MD/CEO Speech

THE MANAGING DIRECTOR/CEO OF GREAT NIGERIA INSURANCE PLC,
MRS. CECILIA O. OSIPITAN’s NEW YEAR ADDRESS TO MEMBERS OF STAFF AT THE NEW YEAR STAFF MEETING HELD ON TUESDAY, JANUARY 3, 2017 AT THE HEAD OFFICE.

 

2017: ‘ASSURED COMMITMENT: SUCCESS ASSURED’

Dear Team Members,

I welcome you all back to work after the Christmas and New Year holidays. I believe you all had fun and good rest. For those who travelled long distances to celebrate with families and loved ones; I thank God for journey mercies and for those who are yet to return due to one reason or the other, I wish them the protection of God Almighty and safe trip back. To those who were around through the holiday, I say well done, and thank you for your sacrifices.

You will recall that the Finance Minister declared that the country’s economy had gone into recession by mid-2016; this created a challenging business environment as the cost of doing businesses went up by more than 300%. Noting that the economic challenges has forced many blue chip companies to wound down their operations in Nigeria. Despite all of these, our company struggled to remain strong and healthy. These would not have happened but for your steadfastness and commitmentto the goals and aspirations of our great company. To this end, your sacrifices arenoticeable, commendable and I say a BIG thank you to all.

Dear colleagues please do not lose your guard yet. Whereas economic experts have predicted that all indicators point to a particularly difficult year and may be more challenging than what was experienced in preceding year; the economy may be plagued by scarcity of foreign currencies, further devaluation of naira, high inflation rate, high unemployment, and unstable prices of crude oil in the international market. However, every indices from the federal government hold promises that the 2017 budget would turn the economy around.

In our individual lives and as a company, we must shake off whatever remaining lethargies of previous years and take the quantum leap. As individual staff, you must ensure that you positively impact the business either by increasing productivity or reducing cost or both. We shall fast track our steps towards accomplishing our goals by achieving a strong market share growth as well as improving our bottom line numbers. Believe me, this task is not easy but as a strong team, we should believe in our brand, work together and our collective success is assures.

On our part as Management, we shall continue to proactively take measures to mitigate the impact of the adverse business environment by continuing to drive change in our company processes and strategies. The expected achievements for this year will be the collective responsibility of all of us working as a team. To ensure this, our performance management system will constantly monitor individual/team performance. Everyone is expected to play a part in our collective will for the quantum leap. This therefore informs the choice of our theme for 2017 which is ‘ASSURED COMMITMENT: SUCCESS ASSURED’. This theme recognises that we are on the rise and therefore challenges each and every one of us to IMPACT this trajectory. We must all identify areas to impact.

Our corporate New Year resolution is to surprise our shareholders with outstanding returns on their investments. Besides surpassing financial performance, we intend to take our status several steps ahead.

ABOUT US:

The New Board Constitution: Following the divestment of Wema Bank Plc and acquisition of its 75% equity stake by Insurance Resourcery Consultancy Services Limited in 2012/2013 a new Board of Directors was constituted.However, the exit of one of the core investors necessitated a reconstruction of the board in 2016.

The new Board membership is made up of reputable Nigerians with impressive track records of professional and business achievements. Their expectations of us are very high and we must make good the confidence reposed on us.


2016 ECONOMIC OVERVIEW:

Nigeria faced its worst economic crisis in more than 20 years as the economic contraction worsened by more than expected in Q3, driven by a contraction in the oil sector, which is the country’s largest source of revenue. Despite Q3’s abysmal reading, the available data and developments supported the view that the economy had bottomed out, though economic activity remained weak and structural imbalances persisted. The non-oil sector posted flat growth in Q3 after contracting for two consecutive periods. Forward-looking indicators from Q4 showed that business confidence surged to a ten-month high while the Manufacturing PMI improved but remained in contraction. The output cut agreement reached first by OPEC members in late November and on 10 December by OPEC and non-OPEC members was expected to give Nigeria’s beleaguered economy some breathing room since the deal exempted the country from cutting production.


The country's economy contracted by 2.06 percent in the second quarter between April and June 2016 according to figures made available by the Nigerian Bureau of Statistics (NBS). That is the second straight quarter of declining growth. Declining oil prices have hurt a number of countries worldwide, like BrazilRussia, as well as U.S towns that saw massive growth amid a fracking boom. Nigeria was hit especially hard by the decline in oil since crude oil sales account for 70 percent of government income.Crude prices rebounded slightly, at about $45 per barrel, but still lag at less than half what they were before a global glut struck.


