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Insurance industry records claims of N174.8 bn, pays N148.2 bn in Q2

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Insurance industry records claims of N174.8 bn, pays N148.2 bn in Q2

… As total assets hits N2.3 trn, income N369.28 bn in Q2***

The Insurance Industry has recorded 0.2 per cent growth in gross claims compared to the corresponding year totalling N174.8 billion in the second quarter of 2022.

A performance bulletin released by the National Insurance Commission (NAICOM) in Abuja on Tuesday, said the figure represented 47.3 per cent of all premiums generated during the period.

NAICOM said that the net claims paid stood at about N148.2 billion which represented 84.8 per cent of all gross claims reported during the period.

The Commission said the performance reflected the professional underwriting capacity of the industry as driven by its intensified regulatory activities.

NAICOM said the life insurance business recorded 88.90 per cent claims settlement as against the reported claims while the non-life segment stood at 76.8 per cent.

The Commission said that motor insurance retained its lead, posting a claims settlement ratio of 92 per cent.

It said that the oil and gas recorded 85. 7 per cent of claims settlement ratio, an increase of 43 points compared to its position of 42.8 per cent recorded in the corresponding period of 2021.

The Commission said miscellaneous insurance also posted 61.9 per cent, higher than 44 per cent paid claims ratio, compared to the corresponding period of 2021.

NAICOM said that General Accident paid claims of 75 per cent; fire 76.2 per cent while Aviation & Marine posted 61.9 per cent.

The Commission said the sector recorded an increased growth rate of 12 per cent.

In the same vein, the insurance sector recorded an increased growth rate of 11.9 per cent with a total asset of about N2.3 trillion in the second quarter of 2022.

This is according to the National Insurance Commission (NAICOM).

A performance document released by NAICOM in Abuja on Tuesday said the industry’s financial position revealed a total of N1.2 trillion in Assets of Non-Life businesses while the Life business stood at about N1.1trillion.

The Commission said the market recorded about N369.2 billion during the period, indicating a 20.1 per cent growth rate compared to the same period in the previous year.

NAICOM said the figure was an impressive 65.0 per cent quarter-on-quarter.

The Commission said with the figures, it was obvious that the market could be adjudged as sound and stable while the stance of the market deepening remained optimistic.

”The continued steady growth from the first quarter of the year correlates with the current performance of the period under review.

”The Gross Premium Income in the second quarter of 2022 stood at N369.28 billion.

”The market data reveals that the industry grew 20.1 per cent higher than the national real Gross Domestic Product (GDP) of 3.5 per cent during the same period.

”This indicates the industry’s impressive performance given the recent trajectory.

”This performance analysis of the Insurance Industry is an insight into the market behaviour in the second quarter of 2022,” NAICOM said.

The Commission said the statistics of the insurance market performance for the second quarter of 2022 revealed some quality improvements in the market indicators including growth, claims settlement and profitability.

The newsmen recall that the industry’s total assets as at the end of 2021 financial year stood at N2.139 trillion.

 

Economy

PETROL: ‘Be Wary Of Substandard Product Dumping’, Dangote Refinery Tells Nigerians

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PETROL: 'Be Wary Of Substandard Product Dumping', Dangote Refinery Tells Nigerians

…Says citizens’ health and vehicle longevity are seriously at risk!

The Dangote Refinery on Sunday warned that Nigerians may soon begin to buy substandard petrol, without much concern for either the citizen’s health or the longevity of their vehicles, except care is taken to prevent low products dumping by those open to connive with certain international traders.

The Group’s image maker and spokesman, Anthony Chiejina gave the warning, saying the group was constrained to raise the alarm, despite its desire to refrain from engaging in any media fights.

“We have lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by IPMAN, PETROAN, and other associations. 

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports”, Chiejina stated, stressing that the issue on ground was not about being able to land relatively cheaper petrol on ground, but the quality of such products.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low-quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.

“Post deregulation, NNPC set the pace by selling PNS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks.

“In good faith, and the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.

“At the same time, an international trading company has recently hired a depot facility next to the Dangote Refinery, intending to use it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips to protect their domestic industries.

