business Journal

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28/11/2020

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The Chairman of the Governing Council, Insurance Industry Consultative Council (IICC), Sir Muftau Ojegunle, has identified journalists as critical stakeholders in insurance industry even as he called for more support from the media to increase the industry’s penetration.
Sir Muftau who is the President/Chairman, Governing Council, Chartered Insurance Institute of Nigeria (CIIN) made the disclosure at the 2020 Media Retreat with the theme “ Changing the Face of the Media, The New Expectations,” organised by the body for insurance journalists at Ijebu Ode, yesterday.
According to him, “We want to work together to move the industry forward. If we are able to increase penetration rate, its for our mutual interest. If the industry grows, of course, we shall benefit from it, so l want to say that don’t just see yourself as onlookers, see yourself as a critical stakeholder in the industry. When we come around here let’s tell ourselves the truth., always do the needful in order to move the industry forward.”
He commended the collaborative relationship existing between the insurance journalists and the insurance industry, and promised to do everything to improve on it.
Also speaking, the President, Nigerian Council of Registered Insurance Brokers, (NCRIB), Dr (Mrs) Bola Onigbogi, who was represented at the occasion by the Vice President, Mr. Tunde Oguntade, informed the journalists of the expectations of the industry.
While calling on the insurance journalists to see themselves as critical stakeholders of the industry, he also urged them to be objective in their reportage, noting that accurate and critical analyses of industry’s activities will help the industry to grow.
Oguntade who described NAIPCO members as “eyes of the industry” solicited the continued cooperation and supports of the journalists association in ensuring that the industry is positively projected and reported as their contribution to deepen insurance penetration in Nigeria.
While calling on the journalists to see the industry as one united family, Mr Oguntade urged NAIPCO members to aspire to unite the industry through their reports and analysis by giving all the different segments of the industry the same level of coverage. “Don’t report Nigerian Insurers Association’s (NIA) success as NIA success, don’t report NCRIB’s success as NCRIB success. It’s an industry success. Aspire to unite the industry.”
In his contribution, the Head, Human Resources/Administration and Corporate Communication, Mr. Davis Iyasere, who represented the Director General, Nigerian Insurers Association (NIA), Mrs Tunde Ilori, called on journalists to ensure objectivity, fairness and balance in their reporting for the growth of the sector.
On the on-going recapitalisation exercise, he said there’s no disagreement between the regulator, the National Insurance Commission (NAICOM) and the operators as speculated in some quarters, stating that what is going on is the normal consultation and collaboration to arrive at a level playing ground for the good of all stakeholders, industry and the nation at large.
The IICC Media Retreat is borne out of the need to reinforce the existing relationship between the insurance industry and the media considering the new direction of the insurance industry and provide an effective, efficient and all-inclusive platform for the promotion of insurance education and awareness aimed at settling the insurance profession and the industry on the right path in the long term interest of the stakeholders.

Stanbic IBTC Unveils Education Trust to Support Parents

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28/11/2020

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In its quest to foster educational development, Stanbic IBTC Trustees Limited, a subsidiary of Stanbic IBTC Holdings Plc has created the Stanbic IBTC“Education Trust” (SET) scheme.SET is a convenient and flexible investment plan with long term benefits, designed to support parents and guardians as they strive to provide quality education for their children and wards.
With the outbreak of COVID-19, the importance of preparing for unprecedented situations cannot be overemphasised. This investment plan helps parents and guardiansprepare for rainy daysto ensure their children and wards haveaccess to excellent learning.
Parents and guardians are also able to nominate SET as a beneficiary for their insurance policies as this can help cushion the effect of a parent or guardian’s death or permanent disability on the education of the child or ward.
Speaking on the rationale behind SET, Charles Omoera, Chief Executive, Stanbic IBTC Trustees Limited,stated that the organisation understands the importance of quality education on individuals and the country’s economic growth.
“We understand the major role quality education plays in laying a good foundation towards building future leaders. That is why at Stanbic IBTC, we encourage parents and guardians to properly plan and invest in educational trusts like SET to avoid occurrences that might bring their children or wards’ education to a halt,” he said.
According to him, an education trust helps smoothen the rough financial edges when adverse circumstances occur and makes the attainment of family goals and aspirations seamless to achieve. One unique benefit of SET is that payments are effected directly to the institution of learning thereby ensuring there are no diversion of funds.
He added thatparents owe their children and wards quality education to help them unlockthe unique opportunities that quality education offers.
“With smart investments, attaining a great future is more achievable for our child. Whether it is primary, secondary, tertiary or post-graduate education, parents and guardians now have an opportunity to make contributions towards funding the education of their children and wards,” he added.

