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ENDSARS

Post-#EndSARS: A time of reckoning for the Insurance companies in Nigeria

As the dust from the #EndSARS protests settles down, it is a time of reckoning for insurance companies in Nigeria.

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Post-#EndSARS: A time of reckoning for the Insurance companies in Nigeria

A time of unforeseen circumstances causing huge damages to insured objects is a time to gauge the preparedness and evaluate the financial capacities of the insurers in managing the risk events vis-à-vis indemnifying for losses suffered by their clients. As the dust from the #EndSARS protests settles down, it is a time of reckoning for insurance companies in Nigeria.

The hijacked #EndSARS protests have come and gone, but the smoke raised by the trailing losses/damages are still with the insured and are quite humongous to sink the boat of the entire insurance industry put together, if not properly managed.

READ: AIICO Insurance reports an 86% increase in profit after tax for Q4 2019 

From the emerging reports, Lagos state alone requires a whopping sum of N1 trillion to resuscitate the vandalized infrastructures. The concern expressed by many stakeholders is the total costs accruable if all the vandalized infrastructures were fully insured – as the resultant claims could swallow up the insurance industry.

It is not yet clear how much of these assets were appropriately insured but considering that our insurance culture is quite low amongst both the private and public sectors, there is a strong likelihood that some of the vandalized assets might not have been appropriately insured or insured at all.

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READ: Ratings firm explains why bank non-performing loans could be worse than expected

Nairametrics recently profiled and reviewed the capital base of some frontline insurance companies in Nigeria and are persuaded to believe that they have the capacity to withstand the vagaries of the emerging losses and still stand strong, considering their excellent past claims settlement history to date.


Leadway Assurance

It is a privately-owned insurance company, whose financial capacity grew over time and can now underwrite risks of very high costs, as regards heavy industries like Oil and gas and big manufacturing concerns.

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  • It has a capital base in excess of N45 billion, according to its 2019 financial statements and a gross premium was about N89billion.
  • In 2019, it settled claims amounted to about N38.5billion.

READ: Cornerstone Insurance to issue bonus shares in view of recapitalisation


Axa Mansard Insurance

It was formerly known as Guaranty Trust Assurance Plc, following the acquisition of its majority shareholding by Guaranty Trust Bank Plc.

  • Results for the period ended 31st December 2019 reveal that the company has shareholders’ funds of N30billion and a gross premium income of about N41.6billion.
  • About N17.5billion was settled as claims within the period.

READ: Guinea Insurance Plc gives optimistic Q3 earnings forecast in spite of COVID-19


AIICO Insurance Plc

This is one of the largest Life Insurance companies in Nigeria and a primary underwriter for general insurance businesses, as well as a key player in the Oil and Gas industry.

  • As of 2019 year-end, the capital base of the company was N27.9billion, with a gross premium income of N50billion.
  • N25.4billion was settled as claims.

Explore some Advanced Financial Calculators on Nairametrics

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Custodian and Allied Insurance Plc

  • As of December 31, 2019, the company was capitalized to about N19billion, with a gross premium income of N25.2billion.
  • It settled the sum of N2.3billion as claims from clients within the period.

READ: NSE closes in the red as MPC leaves rates unchanged

Stanbic IBTC

Linkage Assurance Plc

The company is a product of a merger of two major insurance companies – Central Insurance Company Limited and Linkage Assurance Plc, to form a new and bigger Linkage Assurance Plc.

  • Results for the period ended 31st December 2019 indicates that the company has shareholders’ funds of about N19billion and a gross premium income of about N6.3billion.
  • About N1.7billion was settled as claims within the period.

Bottom line

There is no doubt that the amount of damages is quite huge but the industry has the capacity to absorb the financial shock that could arise from the legitimate resultant claims connected with the hijacked #EndSARS crisis, as the frontline insurance companies are reasonably capitalized with excellent claims settlement histories.

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ENDSARS

#EndSARS: Protest hijack was catalysed by fake news – Lai Mohammed

The hijack of #EndSARS protests was catalysed by fake news and disinformation, Minister of Information, Lai Mohammed has said.

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Minister of Information, Lai Mohammed, has claimed that the hijack of the #EndSARS protests was catalysed by fake news and disinformation, which spread like wildfire on social media.
The Minister disclosed this during a stakeholders meeting with members of the broadcasting organizations of Nigeria (BON) on Friday in Abuja.

He said, “The violence that resulted from the hijack of the #EndSARS protest was catalysed by fake news and disinformation, which spread like wildfire on social media. And this did not come to us as a surprise. As far back as 2017, we had been raising the alarm on the risks posed by fake news and disinformation.
“That year, we devoted the National Council on Information to the issue of fake news, hate speech, and disinformation. The following year, in 2018, we launched the national campaign against fake news and disinformation, partnering with a number of print and electronic media organizations.
 