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum products in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty”, the Group Chief Branding and Communications Officer further said.

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Economy

YULETIDE Decorations: LASG To Divert Traffic At Ajose Adeogun

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YULETIDE Decorations,: LASG To Divert Traffic At Ajose Adeogun

The Lagos State Government will divert Traffic, away from a section of Ajose Adeogun Street in Victoria Island, for the mounting of end-of-the-year decoration, for a duration of three weekends starting from Saturday 19th October 2024.

The aforementioned exercise, according to Commissioner for Transportation, Oluwaseun Osiyemi,  will be carried out in three phases with each phase focusing on different sections of the street. 

To this end, the following alternative routes have been mapped out for motorists during the cause of the mounting; 

 During the First Phase which will cover Jubril Martins to Chicken Republic – (Saturday, 19th and Sunday, 20th October 2024)

Traffic inward Eko-Hotel Roundabout will be diverted to the other half (existing section) of Ajose Adeogun Street by VCP Hotel to form contra-flow traffic and exit at Eko-Hotel Roundabout to continue journeys.

Alternatively, Traffic inward to Eko-Hotel Roundabout from VCP Hotel will be diverted through Jubril Martins into Muri Okunola to link Patience Coker and access Ajose Adeogun Street to connect destinations.

During the Second Phase which will cover Molade Okoya Thomas to Mounis Bashorun section – (Saturday, 26th and Sunday, 27th October 2024). 

Traffic inward Ajose Adeogun Street from Eko-Hotel Roundabout will be diverted to a right turn into Molade Okoya Thomas to link Younis Bashorun to access Ajose Adeogun Street to continue journeys. 

During the Third phase of the project spanning 10 meters inward Ajose Adeogun (Saturday, 2nd November, 2024).

Motorists from Adetokunbo Ademola Street will maintain a lane movement for about 10 metres into Ajose Adeogun Street to connect their destinations, while Motorists inward Eko-Hotel Roundabout on Ajose Adeogun Street will maintain a lane movement for about 10 metres into Eko-Hotel Roundabout.

The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi while imploring Motorists to note the ease of movement plan assured that the State’s Traffic Management Authority will be on ground to manage vehicular activities along the corridor to minimise inconveniences.

The Commissioner therefore advised Motorists to be patient, as the Partial closure is part of the traffic management plans for the commencement of End of Year Decoration of Ajose Adeogun Street, Victoria Island, Lagos, by Zenith Bank PLC.

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Economy

NLC Kicks, Says Petrol Hike Will Further Deepen Poverty, Job Loss

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NLC kicks, Says Petrol Hike Will Further Deepen Poverty, Jobs Lost

The Nigeria Labour Congress (NLC) has kicked against the current petrol price hike, stressing that the latest increase in the pump price of petrol will further deepen poverty as production capacities dip.

The Congress added that the increase would lead to more job loss with multidimensional negative effects, and therefore, demanded its immediate reversal.

NLC’s position is contained in a statement signed by its President, Mr Joe Ajaero on Wednesday in Abuja, titled, “What next after increase in pump price?”.

The labour leader said the previous increases had not produced any good results, rather, people only got poorer.

He said the Congress was dismayed by the latest increase in the pump price of petrol without commensurate capacity of Nigerians or mitigatory measures.

“Even following the logic of market forces, we find it an aberration that a private company (NNPCL) is the one fixing prices and projecting itself as a hegemonic monopoly.

“We challenge the government to go to the drawing board and present us with a blueprint for inclusive economic growth and national development instead of this spasmodic ad hocism and palliative policy.

“It needs no stating the fact that the latest wave of increase has grossly altered the calculations of Nigerians once again at a time they were reluctantly coming to terms with their new realities,” he said.

It would be recalled that the Nigerian National Petroleum Company Limited (NNPCL) had raised the pump price of petrol by 14.8 per cent to N1,030 per litre from N897 across its retail outlets in the FCT.

Earlier in September, the NNPCL had increased the price of the product from N615 to N897.

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