Ecobank: How Banks, Telcos, FinTechs, Regulators Can Grow Economy

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28/11/2020

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The Managing Director, Ecobank Nigeria, Patrick Akinwuntan has advocated a closer collaboration between banks, Telcos, Fintechs and industry regulators to enhance savings and lending in the financial landscape.
This development according to him will generate activities in the economy and expand wealth creation. Akinwuntan who was speaking at the ‘Fintech in Nigeria: State of Play’ event based on the research and moderation of the Economist Intelligence Unit, stated that the Fintech industry is currently more active in payments as against wealth creation, which is the ultimate goal for financial inclusion.
He noted that the Central Bank of Nigeria (CBN) has been proactive in providing a regulatory environment for the collaboration of players with emphasis on customer protection which has improved customers’ trust in using digital channels.
Akinwuntan who commended the role fintechs play in facilitating payment, said “there is need to deepen their presence in lending and savings. This is why I maintained that collaboration between Fintech and banks is valuable. We are not at the stage of competition yet; we are at a situation where although we have our profitability interests, we will actually gain much more by collaborating.”
He added that “in the area of savings and lending, be it to the agriculture sector, the creative sector or the young graduates setting out to be entrepreneurs directly, the ability to save even in little bits creates a profile that would be able to attract lending that you can translate into economic value.
Specifically, the Ecobank Managing Director stated that the Fintech industry rose to the situation especially in the payment space and increasingly in lending and savings during the Covid 19 pandemic lockdown in the country.
He noted that “between March and April, the number of transactions in the payment space for Fintech grew in multiples of close to 800%. We saw significant participation of the Fintech industry in actually reaching more of the underserved in the market by reducing cost of access and making these services available all the time ether by using traditional banks or in collaboration with government agencies.”
Akinwuntan explained that Ecobank had uninterrupted banking services for its customers through its digital platforms and agency banking during the lockdown, “we had invested significantly in our digital platforms; given the nature of Ecobank as a pan African institution, the only way we could reach every household was to leverage the digital platform. We saw a marked growth in the number of digital based transactions as our customers continued in their way of life depending on these platforms. And most importantly is the use of our social media to drive advocacy with the stay safe campaign where we educated the masses on safety guidelines. We were ready for the situation giving the nature of our franchise. And with our agency banking push, people do not need to go beyond their neighborhood to do transaction.”
Also speaking, Director, Payment System Management, CBN, Musa Jimoh said the apex bank’s regulation is driven by innovation.
“We have come up with regulations that will enable all the participants to behave symbiotically. Our payment system directive will be driven by the innovation in the banks. We don’t know what will happen in the future in terms of technological development, therefore we follow innovations and prepare a ground for all the participants to work symbiotically. A new innovation is studied before we provide the needed intervention in terms policy derivative that will help everybody to participate”.
He observed that Covid 19 lockdown provided opportunity for banks to sell digital products, test their back up and business continuity processes and explore the technological services available and push for their financial services, noting that CBN is backing up these areas with relevant regulations to ensure all the participants with the payment and financial service space can actually conduct their service responsibly.
On priorities in the regulatory space especially those championing Fintech, Jimoh said the apex bank currently operates both sandbox and the open bank regulation. “the sandbox provides a regulated environment for startups who don’t have the financial strength to take an authorization from CBN to go through the entire process of licensing to test their innovation. We are working hard to show case an environment where startups can come to the regulatory sandbox to test their innovation and services without having the license yet,” adding that “Open banking regulation is a principle that will allow third party to leverage on the existing bank accounts with the banks to get information and provide services. More like democratizing financial services where a person chooses the service provider that will provide services and the kind of services provided. As a Fintech, you will be able to connect to banks to provide value added services.”
Fintech in Nigeria: State of Play: is an Economist Intelligence Unit Research which examines key trends in the fintech sector in Nigeria and assesses both industry drivers and impediments to further growth. This report combines extensive desk research and insights from in-depth interviews with industry experts and executives at regulatory bodies and Fintech firms.
Key findings of the report showed that Nigerian Fintechs are moving from payments into lending, micro-investment, wealth management, peer-to-peer transfers and insurance.
Secondly, Nigeria’s regulatory environment balances innovation and consumer protection but must continually evolve to respond to market dynamics and lastly, Nigerian Fintech needs to address shortcomings in the broader ecosystem to develop and flourish.

