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Chuks Udo Okonta
Barely one year into the evergreen reinsurance market, FBS Reinsurance Limited has stamped its feet solidly on the ground recording great strides as testified by its Managing Director, Fola Daniel.
Daniel, who spoke with Inspenonline at the sideline of the recently held African Insurance Conference in Nairobi, Kenya, said FBS Reinsurance Limited, was established as an indigenous company to add value to the insurance market.
He noted that the firm commenced operations at a time there was a need for capacity in the Nigerian insurance market, adding that the frontline reinsurance firm has entered the market to contribute capacity and to make a difference.
He said the firm has since commencement, continued to show commitments to settlement of claims within 12 working hours, stressing that has forestalled the question of sending reminder on claims, which he said is not tolerated in the firm.
Daniel maintained that presently, the firm is the only reinsurance company around that has Munich Reinsurance backing and is participating in five treaties.
“We have enjoyed tremendous goodwill. We are poised not to abuse the goodwill.
“We are lucky to have the best technical crew, which helped us to hit the ground running. This gave much confidence to the market,” he submitted.
He posited that the firm has as at the end of May this year, writing over $15 million.
FBS Reinsurance Limited recorded N7.9bn gross written premium in its first year of operation.
The Chairman, Board of Directors, Bala Zakariyau, said this during the firm’s first annual general meeting in Lagos.
“Your company just completed first year of operation and generated gross written premium of N7.9 billion ($19 million) and earned profit before tax of N505.47 million ($1.2 million). I wish to congratulate the board, management, staff, cedants, retrocessionaires, our brokers and all the stakeholders of FBS Re for this good first year performance despite the harsh economic realities caused by the pandemic,” he said.
Zakariyau said global reinsurance industry gross income was estimated at $450bn in 2021 with percentage growth expectations of six per cent CAGR over the next four years to reach $600 billion by 2025.
Nigerian insurance industry, he said, continued to present enormous potential for investors, especially in the reinsurance sub sector.
He noted that the industry was operating in the biggest economy in Africa with obvious demographic advantage, middle-class expansion and insurance penetration now of only 0.3 per cent.
Daniel, said the company in its first year of operation closed with total assets in excess of N15.8 billion, from just about N10 billion at commencement.
He recalled that FBS Re was licensed in November, 25, 2020 by the National Insurance Commission and commenced operations in January 1, 2021.
According to him, the company was in the process of achieving 100 per cent of its target capital in line with on-going NAICOM’s new capital requirement.
“The company is service- centric with bouquets that aligns clearly with customer needs in the oil and gas space, agriculture, life/non-life and retakaful,” he said.
Daniel said the company’s expertise and network were expected to move the company to a pan-African reinsurance platform in the next three to five years.