The Nigerian Agricultural Insurance Corporation (NAIC), has urged the federal government to boost its operations by enhancing its capital base and making Agric insurance compulsory for Nigerian farmers. The Corporation also wants the government to make its agric Insurance subsidy effective through regular subsidy payments.
Deputy General Manager, Business Development at the NAIC, Bashiru Martins, who stated this at the media retreat organised by the Insurance Industry Consultative Council for Insurance correspondents, in Abeokuta, Ogun State, said the demands have become necessary because of the importance of agriculture in national economic development of Nigeria and the fact that agric business by its nature is a very risky business.
He said insurance itself is a risk management tool while risk by its nature has to do with uncertainties arguing therefore that insurance is needed most by farmers to preserve their produce and remain in business.
According to him, the government can do better to encourage Nigerians to take insurance when they face risk than giving them intervention funds as it is currently doing.
He warned that disaster does not discriminate; therefore Nigerians of all classes should embrace insurance especially agric insurance irrespective of size of their farms.
Martins said, on its part, the corporation has been carrying out sensitisation programmes among farmers in different parts of the country , in zones, sates and farm settlements and has been spending a lot of resources on that as well as on development of suitable products for farmers.
On the number of policies so far issued by the corporation, Martins, said there is no data on number of policies issued. He however said the corporation gives insurance cover on almost all crops and livestock items starting from initial two crop and two livestock items.
Martins also said NAIC is working assiduously towards rolling out other salient products such as yield Insurance, weather index insurance among others.
He said the corporation is currently working on some strategic business initiatives such as new insurance software to facilitate its operational processes (improve turnaround time),fund committed to research and development of new products as well as distribution models.
He also said NAIC is working on a process of conceptualising and designing a template for communication strategy and is currently discussing with reinsurers of international repute for a robust and adequate programmes for portfolio risks, especially for the new emerging agric challenges and opportunities.
SA Insurance Posts N268m Profit in Q2 2016
Standard Alliance Insurance Plc, one of the general underwriting companies, has announced a profit before tax of N268million from a gross premium of N1.296billion written in its operations in the second quarter ended June 30, 2016.
According to the unaudited results recently released to the Nigerian Stock Exchange, by the company, the figure represented a 55 percent decline over the N606million realised from a gross premium of N1.228billion written during the corresponding period in 2015.
The chief executive officer of the company, Mr. Bode Akinboye, said the development was as a result of the impact of the new foreign exchange regime, adding that the new regime accounted for the significant change of the profit before tax, not only from the first quarter performance but also in comparison with the same period of last year.
He explained that the unrealised foreign exchange loss of N443million arose from the need to revalue the company’s dollar obligation in line with the material devaluation of the naira against the US dollar, noting that without this, the company would have been looking at a profit before tax of well over N700million.”
He also said that the unaudited results of the company’s account showed that the group’s gross revenues amounted to N2.671billion as of June 30,2016, indicating a rise by 6 percent compared to N2.52billion during the corresponding period in 2015.
Total assets of the company stood at N12.317billion, indicating an increase of 5 percent over the N11.787billion position as at December 2015 while shareholders’ fund rose by 3 percent to N4.93billion as at June 30, 2016 solely on the back of internal capital generation.
According to Akinboye, these results showed some remarkable recovery from the prior period accounts where the company posted a positive underwriting profit but reported loss as a result of exceptional charges for diminution of investments.”
He attributed the performance to the fundamentals of the company which he said remained strong in its area of core business, noting that because of the positive feat being achieved under the new management and board, the company has continued to win more clients.
The SA insurance boss explained further that the company, like others in the financial services sector, has been operating under a debilitating investment climate, noting however that the results showed its resilience and ability to ride the prevailing economic storm in the country.
He disclosed that the company was currently undergoing expansion in its retail, e-business and digital transformation activities, assuring its public that the company was quite hopeful of posting a much enviable result during the remaining period of the year as the economy begins to show visible signs of positive recovery.