The Retiree Life Annuity (RLA) has increased to N463 billion in Q2 2020. This represents a 15.34% marginal increase compared with the same period last year.
This is according to the quarterly RLA publication of the National Insurance Commission (NAICOM).
- The RLA portfolio has so far recorded 83,917 contracts purchased for a total premium of N376.6 billion as at end of 2020 Q2. This depicts 2.69% and 1.58% growth in count and volume, respectively in 2020 Q2 from end of 2020 Q1.
- The Industry fund portfolio grew by 15.34% from N401.5 billion to N463.1 at the end of 2020 Q2.
- The YoY growth for RLA business during the last three years averaged 25.45% in volume, while RLA fund portfolio growth has averaged 37.22%, notwithstanding the RLA payouts made (cumulative total payments of N167.2 billion as at end of 2020 Q2).
From the graph above it is clear that irrespective of the cumulative annuity payouts, fund balance (N463.1 billion) still exceeds the sum of cumulative premium amounts received (N376.6 billion). Indicating the growth in the RLA business and a positive future outlook for the business in Nigeria.
Further analysis of the periodical increments in the cumulative premium amounts received and RLA fund portfolio respectively, depicts the growth rate for premium receipts is receding, while the growth rate for the portfolio fund balance is volatile. This could be attributed to the volatility in interest rate.
What this means
The performance generally mirrors the contribution of RLA to the insurance sector. This strength is confirmed by the fact that the net premium balance is only 45.21% of fund balance, indicating the strength of RLA portfolio to the sector. Also, the difference in fund balance (N253.7 billion) relative to net premium balance is an indication that annuitant can be rest assured that, all things being equal, they are guaranteed payout when needed.
What you should know
The RLA is a financial product that features a predetermined periodic payout amount until the death of the annuitant. An annuitant typically pays into the annuity on a periodic basis when they are still working.
Annuitants may also buy the annuity product in one large, lump-sum purchase, usually at retirement. RLA is commonly used to provide guaranteed and/or supplemental retirement income that cannot be outlived.
Retiree Life Annuity can be purchased from a Life Insurance Company licensed by the NAICOM and authorized to sell RLA under the regulation on retiree life annuity.
The NAICOM was established in 1997 by the National Insurance Commission Act 1997 with responsibility for ensuring the effective administration, supervision, regulation, and control of insurance business in Nigeria and protection of insurance policyholders, beneficiaries, and third parties to insurance contracts.
Insurance companies paid N4 billion in claims after EndSARS protests – NIA
The NIA chief assured that some insurance operators were still working to settle genuine claims as most claims from insured businesses had been paid.
The Nigerian Insurers Association (NIA) says Insurance companies paid N4 billion in claims to over 2000 businesses affected by the aftermath of the EndSARS protest after hoodlums took to the streets.
This was disclosed by Mr Ganiyu Musa, Chairman, NIA, on Thursday in Lagos.
The NIA chief assured that some Insurances operators were still working to settle genuine claims as most claims from insured businesses had been paid.
“The number of insured businesses that were affected at the last count was about 2,000 insured loss and the industry has settled N4 billion claims out of N4.5 billion in respect of the #EndSARS protests.
Once they are documented and completed, we have the commitment of our members that the claims will be paid timely,” he said.
He added that the association would continue ensuring members pay genuine claims to clients.
What you should know
Recall Speaker of the House of Representatives, Femi Gbajabiamila disclosed that Lagos State will need about N1 trillion for the reconstruction and repair of the properties and infrastructure that was vandalized and destroyed by hoodlums.
Nigerian payments company, Paystack expands to South Africa
Paystack’s south African expansion began with a six-month pilot phase that started after Stripe’s acquisition.
Paystack, the Nigerian payments company which powers businesses with its payment API has announced that it has expanded its operations to South Africa.
Founded in 2015 by Shola Akinlade and Ezra Olubi, Paystack helps businesses in Africa get paid by anyone, anywhere in the world. The company was actively present in Nigeria and Ghana before expanding to South Africa.
In 2018, Paystack raised an $8 million series A round led by Stripe. The funding was used for its Ghana expansion. Since expanding to Ghana, Paystack has grown and claims to power 50% of all online payments in Nigeria with around 60,000 customers, including small businesses, larger corporates, fintech, educational institutions, and online betting companies.
The company was later acquired by Stripe for $200M in 2020 for its African expansion. According to Tech Crunch, Paystack south African expansion began with a six-month pilot phase that likely started a month after Stripe’s acquisition. During this phase, the company has worked with different businesses and has grown a local team to handle on-the-ground operations.
What they are saying
Shola Akinlade, Paystack CEO said, “South Africa is one of the continent’s most important markets, and our launch here is a significant milestone in our mission to accelerate commerce across Africa. We’re excited to continue building the financial infrastructure that empowers ambitious businesses in Africa, helps them scale and connects them to global markets.”
Khadijah Abu, head of product expansion, added that “for many businesses in South Africa, we know that accepting payments online can be cumbersome. Our pilot in South Africa was hyper-focused on removing barriers to entry, eliminating tedious paperwork, providing world-class API documentation to developers, and making it a lot simpler for businesses to accept payments online.”
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- 2021 Q1 Results: FTN Cocoa Processor Plc reports loss after tax of N162.21 million
- Tantalizers Plc reports a loss after tax of N97.75 million in FY 2020 in Q1 2021.
- Courteville Business Solutions Plc proposes final dividend of 3 kobo per share for FY 2020.
- 2020 FY Results: UPDC Real Estate Investment Trust records over 500% growth in Profit after tax.
- Sovereign Trust Insurance records a 43% surge in profit after tax to N392.1 million in Q1 2021.