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Business News

FBNInsurance targets tier1 ranking

FBN Insurance Limited has announced plans to be a Tier 1 Company.

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Sequel to the new capitalisation requirement for all insurance companies released by the National Insurance Commission (NAICOM) last week, FBN Insurance Group has announced plans to be a Tier 1 Company.

FBNInsurance Limited Managing Director, Val Ojumah, noted that FBNInsurance Limited and FBN General Insurance Limited have the financial wherewithal to operate in the Tier 1 category.

He further noted that the newly introduced Risk Based Supervision RBS will send a clear message to investors and remove the negative impression about most insurance companies been fringe players.

In his words:

“We have so many fringe players and as a result, we have suffered as an industry from all sorts of malpractices. If you look at the financials of many companies, you will find out that many of them are indeed, struggling and because they are struggling, they tend to try to survive by doing whatever and this has brought collective shame to the industry.”

The new capital requirements announced by NAICOM

Tier one is the highest capital base for each class. Tier three is the minimum capital base required for each class.

Life insurance firms now have three captalisation tiers. Tier one companies will be required to have N6 billion as capital. Tier two life insurance firms will be required to have N3 billion, while tier 3 firms will maintain the current requirements of N2 billion.

Non-life insurance firms will now have three tiers. Tier one non-life firms are mandated to have a capital base of N9 billion. Firms in tier two segment are expected to have a capital base of N4.5 billion, while tier 3 firms will maintain the current capital base of N3 billion.

Insurance companies operating in the composite segment, that is all classes of insurance now have three tiers. Companies operating in the tier one will be required to have a capital base of N15 billion. Tier two firms will need to have a capital base of N7.5 billion, while those in tier 3 will maintain the current capital base of N5 billion.

Deadline to meet the new requirements is January 2019.

SSKOHN

The way forward for players in the Insurance sector

The new requirement could lead to several mergers and acquisitions in the insurance sector. Raising capital through equity may be difficult for many of the firms, as many of them currently trade at N0.20 price floor.  Retail investors who have suffered a huge loss on their investments, will also be reluctant to partake in the exercise.

However, in anticipation of the new requirements, several insurance firms had initiated moves to raise capital. Mutual Benefits insurance, earlier this month had obtained regulatory and shareholder approval to raise N5 billion through a rights issue. Wapic insurance in May last year, obtained the approval of shareholders to raise up to N10 billion in fresh capital.

Consolidated Hallmark Insurance in October last year, raised N500 million through a rights issue.

About the company

In February 2010, NAICOM granted an operating licence to First Bank of Nigeria Plc. (FirstBank) to establish a life assurance business in partnership with Sanlam Group of South Africa.

Stanbic 728 x 90

Consequently, First Bank incorporated a subsidiary, FBN Life Assurance Limited. First Bank has a holding of 65% in the equity of FBN Life Assurance Limited. Consequent upon the restructuring of 2012, the investment is transferred to FBN Holdings Plc. and the name of the company was changed to FBN Insurance Limited in 2014. The segment recorded N10 billion in revenue in its half-year financial reports for the period ended 31st June 2018.

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Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via [email protected]

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Business

Hyundai and Kia to set up an assembly plants in Ghana by 2022

The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

Why this matters

More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

SSKOHN

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Business

Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

What the Minister said

“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

The new passport process

The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

What you should know 

  • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
  • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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