As the insurance industry’s premiums climb, the Nigeria Liability Insurance Pool, or NLIP, has urged member companies to bolster the pool by ceding more businesses to it.
Adetola Adegbayi, NLIP’s Chairman, revealed this while presenting the pool’s financial results at its 12th annual general meeting in Lagos.
She said, “It is expected that the insurance industry’s gross premium will increase, hence the Pool expects more cessions of businesses from member companies as their business portfolio increases. Relationship building between the Pool and member companies is very crucial to achieving the aforementioned.
“The addition of more/new members will verily reposition and make the Pool more visible within the insurance industry. The Pool has gone through a phase of physical restructuring and will continue the modification of its business process by being fully automated.”
She said the Pool had an impressive financial performance in 2021 due to the collective efforts of the board, management, staff and members of the company.
The chairman revealed that its gross premium grew by 10.73 per cent from N1.13bn in 2020 to N1.25bn in 2021, while the claims paid to member companies increased by 5.06 per cent from N252m in 2020 to N264m in 2021.
Investment and income rose to N50.1m from N28.5m in 2020, representing a 75.8 per cent increase, while the net surplus for the year was N339m from N279m in 2020, a 21.3 per cent rise.
Significant improvements were recorded in the cession of businesses from member companies, she said.
Adegbayi said the classes of business that had significant increases during the financial year under review were: Employers’ Contingent Liability (77.7 per cent); Builders’ and Occupiers Liability (38.7 per cent); Motor Third Party Liability (23 per cent); Director and Officers’ Liability (six per cent); Public Liability (5.4 per cent), Professional Indemnity (4.6 per cent).
According to her, Workmen’s Compensation was the only class that had a 19% decline.
The board of directors suggested a surplus of 190 kobos per N1 share for the financial period, according to the Pool’s chairman.
She went on to say that over the years, the Pool had worked hard to assemble a management team with extensive experience and a workforce that was sufficiently committed to meet the Pool’s ultimate goals.
