Nigeria insurance pool to explore bigger risks

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Nigeria Liability Insurance Pool has said it is planning to deplore its resources to build long-term sustenance value for its stakeholders and explore more emerging risks.

The Chairman of the company, Mr. Edwin Igbiti, disclosed this during the organisation’s annual general meeting in Lagos.

He said, “The areas of focus among others are the new emerging liability risks such as oil and energy liability risks. The management has been upbeat about the commencement of business in these areas and hopefully, it will take off before the year 2017 runs out.”

He also disclosed that the company would pay a dividend of N73.29k per share of N1 each for the 2016 financial period.

During the 2016 financial period, he said the pool’s gross premium income rose by 1.46 per cent to N819.6m, out of which motor insurance account contributed 53 per cent, while workmen compensation contributed N14.25 per cent.

The chairman, who was represented by a member of the board, Mr. Jide Orimolade, said that public liability contributed 25.28 per cent while professional indemnity was 3.83 per cent.

Others, he added, were directors’ and officers’ liability, which accounted for 2.3 per cent, while both employers’ liability and builders’ and owner liability contributed 0.29 per cent and 0.15 per cent, respectively, of the total gross premium.

He said the underwriting profit nosedived to N151.38m, making it 39.15 per cent lower than previous year, occasioned by high claims paid, of which about 35 per cent was attributed to a member’s adverse motor claims’ recoveries.

According to him, the specific impact is that motor class recorded an underwriting loss of N5.9m, but that the effect of the loss was cushioned by the surplus recorded from other classes of business.

In spite of the adverse report of motor class, he said that the pool was still able to achieve a profit of N130.86m in the year under review, which represented 48.54 per cent over 2015 figure.


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