African Trade Exchange Highlights Growing Demand for U.S. Agricultural Products in Region

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20/11/2020

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The U.S. Soybean Export Council (USSEC), the American Soybean Association’s World Initiative for Soy in Human Health (ASA/WISHH) and the U.S. Grains Council (USGC) co-hosted the African Trade Exchange to strengthen trade with the African continent and discuss partnership opportunities to build demand for U.S. Soy.
In total, nearly 300 U.S. Soy customers and soy industry representatives from more than 30 countriesregistered, and the conference’s virtual platform will allow participants to access sessions on-demand following the event.
The two-day virtual conference took place November 9-10 and showcased globally renowned and highly regarded speakers on the international grain trade, the future of the African feed industry and long-term commercial trade development.
“Africa continues to be a region that holds tremendous potential. It is a great example of where we see a future for U.S. Soy, and our goal is to expand engagement with customers and remain a consistent supplier to this region,” said Jim Sutter, USSEC CEO. “This virtual conference is more evidence of our long-term commitment to the African region in partnership with WISHH and USGC and our optimism on building long-term relationships.”
Sub-Saharan Africa is currently the sixth largest destination of U.S. feed and grain exports, with Nigeria being the largest destination within the region. According to the USDA, soybean and soybean meal feed use in the region are projected to increase by 59% and 35%, respectively, until 2029. These numbers represent an opportunity for boosted demand of U.S. Soy.
“The need for a high-quality protein product like U.S. soybean meal will be vital as this region’s population continues to grow,” said Monte Peterson, Chairman of USSEC, board member of the American Soybean Association and soybean farmer in Valley City, N.D. “Our farmers are prepared to meet this need and show how U.S. Soy delivers proven, consistent quality, reliability and value to earn its role as a trusted partner around the globe.”
Earlier this year, a new comprehensive study reinforced U.S. Soy’s reputation as a global leader in nutrient density and economic value. A meta-analysis of eighteen different studies with 1,944 samples quantified the relationship between country of origin of the bean and the chemical composition and nutritive value of the soybean meal. The analysis provesthat U.S. soybean meal not only has an advantage relative to higher sucrose levels, an excellent amino acid profile, higher digestibility, increased metabolizable energy and lower fiber content (when compared to other origins) but it also has a price advantage. All of which can be beneficial to the sub-Saharan Africa region.
“Identifying new and growing markets in sub-Saharan Africa is part of the long-term strategy to build a strong pipeline of demand for U.S. Soy. The population of this region exceeds 1 billion people, with predictions to double by 2050, making it one of the most substantial frontier markets in the entire world,” said Kevin Roepke, USSEC’s Regional Director for South Asia and sub-Saharan Africa.“Holding virtual meetings like the African Trade Exchange will help us grow and sustain these markets where there is significant future potential due to factors such as large populations, improving economic conditions and low protein consumption.”
Attendees had the opportunity to learn more about the processes of securing credit, hedging risk, formulating rations and many other facets of the international soy and feed grain supply chain. Other topics included: the state of the West African market, a U.S. Soy industry spotlight, aquafeed production, animal feed production and industrial feed compounding.
“Providing technical, economic and logistical assistance is at the heart of the U.S. Grains Council’s long-term strategy in Africa, where the United Nations estimates demand for meat, milk and eggs will quadruple by 2050s,” saidKurt Shultz, Senior Director of Global Strategies for USGC.“Events like the African Trade Exchange are also an important part of our plan to solidify and build relationships in the region.”
The conference also provided an exclusive networking opportunity for USSEC and USGC members to engage importers through the U.S. Grain and Soy Spotlight. The spotlight allowed attendees to participate in a one-hour roundtable, encouraging relationship-building and educational opportunities to learn more about these organizations committed to sub-Saharan Africa.
“Delivering to Africa’s growing protein demand was a priority for U.S. soybean growers when they founded WISHH in 2000. WISHH has 20 years of proven experience working with African entrepreneurs who join us in recognising the importance of protein for Africa’s food security, as well as the economic opportunities it provides for businesses,” said Liz Hare, Executive Director of WISHH. “This conference was testament to U.S. soybean farmer commitment to supplying high-quality protein to the African continent.”
Sessions were held over two days and noteworthy speakers included:
• Clay Hamilton, Associate Administrator and General Sales Manager for the Foreign Agricultural Service
• John Coumantaros, Chairman of Flour Mills of Nigeria
• Emily French, Managing Director at ConsiliAgra
• Andrew Moore, soybean farmer in northwest Georgia and American Soybean Association board member
• Mac Marshall, Vice President, Market Intelligence for the United Soybean Board and U.S. Soybean Export Council

