• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Wednesday, March 29, 2023
  • Login
  • Register
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Insurance

Q4 Forecasts: Stock Brokers, Insurers In Close Harmony

Nwanne Ikemefune by Nwanne Ikemefune
February 4, 2021
in Insurance
0 0
0
NSE PICTURE
0
SHARES
50
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

The avalanche of forecasts sent by quoted insurance companies to the Nigerian Stock Exchange, depict an insurance market that has been enamoured to fly high.

The stream of forecasts for the fourth quarter of the year was a steady flow of statistics that the concluding lap of the year was cast in iron to deliver good results and rewards for investors.

These forecasts, a distance from the dampened general economy that has been christened, staggered inflation, has lit up and refreshed the insurance market.

Insurance operators seem to be moving in a separate way that is insulated from the harsh stretches in the economy.

Without exception, all forecasts from several listed companies tell the story of something good is about to happen and all together chorus it.

Stock brokers are not surprised at the turn of events and they seem to agree with the forecasts. They are not flamboyant with words though, they occupy same platform with insurers that agree that something good is about to happen.

A high calibre stock broker, Mr. Charles Fakrogha, noted that the Nigerian economy outlook does not support the forecast of insurance performance because it has been struggling and the economy has experienced technical recession, with gross domestic product (GDP) fallen for two consecutive quarters.

Fakrogha, however, said the forecasts of the insurance companies cannot be entirely off target, admitting that some of these results that have hit the market especially from quoted companies had been at variance with what the economy is expressing.

The former chief relationship officer, TFS Securities & Investment, said the results and forecasts indicated that the insurance companies “are very resilient,” adding that, “they have put in all that they know in their operations , same applies to the banks and other sectors.”

Another stock broker, the CEO, Trust & Investment Company Limited, Mr. David Imafidon Adonri, said Covid-19 pandemic and the lockdown has not disrupted the income of insurers because business continued on the virtual channel.

On the investment side, he said a lot of them invested in financial assets and the financial market like the insurance subsector, has been functioning inspite of the lockdown, because they simply shifted their operations to the virtual space.

“That is why most of the insurance companies continue to declare profits. We also see the banks making profits and declaring interim dividends,” he stated.

Fakrogha also said the bullish run has served as good lane for smooth glide for insurers to brace the profit tape when the fourth quarter curtain drops.

Besides, he said the expectations of the insurance operators is raised by the regulators: National Insurance Commission, SEC and NSE, that placed firm requirements that would keep the operators in business.

“Most insurance companies are doing everything they can to make sure that they meet those requirements and still continue to remain in business,” he stated.

He also attest that the services of insurance companies has been raised, stating how in the comfort of his room, he received a mail asking for certain information to process his insurance benefit and it was paid to him there after without his physical presence in the company.

Still on the forecasts, Adonri said, the hunched economy could still cast a shadow on insurance performance in the fourth quarter. He said there could be a slow down as a result of staggering economy, “as business activities decline, income to insurance companies would also decline” as new covers would not be sought for non existing businesses.

Besides, he said interest rates in the financial market is also declining and most insurers hold treasury instruments, income may not also grow the way it has been previously. That notwithstanding, it is expected that insurance will still be profitable.

He also pointed that the forecasts cannot be sweeping performance for all quoted insurance companies, “the gains expected is for some of them that have been profitable. After the 2008 global meltdown, a lot of them were incapacitated and have still not recovered. They have not been doing well and the market has not been rewarding them and their prices are still very low.

The story is different for those that have successfully emerged from that crisis, “they have rebuilt their balance sheet, have been profitable and have remained profitable. Those are the ones the market are rewarding and, we can count them on our fingers. The capital market will only reward those that are performing well and rewarding investors.”

Mr. Fakrogha also said the expected good performance from the companies forecasts were not enough to push up stock price from their current low price tags of insurance stocks. He said it depends on investors expectation; if companies after good performance fail to declare dividends, stock prices would not go up. However, if the performance of the company improves, it will reflect on the share price.

He also said insurers improvement in digital transaction has warmed them into the arena of generation Z who are internet savvy and do not have the patience to sit in insurance offices but would rather transact online.

He noted that insurance companies now meet them in the web and more of these young people are embracing insurance. By so doing, it will increase insurance policy sales and at the same time increase their bottom line.

The notable presence of insurers in the digital space, he said is making analysts to believe that there is going to be a better prospect for insurance companies before the end of the year.

