• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Monday, October 2, 2023
  • Login
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 Pension

IFRS 9 Adoption Takes Knock For First Pension Fund Drop

Nwanne Ikemefune by Nwanne Ikemefune
April 24, 2021
in Pension
0 0
0
idu okwuosa
0
SHARES
192
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

The Contributory Pension Scheme the system that pools pension funds since inception in 2004 and still held firm by Pension Reform Act 2014, has been on the upward swing earning the cynosure of the economy as the fastest funds growing industry. That record however, by mild industry figures though, lost the uninterrupted streak in growth in January 2021.

The flying high pension funds figures lost some power and dropped from high altitude to moderate level but enough to give concern to the operators to realign their investment options and hedge against future occurrences.

The dip picked by the National Pension Commission in the latest report captured the CPS for January 31 as N12.299tr, N7bn lower than the figure for December 31 2020, which was N12.306tr.

The views of high calibre operators gathered by env-4170486.atl.jelastic.vps-host.net hinged the drop in the value of pension funds on the adoption of International Financial Reporting Standard (IFRS). Pointing to the cause of the drop, the managing director at Access Pension Fund Custodian, Mrs Idu Okwuosa, pictured above, said the drop in the value of pension funds are unrealised losses due to fluctuations in the pricing and valuation of pension portfolios.”

Okwuosa explains: “Before the adoption of IFRS, most bonds were valued at amortized cost. However, a reasonable amount of bonds are now marked to market. The drop in value as announced by the Commission, are as a result of these adjustments.”

Mrs Amaka Andy-Azike MD/CEO Fidelity Pension Managers Limited

The managing director, Fidelity Pension Managers Limited, Mrs Amaka Andy-Azike, also tracing the drop in value of pension funds linked it to the adoption of IFRS 9 which required that certain portion of the bond portfolio can be marked to market.

The Fidelity Pension Managers chieftain puts the drop in perspective: “For most part of 2020, the price of FGN bonds increased persistently as CBN’s deliberate monetary policies, pushed down the interest rates. However, the market is now in a corrective phase after a long period of high price and the market expects government borrowing in the midst of poor fiscal conditions to crowd out other players and reverse the gains made in the prior year.”

Despite the concern over the drop, Okwuosa said the industry has not experienced dropped heads and does not share the opinion that it is a sign post to a higher drop in the future. Her response was, “No. Most operators have adopted the IFRS and in compliance with the regulator and have adopted business models that should protect the interest of unit holders.”

Still driving the industry assertion of controlled spill, Andy-Azike said: “Every investment in financial instruments is exposed to market risks. The ‘ups’ and ‘downs’ in the financial market are part of the risks as the economy grapples with growth and recession. Managing the risks is key to a sustainable investment growth.”

Previous Post

Pension Funds Encounter First Waterfall

Next Post

After The First Pension Fund Drop, Investment Managers Get SOS

Nwanne Ikemefune

Nwanne Ikemefune

Related Posts

Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab
Insurance

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
NLC, Pensioners Surround FG With Persisting Retirees Hiccups Want Integrated Improved Welfare
Pension

NLC, Pensioners Surround FG With Persisting Retirees Hiccups Want Integrated Improved Welfare

September 11, 2023
Customer Protection, PenCom Assigns RSA Holders, Retirees As Steering Head
Pension

Customer Protection, PenCom Assigns RSA Holders, Retirees As Steering Head

August 4, 2023
Next Post
IFRS 9 Adoption Takes Knock For First Pension Fund Drop

After The First Pension Fund Drop, Investment Managers Get SOS

Please login to join discussion
NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

September 23, 2023
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 And Universal In Pictures

NCRIB And Universal In Pictures

June 7, 2023
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
ncrib logo

NCRIB Sets The Stage For Adaramola’s Tenure

June 7, 2023
Preferred PenCom Logo

PenCom Board Crafted To Hedge Setback

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

PTAD Wipes 21,227 Parastatals Pensioners From Payroll

January 31, 2021
PenCom Approves Mrs Okwuosa New Access Pension Fund Custodian MD

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

February 1, 2021
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

2
Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

Ebere Nwoji Makes It Back To Back As 2023 Print Media Reporter

2
Regulators Clear Guinea Insurance  For Private Placement

Regulators Clear Guinea Insurance For Private Placement

2
Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

Authenticity Of Motor Policy, Technology Crowns Policyholders Verifying Partners

2
AIICO Head office

Car Insurance Takes A New Turn With AIICO, ETAP ‘Redefine Partnership’

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

Federal Government & NAICOM Working On New Guidelines For Insuring Government Assets

2
NAICOM Helmsman Thomas Leads African Insurance Supervisory Authorities

NAICOM Inaugurates Discount Rate Committee To Ease Insurance Contracts Under IFRS 17

2
Insurance Mastercard Joe Irukwu Passes On

Insurance Mastercard Joe Irukwu Passes On

2
AIICO Seeks NSE’s Nod To Conduct  Rights Issue

AIICO Seeks NSE’s Nod To Conduct Rights Issue

0
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

0
Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

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

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

September 18, 2023
ADVERTISEMENT

Recent News

Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 2023
AIICO Head office

AIICO Holds Three Dimensional Training: Insurtech, IFRS 17 & MI For NAIPE Corps

September 27, 2023
Dangling Claims Severity And Inflation Pose Global Insurer Cost Challenges- AGCS

Regulator Bidding, Insurance Companies USSD Make Motor Claim A Quick Fix

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

NAICOM Unlocks Insurance Operations With Open Cast Risk Based System

September 26, 2023
Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

Emir Of Kano Leads Insurance Penetration Urges Nigerians To Embrace

September 19, 2023
Heirs Insurance Group Wins Outstanding Insurance Group of The Year

Heirs Insurance Group Wins Outstanding Insurance Group of The Year

September 19, 2023
Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

Nasarawa Governor Makes Insurance Penetration Easy With Testimony That Insurance Works

September 18, 2023
Image Spin: Insurance, Pension & Stakeholders Bare Minds At NAIPE 8th Confab

Finance Expert Urges Govt To Position Pension & Insurance Sectors For Economic Development With Conducive Policies

September 18, 2023
Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

Benchmark Award: AIICO Receives The Baton Of Insurance Company of the Decade

September 18, 2023
First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

First Less Than An Hour Motor Claim Pay By Sanlam Nigeria Dazzles Customer

September 18, 2023
Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

Recyclers Association New Leadership Sets To Birth The Ideal Of Plastic Free Community

September 14, 2023
2023 Heirs Life Essay Championship, Kentimfon Ndanyongmong, Emerges The Champ

2023 Heirs Life Essay Championship, Kentimfon Ndanyongmong, Emerges The Champ

September 14, 2023
AIICO Upticks Service Excellence With Inaugural Annuitant Forum:

AIICO Upticks Service Excellence With Inaugural Annuitant Forum:

September 13, 2023
NEM Insurance NEM Insurance NEM Insurance
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

Leadway Assurance Leads With ISO/IEC Re-certification

Leadway Assurance Distributes B2B Travel Insurance In Nigeria In Partnership With Tune Protect EMEIA

October 1, 2023
AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

AIICO Knocks Down Insurance Barriers With Its Spiraling Digital Masterpiece

October 1, 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?

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