Event Highlights
Clay Hamilton, Associate Administrator and General Sales Manager for the Foreign Agricultural Service, delivered a welcome address to kick off the conference, in which he spoke about the U.S. agriculture’s dedication to the African region.

“We have re-dedicated ourselves to the African continent. This is a tremendous region. It continues to grow and there is so much opportunity here. For us, there are three areas we are focused on: trade policy, technical support, and market development. There is a lot going on with Africa, and this venue is a great opportunity to learn about that and how we can make trading productive.”

In a Q&A with Kevin Roepke, USSEC’s Regional Director for South Asia and sub-Saharan Africa, John Coumantaros, Chairman of Flour Mills of Nigeria, spoke about the development and change he has seen over the past six decades in the region.

“We are celebrating our 60th anniversary not only in Nigeria as a country but Flour Mills is also 60 years old. When we began in 1960 the country was only 35 million people and today it is over 200 million and growing at around5 million people per year. So there lies great opportunity and great challenge here. There has been a large movement of people from the rural sector to the urban sector. In Nigeria it has gone from 62% rural to 48% rural. There is great movement to the urban sector which means there is great necessity for food security. Demographics and the median age have also changed. Currently, 60% of the population the median age is 18,so we have a huge young population which means the need for jobs and investment is also strong.”

Dr. Ayoola Oduntan, Managing Director of Amo Farms in Nigeria, spoke about the demand for protein in the region, during a panel on the state of the West African Market.
“There is a definite demand for protein. Now, it’s very clear that animal protein can’t do it alone. First of all, we use a lot of soybeans in the animal feed space. Soy has become the protein source of choice in animal feed. In order to meet the rising demand for animal protein, we have to consume a lot of soybeans. In addition, there is an effort to increase human consumption of soybeans to augment what is consumed through the animal proteins. We have realized that the need for us to continue to grow this space has led to a significantly higher demand for maize and soybeans.”

Matthew Clark, of FeedGuys and founding member of Genesis Feed Technologies, led a breakout session on maximizing the value of soy in animal feed protection where he discussed the Nutrient Value Calculator (NVC).