“Ladies and gentlemen, social media was used to guide arsonists and looters to certain properties, both public and private, during the #EndSARS violence. Then, pictures of persons, including some celebrities and even non-Nigerians, who were supposedly killed at the Lekki Toll Gate by soldiers, were circulated widely, only for those persons to refute such claims.
 
“This brings me to the issue of social media regulation. You must have heard about the hoopla this issue has generated in the media. Well, I want to confirm that we will definitely act to ensure a responsible use of social media. You may call that regulation.
He added that the FG had no plans to stifle press freedom in Nigeria and had no intention of shutting down the internet.
 
“This government has no plan to stifle free speech, neither do we have any intention of shutting down the internet. Social media has come to stay, and those who use it responsibly have nothing to fear.
“But we cannot give the same assurance for those who weaponize social media. By the way, the issue of regulating social media content is generating debate around the world, so Nigeria is not an exception,” he said.
What you should know 
Nairametrics reported earlier this month that Lai Mohammed said the Federal Government had no plans of shutting down social media, but must regulate it to prevent the spread of hate speech.

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ENDSARS

#EndSARS Sanctions: Nigeria has reached out to the UK Government – Foreign Minister

Onyeama has stated that the FG has reached out to the UK Government over the parliamentary debate on the #EndSARS protests.

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The Minister of Foreign Affairs, Mr Geoffrey Onyeama, said that the Nigerian Government has reached out to the UK Government over the parliamentary debate on the #EndSARS protests.

The Minister disclosed this to Newsmen at the Federal Executive Council (FEC) meeting on Thursday, which was recorded by Channels TV.

READ: Gov. Makinde presents N266 billion budget to Oyo State House of Assembly

He added that the UK Parliament did not speak for the UK government, and that the UK had heard the Nigerian government’s side regarding the incident at Lekki.

READ: FG reacts to CNN report, describes Lekki shooting as massacre without bodies

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“On the issue of the UK parliament, yes, we have reached out to the UK government on this question. The meeting that took place was of Parliamentarians, they don’t speak for the UK government and the UK government which acts for the United Kingdom has also heard the side of the (Nigerian) government regarding everything that happened.

READ: #EndSARS: Bankers’ Committee, Private sector lead Lagos rebuilding team to raise trust fund

“So we are in touch with them and engaging with them. But, of course, as in any democracy, the Members of Parliament are able to also air their views, but what is important is that a balanced picture is made available to them all before they take any decision,” Onyeama said.

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READ: DPR approves new Liquefied Petroleum Gas guidelines for investors, operators

What you should know 

Nairametrics reported earlier this week that the British Parliament had announced it would consider a petition by some groups and individuals, asking it to apply sanctions against the Nigerian government and officials for alleged human rights violations during the #EndSARS protest and Lekki shooting incident.

Also, the presidency earlier disclosed that the Vice President, Yemi Osinbajo, had a meeting with the UK Special Envoy for Humanitarian Affairs, Nick Dyer, accompanied by the UK High Commissioner to Nigeria.

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ENDSARS

#EndSARS: States affected by violence should get 1% VAT – Senate

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The Nigerian Senate has urged the Federal Government to give states that were affected by lootings and destruction by hoodlums after the anti-police brutality protests,  1% of all Value Added Tax (VAT).

This motion was moved by Senators Abiodun Olujimi and Gershom Bassey on Tuesday and disclosed in a report by Channels TV.

What you should know 

After the lootings and destruction by hoodlums who hijacked the #EndSARS protests, Nairametrics reported that the Speaker of the House of Representatives, Femi Gbajabiamila, said Lagos State will need about N1 trillion for the reconstruction and repair of the properties and infrastructure that was vandalized in the process.

The Senators moving the motion declared that destruction caused in Lagos by hoodlums was valued at a range of over N1 trillion by the State Governor, Babajide Sanwo-Olu.

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(READ MORE: #EndSARS: Insurance firms can seek refund after indemnifying victims – MD, NICON Insurance)

Senator Gershom Bassey also revealed that hoodlums attacked federal properties in Calabar like the WAEC office and looted food warehouses in the state.

“Cross River State being a predominantly Civil Service State may not overcome the effects of the invasion since the destroyed state infrastructure were built from lean state resources over the years,” Bassey disclosed.

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Senator Sani Musa said the lootings which started in Lagos spread to other states, leading to the destruction of properties and urged for the FG’s assistance.

“#EndSARS came as a peaceful protest, but turned violent. It started in Lagos and later spread to other states which led to the destruction of homes, businesses, and government offices. It is very unfortunate. The government needs to rebuild what was destroyed and pay compensation as well. It is their responsibility,” Musa said.

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