Connect with us
Advertisement
Oando
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Binance
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
Access bank
Advertisement
app

Financial Services

Retiree Life Annuity fund portfolio increased to N463 billion in 2020 Q2

RLA increased to N463 billion in Q2 2020, representing a 15.34% marginal increase compared with the same period in 2019.

Published

on

NAICOM

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).

READ: Why NEM Insurance Plc is considering increasing its issued share capital

  • 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).

(READ MORE: Lagos 2021 Appropriation Bill scales through second reading)

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.

READ: CHI gets NAICOM’s nod on micro life assurance  

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.

READ: Konga CEO targets $10 million daily turnover by 2024

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.

READ: How to build a profitable Mutual Fund Portfolio

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.

Jaiz bank

(READ MORE: Verod Capital to acquire Law Union & Rock Insurance)

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.

Adeyemi holds a PhD in Accounting Sciences. He has worked in the Educational Sector and as an Independent Consultant.

1 Comment

1 Comment

    Leave a Reply

    Your email address will not be published.

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Business

    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.

    Published

    on

    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.

    READ: Marginal oilfield: Bid winners allowed to make payments in naira – Minister

    “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.

    Continue Reading

    Business News

    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.

    Published

    on

    Paystack acquired by Stripe for a reported $200 million in the biggest fintech acquisition in Nigeria's history

    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.”

    Continue Reading

      





    Nairametrics | Company Earnings

    Access our Live Feed portal for the latest company earnings as they drop.