“The NVC allows you to look at the economic impact of using different types of soybean meal. Data from Dr. Gonzalo Mateos and his team in Spain sheds more light on the comparative nutrient value of soybean meals from different countries of origin. The NVC processes this data to turn the nutrition information into financial data to make the right purchasing choice. With NVC, you can buy the best soybean meal for your business and reduce your feed costs.”

Verve Rewards 1,250 Customers in ‘Good Life’ Promo

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Business Journal

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20/11/2020

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L-R; Morolake Dairo; Product Marketing Manager, Verve Digital Tokens & Verve Life, Ajagbe Oluwaranti Isaac and Gideon Nnaji during the Verve Good Life Dummy Card presentation in Lagos State

Verve International has rewarded 1,250 customers so far, after its sixth weekly draws in the on-going Verve ‘Good Life’ promo for Verve cardholders across the country.
The lucky 1,250 cardholders’ winnings amount to a total of N11.5 million out of the over N27 million in cash and airtime allotted for over 2,500 cardholders nationwide in the ongoing Verve ‘Good Life’ promo.
The Verve Good Life Promo which was initially slated to run from September 1, 2020 till November 29, 2020 has now been extended by two weeks, till December 13, 2020, to give more Verve cardholders the opportunity to participate and win cash prizes and airtime.
For the September monthly raffle draws, Verve rewarded 50 lucky cardholders with N50,000 cash prize each. Similarly, 300 Verve cardholders also emerged winners of the N10,000 cash prize in the weekly raffle draws, while another set of 300 cardholders emerged winners of airtime worth N5,000.
Among the 50 lucky cardholders that won N50, 000 cash prize in the first monthly raffle draws were Anita Iwunze, an account holder with Zenith Bank and Raheem Olatayo Ibrahim, an account holder with Wema bank from Lagos state. Iboro Henry John, an account holder with Skye Bank from Akwa-Ibom State and Idris Yakubu Galadima, an account holder with First bank from Nassarawa State also emerged winners.
Having rewarded 1,250 customers out of the over 2,500 targeted customers, there is a pool of an equal number of customers to be rewarded. Banking customers without Verve cards are advised to visit their respective banks to request for a Verve card. This in turn, will avail them the opportunity to be among the over 1,250 more to emerge winners in the ongoing promo.
Speaking during the draws, Cherry Eromosele, the Group Chief Marketing and Communications Officer, Interswitch Group, remarked that rewarding and making Verve’s esteemed cardholders happy is underpinned by the company’s core values.
She said:“We pride ourselves in empowering our loyal cardholders to enable them achieve their dreams. We understand these are indeed challenging times across the globe. For this reason, the Verve Good Life Promo is targeted at enhancing the living standards of our loyal cardholders and we will continue to champion this cause.
“In addition to the invaluable experience we provide our numerous cardholders, we will continue to provide innovative, tailor-fit products and services to our loyal cardholders”, she added.
She further pointed out that Verve is changing the narrative of how to reward loyalty through the Verve Good Life Promo. She opined that Verve has been able to deepen brand love and consumer loyalty by putting its cardholder’s satisfaction at the nexus of its operations as well as providing seamless, secure, and fast payment solutions.
The Verve ‘Good Life’ Promo was launched on September 1, 2020 and will run till December 13, 2020. The promo seeks to enable Verve’s loyal cardholders to live the good life, whatever the ‘good life’ means to them.
Cardholders are expected to use their Verve cards frequently to stand a chance to win. Specifically, to qualify for the weekly categories, new and existing cardholders are expected to transact with their Verve cards for as many as three times in a week.
For the monthly wins, cardholders will have to use their cards 12 times to do any of these: transfer funds, pay bills, recharge airtime, withdraw cash, etc.
For the Grand prize of N1 million, cardholders will have to use their cards 36 times within the next five weeks, across PoS terminals, ATMs, Web, and agent banking centres.