According to the review conducted in September, the current economic recession will outlast 2016, with a Gross Domestic Product (GDP) contraction of 1.7 per cent. The country last witnessed a recession, for less than a year, in 1991, and experienced a prolonged one that started in 1982 and lasted until 1984. Inflation rate was at 17.2 per cent, the highest in a decade. According to TradingEconomics.com and National Bureau of Statistics, Inflation Rate in Nigeria increased to 18.48 percent in December 2016 with unemployment rate rising to 13.9 per cent.

 

As part of economy revival measures, the Government began the implementation of some reforms to boost the economy and lay foundation for renewed growth, such as increased spending on infrastructure, rationalization of the public sector in order to cut the cost of governance; enforcement of the single treasury account to block financial leakages; renewed efforts at enforcement of tax compliance; preparation of zero-budgeting and increased ratio of capital to recurrent expenditure to 30:70.

 

The Naira depreciated to a record low of N385-N400/US $1.00 which showed an unprecedented decline of 13.8 per cent in the parallel market. The Central Bank of Nigeria (CBN), tried to salvage the situation by supplying foreign currencies at the interbank market where banks buy foreign currencies at the official rate of N197/US $1.00. Unfortunately, due to the low volume supplied; the demands presented were unmet forcing the Naira to depreciate further.

 

Security remained a major challenge, in the northeast in particular. While the military stepped up the fight against the Boko Haram insurgency the humanitarian situation continued to deteriorate. The number of internally displaced persons was estimated at over 2 million, located mainly in the cities where conditions are safer. Both the government and development partners continued to explore additional ways of improving the situation.


The economic contraction is fairly broad and includes both oil and non-oil sectors; the oil sector contracted by 17.48% and non-oil sectors by 0.38%. Virtually all major economic sectors were in recession manufacturing, construction, trade, transport, hotels and restaurants, finance and insurance, real estate and government. The only exceptions are agriculture and telecommunications.

 

2017 ECONOMIC OUTLOOK:

According to Government pronouncements, the economy is expected to rebound in 2017 after contracting for the first time in over two decades in 2016. The recovery however, will be fragile. Tight liquidity conditions, capital controls and further militant attacks could dampen growth prospects. Panelists participating in the FocusEconomics Consensus Forecast project that the economy will grow by 1.4% in 2017. They foresee a 3.0% expansion in 2018.

 

Nigeria is still a mono-product economy because we still depend solely on crude oil. Oil constituted 78.9%, 75.4% and 72.3% of Government revenue and Export (FX) Income of 96.89%, 95.2% and 95.4% in 2012, 2013 and 2014 respectively. Oil price collapse negatively impacted on revenue as stated above; global oil price dropped from over $100 pb to below $50 pb. Consequently, foreign reserve plummeted to $30 billion as at 2015 from over $65 billion in 2007.

 

ANALYSTS OPINION
Despite the new change mantra under which the current government came to power, analysts review have shown that corruption and leakages still persists in government corridor.

Analysts are of the opinion that sustainable cities can only be driven by structural transformation if there is an integrated approach to urban planning.

 

It is expected that the Federal Ministry of Power, Works and Housing will review the urban development policy and work with other line ministries to improve service delivery and chart a way forward for tapping into the opportunities provided by the growth of cities in Nigeria. Lagos is one of the seven mega-cities in Africa and has a high potential for innovation and job creation opportunities in sectors such as construction, information communications technology (ICT) and retail trade.

 

 

OUR PATHWAY IN 2017:

 

SALARY REVIEW:

In view of the current economic recession and the need to assuage its impact Management in its magnanimous nature has approved a 10% increase in staff salaries across board. It is our belief that staff will reciprocate this kind gesture through excellent performance in the current year.

 

RETAIL AND E-BUSINESS:

It is no longer news that insurance penetration in Nigeria is below 1% and this is due to the obvious fact that the greater part of the population have refused to accept insurance as a risk transfer mechanism. For too long the general public has seen insurance from a negative perspective which is that ‘insurers do not pay claims.’

 

This erroneous belief compelled the National Insurance Commission (NAICOM), to launch the Market Development and Restructuring Initiative (MDRI) in 2009 to kick-start the process of deepening insurance penetration in the country. The overriding objective of the MDRI is to influence the creation of insurance products and services that will appeal to the people and to equally eliminate the already held opinion by the public that insurers do not pay claims.

 

Various sensitisation programs were organized in 2016 and more is expected to holdin 2017. The way forward for the insurance industry to thrive is that operators must show vested interest in promoting the retail insurance market segment, place interest of their customers at the centre of their business plan and strategy, as well as consistent review of their products & services and tailor their products to suit the present day customers.

