NICON takeover: NAICOM hinges decision on stakeholders' interest

Sunday Ojeme

Following the suspension of the boards of NICON Insurance Plc and that of Nigeria Reinsurance Corporation, the National Insurance Commission said on Saturday that the decision was taken in the interest of stakeholders.
The Head of the Corporate Affairs unit of the regulatory agency, Mr. Mike Umeh, said in a statement that the action was intended to protect all stakeholders especially the policyholders, who continued to petition the NAICOM for non-settlement of genuine claims, which also affected some government parastatals.
“To ensure equity, all such petitions were referred to NICON Insurance for response. Regrettably, most of these enquiries were either not responded to or received late with evasive responses,” he said.
He said the commission also discovered that the respective chief executive officers of life and general businesses in the oganisations were mere paper executives that could only approve payments of up to N50,000 while payments above this amount were the exclusive preserve of the group managing director, thereby rendering the CEOs ineffective and incapable of taking decisions on prompt claims payment which is the principal objective of taking an insurance policy.
He said o Investments, the NAICOM also confirmed information regarding movements of investment in a manner not consistent with the Insurance Act.
According to him, “By a letter conveying the instructions of the Group Managing Director, all monies realised by NICON Insurance and Nigeria Reinsurance Corporation in excess of that immediately required for salaries and other management expenses, were domiciled with a company registered as NICON Investment Company Limited. This company is solely owned by the Group Managing Director and cheques for such accounts domiciled with him.”
He said in respect of Nigeria Re, evidences of a cowed management abound with instructions dished out and compliance compelled, saying that this was certainly against the norms and dictum of good corporate governance and established practice in an insurance institution.
He said, “The board of directors is the highest decision making organ of any corporate organisation and should have the freedom to arrive at relevant decisions. It may be noted that the Federal Government still has substantial equity in the two organisations under reference. In the case of NICON Insurance Corporation, not less than 30 per cent and in the case of Nigeria-Re, not less than 70 per cent. It is therefore unacceptable to allow these institutions to be run unethically with very disturbing consequences on policyholders, investors, the insurance industry and the economy at large.”



Sunday Ojeme

International Energy Insurance Plc has unveiled a new auto insurance package, which it considers a deviation from the conventional cover currently on offer.
Speaking via a statement on the new scheme tagged “IEI AutoCare” the Managing Director of IEI, Mr. Jacob Erhabor, said “Consumer expectation is very dynamic and we have to be sensitive to it, because it is basically why we are in business. This is where we make a world of difference from the rest. This is just the beginning of what is shortly going to be a series in innovative and value-adding product development from the stables of this vibrant and caring insurance company.”
The statement said the package, apart from the promise to provide a brand new replacement car for the beneficiary, also offered a stop-gap provision for the customer, in which a chauffeur-driven car would be provided as soon as the company was notified of a claim in case of an accident.
It also covers riot, strike and civil commotion, at no extra cost to the insured, besides the fact that it is a policy-excess free cover. The idea is to up the value proposition of the cover for the policyholder.
The Group Head, Business Development, Mr. Akinwale Akinsola, said “For most businesses, even start ups, and in our personal lives, the car has become very essential, and it would do a lot of good if one’s life or business is not grounded just because the unexpected happened.”
IEI AutoCare cover in two categories including the Deluxe and the Executive. The Deluxe offers a package for personal accident treatment, irrespective of the cover for the repair of damages on the car involved, free vehicle recovery offer via a tracker or replacement in case of total loss, and tyre sealant among other benefits.
The Executive category has additional benefits with the provision of a chauffeur-driven car as a stop-gap in the event of a loss or accident, riot, strike and civil commotion cover while also enjoying excess-free payment for damages.
In the Deluxe package, designed for vehicles valued between N3m and N5m, the express benefits for the policyholder include free personal accident cover valued at N1m apart from the free vehicle tracker/recovery services attached. There is a free tyre sealant offer involved before the ultimate benefit of having the car replaced in case of a total loss during the incident.
Values attached to the Executive category, essentially designed for vehicles worth in excess of N5m include getting a free chauffer-driven car as replacement, payment of damages incurred in the process of the accident - without limit. The tyre sealant, vehicle tracker and personal accident cover of N1m on the insured offer, also applies as in the case for the Deluxe category.