‘Diabetes is not a Death Sentence’- Ecobank Day 2020 Medical Experts, Patients

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Business Journal

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19/11/2020

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Medical experts and patients living with Diabetes have submitted that the dreaded disease is not after all a death sentence but with proper management, those affected could survive and live long.
They expressed this view at a webinar to commemorate this year Ecobank Day. Ecobank Day is a special day set aside every year by the Ecobank Group, for management and staff of the bank to embark on Corporate Social Responsibility (CSR) activities that impact its immediate environment and people. This year’s theme is ‘Take Action Against Diabetes’.
Dr. Mazeedat Erinosho, Public Health Practitioner and Director, Saving One Million Lives Programme, Ministry of Health, Lagos in her presentation titled “Diabetes mellitus and living healthy” opined that Diabetes can be properly managed through healthy living, regular exercise, appropriate medication, eating healthy and keeping blood sugar levels as close to normal, among others.
She defined Diabetes as a metabolic disease that causes high blood sugar, noting that untreated high blood sugar from diabetes can damage nerves, eyes, kidneys and other organs. She listed common symptoms to include frequent urination, increased thirst and increased appetite, adding that if left untreated, diabetes can cause cardiovascular disease, stroke, chronic kidney disease, foot ulcers, damage to the nerves, damage to the eyes and cognitive impairment and death.
Speaking in the same light, Dr. Mosunmoluwa Obafemi Adio, Consultant Endocrinologist, Presidential Emergency Plan for AIDS Relief (PEPFAR) at University College Hospital, Ibadan, listed different types of Diabetes and some common symptoms such as frequent urination, excessive thirst, weight loss, extreme hunger, vision changes, numbness in the hands or feet, feeling very tired most of the time and dry skin.
Dr. Adio who is currently a Consultant Endocrinologist with Evercare Medical hospital made a case for regular medical check-up particularly sugar level, eating fruits and vegetables and managing weight loss.
In his testimonial, Alhaji Abdulwahab Dauda, Chairman, Diabetes Association of Nigeria, Lagos Chapter and the South West Region, who has managed Diabetes for 30 years, commended Ecobank for organising the awareness programme, stressing that the life threatening disease is not a death sentence, as it could be managed.
The 74 year-old Diabetes patient linked his survival to discipline and strict adherence to medical prescriptions.
“For those of us that are diabetic, the first fact you should know is that it is not a death sentence. Accept the fact and tackle it. Follow doctor’s medications religiously; do not skip your recommended drugs and meals; take your medical kits along with you at all times. I am a living witness that you can survive the disease.”
Also sharing his experience, United States based, Edwin Velarde canvassed for regular exercise, strict adherence to medication and regular check-up.