Previous Post

Small, Medium Enterprises Swell CPS Compliance

Next Post

AIG’s Baldwin Named IIL President

Nwanne Ikemefune

Nwanne Ikemefune

Related Posts

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert
Insurance

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Global Insured Natural Catastrophes Losses Hit US$100bn
Insurance

Global Insured Natural Catastrophes Losses Hit US$100bn

March 27, 2023
Insurance

Invest In Speaking Customers Language Not Yours, Insurance Industry Charged

March 26, 2023
Next Post
Insurance institute of London

AIG's Baldwin Named IIL President

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

July 30, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

November 2, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
ncrib logo

NCRIB And Universal In Pictures

August 23, 2020
Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

Reinsurance Rates May Increase Into 2022, But Momentum To Wane: Fitch

April 13, 2021
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

December 6, 2021
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

February 1, 2021
NCRIB Sets The Stage For Adaramola’s Tenure

NCRIB Sets The Stage For Adaramola’s Tenure

March 18, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

PenCom Board Back-To-Work Pass, Gets Tick Over

February 1, 2021
PTAD Wipes 21,227 Parastatals Pensioners From Payroll

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
How Strong Is The Reinsurance Sector Going Into 2021?

How Strong Is The Reinsurance Sector Going Into 2021?

7219
Scib CEO Tinubu

Professionals Want Value Dimension Added To Enhance Compulsory Insurance

6812
Allianz Claims Survey Shows Changing Claims Patterns

Internal Failures, Major Cause Of Cyber Claims

5464
Anchor MD Loses Father

Anchor MD Loses Father

1574
As Nat Cat Losses Mount A Resilience Mindset Matters More Than Ever

As Nat Cat Losses Mount A Resilience Mindset Matters More Than Ever

1566
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Leads With ISO/IEC Re-certification

1001
NIID: Dare Project To Take back Motor Policy From Touts Still Surging Despite Odds

NIID: Dare Project To Take back Motor Policy From Touts Still Surging Despite Odds

965
PenCom Trigger Lifts Transfer System Off The Starting Block With Split Responsibilities

Pension Funds Encounter First Waterfall

398
National Assembly Principal Officers Set To Strip Staff Of CPS Without Consent

PenOp Rails Against National Assembly Secret Bill To Exempt Own Workers From CPS

356
Old Mutual Points Nigerians To Insurance-backed Savings Plans To Hedge Economic Volatilities

Old Mutual Points Nigerians To Insurance-backed Savings Plans To Hedge Economic Volatilities

338
Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
Global Insured Natural Catastrophes Losses Hit US$100bn

Global Insured Natural Catastrophes Losses Hit US$100bn

March 27, 2023

Invest In Speaking Customers Language Not Yours, Insurance Industry Charged

March 26, 2023
NAICOM Head office

Insurers Claims Obligation Increases By 18% In Q4 2022, N244.3bn Paid

March 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

Nigeria’s Insurance Industry Gross Premium Muscle Lifts N776.2bn To Closs 2022

March 23, 2023
Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

March 23, 2023
Tax Administrators Charged To Match The Pace Of Global Technological Advancements

Tax Administrators Charged To Match The Pace Of Global Technological Advancements

March 21, 2023
Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

March 20, 2023

FIRS Feast Of MoU Snaps UK Counterpart

March 18, 2023

Recent News

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
Global Insured Natural Catastrophes Losses Hit US$100bn

Global Insured Natural Catastrophes Losses Hit US$100bn

March 27, 2023

Invest In Speaking Customers Language Not Yours, Insurance Industry Charged

March 26, 2023
NAICOM Head office

Insurers Claims Obligation Increases By 18% In Q4 2022, N244.3bn Paid

March 26, 2023
NAICOM Regulation Stirs Clear Of Wild Spin Focuses On Mid-Point With Policyholders And Operators

Nigeria’s Insurance Industry Gross Premium Muscle Lifts N776.2bn To Closs 2022

March 23, 2023
Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

Image Spin: Diipo Olarenwaju Says Blockers Of Loss Adjusters Vital Role Will Be Challenged

March 23, 2023
Tax Administrators Charged To Match The Pace Of Global Technological Advancements

Tax Administrators Charged To Match The Pace Of Global Technological Advancements

March 21, 2023
Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

Ojumah’ Exploits Earn Induction Into Sanlam Pan Africa Council Of Elders

March 20, 2023

FIRS Feast Of MoU Snaps UK Counterpart

March 18, 2023
Guinea Insurance Sets For Return To Profit Turf

Guinea Insurance Sets For Return To Profit Turf

March 18, 2023
Image Spin: Farewell For Omolola Adekunle Bankole

Image Spin: Farewell For Omolola Adekunle Bankole

March 17, 2023
Seplat Energy Says Allegations Against CEO, Board Untrue, Misleading

Seplat Energy Says Allegations Against CEO, Board Untrue, Misleading

March 16, 2023
Transactional Risk Insurance Now Mainstream Product – Report

Transactional Risk Insurance Now Mainstream Product – Report

March 15, 2023
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

Nigeria’s Low Loss Ratio Crashes The Essence Of Insurance – Actuary Expert

March 29, 2023
Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

Fitness Enthusiasm, NEM Insurance Spins Wellness In The Public Space

March 27, 2023
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2023 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In