Oceanic Health plans community insurance programme

Sunday Ojeme
The Group Managing Director of Oceanic Insurance Group, Prince Lafor Olateru-Olagbegi, has said that the Oceanic Health Management Plans has finalized plans to
introduce a robust Community Health Insurance programme aimed at promoting effective primary healthcare delivery services in Nigeria
He said in a statement on Saturday that the company would provide technical support and human capital development structures to drive primary health care delivery across the various states of the federation through the programme.
Olagbegi spoke on behalf of the Oceanic Group Chairman, Dr. (Mrs.) Cecelia Ibru, at a workshop in Ibadan which focused on ways Oceanic Health could partner with the Oyo State Council on Health at ensuring qualitative health services are available, accessible and affordable to the vulnerable and socially excluded in the state.
He said that the health insurance would play a frontline role in efforts geared towards improving the quality of life of residents of rural areas, orphans, retirees, the unemployed, and prison inmates, among others.
According to him, “Health insurance is a veritable way of providing social protection against poverty. Oceanic Health is committed to partnering with Oyo State and other states of the federation to ensure hitch-free implementation of the National Health Insurance Scheme at all levels of healthcare in Nigeria by building effective and enduring technical and human capacity structures.”
The features of the partnership include, upgrade of community primary health centres, training community health workers to manage them, emphasis on primary care and referrals, incorporation of private health facilities, introduction of local scheme administrators, and affiliation to secondary care providers.
Identifying poor infrastructure, inadequate personnel and low government expenditure as factors that had stunted healthcare development in Nigeria, he said there was need for global best practices in healthcare financing in Nigeria.
He said, “There is need to ensure more equity, technical quality, reliability and support preventive measures, and rational use of resources.”
Oceanic Health Management Limited, a subsidiary of Oceanic Bank International Plc, was incorporated on January 19, 2007 to carry on the business of primary, secondary, and tertiary health management services in Nigeria . The company is manned by topflight health and other professionals led by its chief executive officer, Dr. Nte Uran-York.

First Guarantee tasks states on pension reforms

Sunday Ojeme
The Managing Director of First Guarantee Pension Limited, Mr. Charles Nwachukwu, has advised state governors to embrace the new pension regime in order to allow for a smooth implementation.
In a statement on Friday, he said there was need for state governments to embrace the scheme by first enacting the necessary statutory requirements and also stipulating the guidelines for the smooth operation of the scheme in their various domains.
He commended the Ogun State Government for embracing the scheme, saying it had done very well in providing the enabling environment that would ensure a resounding success of the scheme in the state.
He said First Guarantee Pension was poised to comply with all the necessary conditions and guidelines as stipulated by the state government.
The Ogun State Commissioner for Finance, Mr Kehinde Sogunle, said that the enactment of the Ogun State Pension Law 2006, the engagement of a firm of consulting actuaries to valuate the past benefits of workers and the creation of pension bureaux attested to the state government’s commitment to the success of the scheme.
While recognising the freedom of workers in the state to patronise any PFA of their choice, he noted that it was the responsibility of the state government to guide its workers aright.
According to him, “The interest of our workers is paramount to the state government vis-à-vis the determination of the calibre of the managers of the pension assets”.
He pointed out that the selected PFAs underwent rigorous screening exercise including being made to make presentations before the State Technical Committee on Contributory Pension Scheme and interactions with a view to determining the best method(s) that assured hitch-free implementation of the scheme.
He made it clear that the ceremony marked the formal commencement of the scheme in the state.
He said any registration of workers made earlier by any PFA was unacceptable to the state government as uncoordinated registration had the potential of engendering loss of workers’ confidence in the scheme.
He said the state government had directed the National Pension Commission to disregard all purported registrations carried out by any PFA on behalf of Ogun State public service workers.


Aiico wins NSE president award

Sunday Ojeme
Aiico Insurance Plc last week emerged the winner of the 2007 edition of the Nigerian Stock Exchange President’s Merit Award for the insurance sector.
A statement on Friday said the company’s emergence as a winner for the third time confirmed the performance of its stocks on the floor of the NSE, thus signifying the good managerial skills of the management and the board.
The statement said Aiico would be going to the market soon to raise N10bn, through a combination of public offer and rights issue.
The Chairman of the company, Chief (Dr.) Dele Fajemirokun, had expressed confidence at the annual general meeting that that the company was on the right path in terms of strategic posturing and business focus. According to him, “Our projections indicate positive growth in all areas and we are committed to succeeding. Looking ahead, we see brighter opportunities for continued strong and profitable growth and as things now stand, we are well positioned to enhance sustainable growth and improve shareholders returns”.
He said Aiico would place strong emphasis on strategic execution of the aforementioned, in order to realise the expected gains efficiently and effectively.
The company’s five-year result shows profit before tax at N348.80bn in 2006 as against N86.95bn in year 2005, representing 301.6 per cent growth while the profit after tax rose by 491 per cent, from N81.81m in 2005 to N483.70m in 2006.
The investment income increased by 335.4 per cent, moving from N20.89m in March of the 2005 to N90.95m in the current financial year.
The company also took a leap from its earning per share of six kobo, recorded in 2005 to 13 kobo in the current financial year, indicating a growth of 117 per cent and its shareholders fund appreciated by 37 per cent from N4.27bn to N5.87bn.
The company’s first quarter result ending March 2007 has shown a modest performance with premium income moving up to N753m from N726m as against the first quarter results in the year 2006, Profit after tax closed at N82.29m compared to N31.71m in 2006.
Asset base, however, dropped by 19 per cent, from N10.73bn in 2005 to N8.70bn at the end of 2006 financial year.
This according to the company was as a result of transfer of about N2bn worth of assets to its pension subsidiary, Aiico Pension Managers Limited.