Building a Legacy – A Lot on My Table

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19/11/2020

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By Nonso Okpala

“You have less than 100 years to make a mark.”
Three years ago, I started searching for a table based on two basic considerations.
First, I wanted a functional table to get work done-one that wasn’t too high or too low but would lend support to my posture and allow me work for long hours easily. The second consideration was more complicated but can be summarized in a single word — Legacy.
Legacy means what you inherited from the people before you — your dad, mum, relatives or loved ones. The flip side, seldom contemplated, is that legacy also means what you bequeath to people after you — your children, wife, siblings etc.
When I started searching for a table, I had three people work individually on the task. I was certain that they would deliver but unfortunately, none of the options made the cut. So my search continued until last Friday.
Over three years later, and I finally found the table for me-a table with such immense beauty.
For the purpose of context, let me create a clearer picture for you. Post my midlife crisis (check my medium article re “Midlife Crisis”), I came up with 21 core rules to mitigate the effect of midlife crisis. In this article, I will dwell on one of those rules, which is the “legacy script”.
Legacy is a consolation prize for our inability to achieve immortality — if you can’t live forever, try to be remembered forever or at least for some time after you leave (die).
Following this core rule, I started searching for ways to build my legacy. Before I turned 40, it was all about making money. I never really thought about what I would do with all that cash when I finally made it but I just knew that I wanted to be insanely successful. Some people equate this to having insane amounts of cash but I think otherwise. Very few men have been immortalized by purely amassing wealth. We see instances where after men like this die, their wealth is scavenged and they quickly become forgotten once that well runs dry.
But a legacy built on more than just cash can endure. It is easy for exceptionally talented folks to build a legacy on their bodies of work but men of capital and wealth don’t easily achieve that status, hence my quagmire. It meant that even if I succeeded in making enormous wealth, there was no guarantee that I’d also have a legacy that endures.
The legacy script is the definition or outline of what you want to leave behind or how you want to be remembered when you are gone. It is more or less what becomes your brand, post existence. I dare say that life is an art form and like artists, we all have the opportunity to paint the picture of our lives, our legacy, and the first step to achieving that is articulating your legacy script and ensuring the following:
1. It is relevant to and serves humanity — Functional
2. It is acceptable to most — Acceptance
3. And can be built into the consciousness of humanity — Consciousness
Let’s evaluate one of the greats with a remarkable legacy, Nelson Mandela. He served humanity by advancing the course of freedom and equality (Functional). The concept was acceptable to most, though progressively in the course of the struggle (Acceptance). And the entire story of his life has been summarized in a powerful way makes his brand endure (Consciousness). In the moment of victory, he was gracious enough (or wise enough) to show compassion and opt for reconciliation, not retaliation.
Another person with a powerful legacy is our very own Fela. He had the benefit of making remarkable music — of course as a result of talent and extraordinary hard work, which grabs the consciousness of humanity. But he applied his gift and resultant attention to advancing the course of humanity and freedom for his people.
The last component of this legacy script, “consciousness” requires a bit more explanation. You may achieve a great deal, but if it doesn’t grab the consciousness of humanity, it blunts the impact of your legacy. The significance of your legacy is reduced, because the lack of consciousness prevents the legacy from contributing to moulding and influencing society’s ideas/ideals and truly inspiring the next generation.
For musicians and truly talented individuals, the task of legacy consciousness is easy. Burna Boy, who in my view became the biggest African Artist ever, has grabbed the consciousness of humanity and the question now is what he does with it. On the other hand, mere mortals like us, regardless how much you are worth, you have to first check the “functional” and “acceptance” boxes and then push for consciousness. This is direct opposite for a talented individual, e.g. a musician.
The art of building consciousness can be mostly achieved through the following:
1. By telling compelling stories. Authentic stories based on “functionality” and “acceptance”
2. Creating symbolisms through visual arts and acceptable mediums
3. Music and all forms of entertainment that can hold and project your message
The list above is not exhaustive, but the ideas border on symbolism and the Arts, which brings me back to my story of the “Table”. I aspire to build and support companies that will collectively form the basis of Nigeria’s economic emergence. I am positive that with VFD Group Plc and its associated subsidiaries, we will achieve this. It is a compelling story thus far and it will be way more compelling as we go along but that in itself doesn’t grab the consciousness of humanity.
“Being a mere billionaire is boring and holds no consciousness; you have to combine it with something more humane, something more impactful on humanity and inspires generations.”
What this quote is basically saying is, you have to lace your actions with symbolism to truly make it a legacy. The table is one of such attempts. The table is functional, acceptable as a means of getting the job done but the artistic dimension is what loads it with the right type of message to, alongside other things, grab the consciousness of humanity with the aim of inspiring.
It is not just an ordinary table; it is an assemblage of works by various artists that was fused to form a functional table. The core of it, the surface, was crafted in 1987 by Owie S. E. and it depicts the culture and history of Nigeria and its various ethnic groups-a stunning beauty but now a symbol of a possible Nigerian economic emergence.
The consciousness of legacy is deeply rooted in arts thus any society that doesn’t reverence artists, living or dead, loses the opportunity of projecting their individual and collective legacy. This a story for another day as I have been told that my last article was “way too long”.
The concept of a “legacy script” is based on the fact that if we all, individually and collectively, strive for a higher purpose that serves humanity, the world, our continent, countries and immediate communities will be better off.
What is your legacy script?

