AIICO Insurance Plc said it has resumed writing of Annuity business after the short embargo placed on the business against insurance operators by the National Pension Commission (PenCom).
The company said it has resumed PenCom regulated Annuity business in collaboration with its appointed First Pension Custodian (PFC), having obtained the nod of PenCom to recommence the sale of the product nationwide.
Head, Retail Operations of AIICO, Mr. Sola Ajayi, who briefed journalists on the positive development said: “We are open for business nationwide and have already started booking new annuity sales from all pension fund administrators (PFAs).”
According to Ajayi, AIICO Insurance is one of the pioneers of annuity in Nigeria, having started Annuity sales since 2013 with over 7,500 annuitants who are being paid their monthly annuities.
“The AIICO annuity product is designed to pay customers for the entire duration of their life no matter how long they live. We are committed to the eradication of old age poverty in Nigeria, one person at a time,” Ajayi stated.
He said AIICO Insurance asset backing annuity liabilities is in excess of N30billion which is a testament to AIICO’s commitment to ensure that all future commitment will be met as at when due.
On the development, Ajayi thanked the existing annuity customers of the company and assured them that the company would continue to be there for them .
He also welcomed all intending customers, saying AIICO Insurance will not disappoint them.
PenCom had on November 3, 2016, issued a circular, directing life insurance companies underwriting Life Annuity business under the Pension Reform Act (PRA) 2014 â€œto transfer all annuity assets under their custody to licensed Pension Fund Custodians (PFCs) as mandated by the pension law.â€
The Circular, stated that the custody of annuity funds, has to reside with PFCs and insurance companies underwriting annuity, should transfer the same to PFCs of their choice within three months ending January 31, 2017.
In addition, approval and release of funds for new annuity requests was put on hold pending when insurance companies would open operational accounts with PFCs to receive any new premium.
Before the Circular was issued, PenCom, had on October 26, 2016 communicated to the National Insurance Commission (NAICOM), of its resolve to bring annuity assets of insurance companies under the custody of PFCs and by extension under its purview.