Nonso Okpala is the GMD/CEO of VFD Group (Viadaz FD Limited), a financial services holdings company in Nigeria with interests in foreign exchange, debt investment, international remittance, real estate and payment businesses.

‘AIICO Will Meet 1st Phase Recapitalisation Deadline’

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19/11/2020

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AIICO Insurance Plc has restated its commitment in ensuring a deliberate and sustained collaborative partnership with members of the National Association of Insurance and Pension Correspondents (NAIPCO) to actualise the company’s objectives, ensure the industry’s growth and contribute to the nation’s economy.
The Managing Director and Chief Executive Officer of the firm, Mr Babatunde Fajemirokun, made the disclosure while giving opening remarks to flag-off a one-day training workshop organised by NAIPCO for its members in Lagos on Tuesday.
The AIICO MD/CEO who was represented at the occasion by the firm’s Head, Strategic Marketing and Corporate Communication Department, Mr. Segun Olalandu, commended the efforts of NAIPCO in creating awareness and educating the public on the benefits and advantages of insurance as a risk mitigating mechanism and a tool for poverty alleviation and wealth creation.
While stressing the prime place of the Media in nation building, he described NAIPCO as a “very important association and strategic” for the nation’s insurance industry.
Assuring NAIPCO of his company’s continued supports, Mr. Fajemirokun implored the journalists to redouble their efforts and remain committed to their professional ethics and conduct in order to take the industry to the next level.
On recapitalisation, he said the company is doing everything possible to meet the National Insurance Commission’s deadline of December 31, 2020 set for all insurance and reinsurance companies in the country to meet the first phase of the two-phase segmented recapitalisation plan.
Commenting on the firm’s 2020 third quarter operating results, Mr. Fajemirokun said it achieved a 27 per cent year-on-year growth in gross premiums written from N37.0 billion in Q3 2019 to N47.2 billion in Q3 2020, noting that the global and local macroeconomic headwinds have continued to test the resilience of the firm’s business, and operating models as well as its business continuity plans and the strength of its relationships with customers and partners.
According to him, “the increased contribution to profits from our general insurance and our asset management businesses highlight the strengths as a group. Our general business continues to enjoy the confidence and support of our customers, despite the effects of the pandemic. Our asset management business, AIICO Capital, continues to grow its client base while investing judiciously on behalf of its clients. Overall, profit before taxes reduced seven per cent year-on-year, from N5.0 billion in Q3 2019 to N4.7 billion in Q3 2020.
“Profit-after-taxes increased 17 per cent year-on-year to N5.2 billion for the interim period ended September 30, 2020 from N4.5 billion in the corresponding period in 2019,” he said. The total assets, he said increased 55 per cent year-to-date to N245.8 billion from N159.5 billion in December 2019 driven by an increase in financial assets, including cash and cash equivalents,” he added.
He noted that the financial assets increased because of the decline in investment yields and judicious investment of funds received for policies sold, maintaining that total liabilities increased 63 per cent to N212.6 billion from N130.6 billion in December 2019 driven mainly by increases in insurance contract liabilities (from the decline in yields and reserving for new businesses) and fixed income liabilities (3rd party funds under management) in our asset management business.
Total equity, he said grew 15 per cent year-to-date to N33.2 billion from N28.9 billion in December 2019.
“Our 3rd quarter results demonstrate that our business remains steady, despite the changing client preferences and risk exposures that have accompanied the COVID-19 pandemic. We have recorded strong top-line growth year-on-year as well as improved contribution from subsidiaries in our Group, especially our asset management business.
“In our core insurance business, we will continue to offer innovative products that help our customers create and protect their wealth while leveraging the latest technology to meet our clients where they are. In addition, strong asset-liability management remains a pillar of our operating model. As a diversified financial services group, we will continue to ensure that businesses across our Group offer attractive products that enable us create value for all stakeholders,” he said.

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