 

Experts are of the opinion that operators must go a step further to focus less on corporate business and concentrate more on retail business as retail business is a veritable means of improving insurance market penetration in the country. GNI Plc keyed into the MDRI with the creation of the Retail & Micro insurance Division in 2014, having seen the need to be unique and not recycle already existing generic products.

 

Research has shown that out of every ten Nigerians only one citizen hasone form of insurance or another, revealing that a staggering 86 per cent of Nigerians are without Insurance. Clearly the market is patiently waiting to be exploited and the potentials remain huge.The major question now is: how ready are we to take advantage of the opportunities in the retail market this year?

 

As part of efforts to deepen the penetration of the retail market theDivision has set up teams of Financial Advisors in the following locations:

Walter Carrington, Lekki, Lagos
Aleshinloye, Ibadan, Oyo State
Century Mall, Alaba Int’l Market
Abeokuta
Osogbo
Isolo Shopping Complex
Surulere
Power line Isolo

The Division is working on opening more locations within the year while also developing new tailor-made retail products that will address customers’ specific needs; existing products will also be reviewed with a view to remaining competitive with unmatched benefits and competitive rate to enhance sales.

I enjoin us to brace up in readiness for on the opportunities embedded in the retail market.

 

MARKETING DEPARTMENT

Our marketers must prioritize quality service delivery with the sole aim of delighting our customers having realised that customer service is the major fulcrum to achievingsuccess, we can only remain in business when our customers are satisfied.In order to impact our rise, we must improve on our service delivery by monitoring all existing accounts for renewals and retention of same while also gathering quality information for securing new businesses.


Considering the fact that Government and corporate institutions have embraced cost reduction approach due to the current economic situation it will not be out of place for us to start targeting individuals as the potential viable alternative to achieving our set goals.

 

The Shareholders have very high expectations of us and we must strive to achieve and surpass these expectations. I know the strength of Team GNI and am very confident that as a Team we will accomplish all set goals and surmount whatever challenge we might encounter while impacting our rise.

 

MARKETING TARGET FOR SUPPORT STAFF

Product Marketing should not be seen as the sole responsibility of the Marketers but as a collective responsibility. Everyone is hereby required to align in achieving the ultimate goal bearing in mind that meeting personal marketing targets will enhance confirmation for non-confirmed staff and promotion for the confirmed staff which will subsequently impact the bottom line positively.


REGIONS, BRANCHES & BRANCH COORDINATION

Improved performance is expected from all the branch offices in 2017. We would not entertain any excuse for poor performance this year. The Management and Board are willing to render every necessary support required by any branch in their business generation drive. The agreed budget for the yearwill becommunicated company-wide and we must strive toactualise the target.

 

UNDERWRITING & RISK MANAGEMENT:

the Department is expected to exhibit visible improvement in the following areas:
Prompt claims settlement will be top priority
Ensuring that KYC forms are dully filled at the inception of every policy
Optimal risk assessment of every business before underwriting the business
The turnaround time earlier communicated to all staff will be strictly adhered to ensure quality service delivery
Proper filling of documents and records keeping
Timely survey inspection and early report submissionwill be the practice in 2017

 

HR & ADMIN:

The Management remains committed to ensuring that staff welfare is optimal and competitive. The Department shouldconsolidate its efforts at ensuringthe continuous developmentof human capital, personnel skills enhancement andcapacity building. It is pertinent to deepen our technical knowledge to enable positive impact on our service delivery.

 

Several performance improvement sessions and training programmes were conducted in the previous year. Relevant training programs required for staff improvement and development as identified and recommended by line Managers will also be considered in 2017.

 

In 2016, three Management staff were employed, two in the Finance Department: the Chief Financial Officer, CFO and the Head of Financial Reporting and Performance Management with one in the Marketing Department to Head the Ikeja Branch Business Development. They were specifically engaged for the company’s improved performance in their respective areas of specialization.

 

Facility maintenance is on-going companywide and all Branch Managers are implored toensure the immediate report of any damagefor prompt repair. As ambassadors of our great company, it is our joint responsibility to ensure that the company’s assets are well cared for and protected.

 

CUSTOMER SERVICE

A well-structured Customer Service platform was initiated in 2016; the objectives were tailored towards building strong renewal retention and creating achievable positive Customer Experience.


During the period under review conscious efforts were made to sustain positive Customer experience, renewal retention and acquisition of new businesses.

In the New Year, the Customer Service Unit should remains committed to be CUSTOMER-CENTRED by ensuring efficiency at its peak in customer service delivery to achieve retention and profitability.

 

LEGAL, AUDIT, FINANCE AND COMPLIANCE

It is pertinent for all Staff to abide by laid down rules and maximally comply with the company’s business policies and processes to avoid infringement with the various regulators that such as NAICOM, SEC, NSE, FIRS, LIRS amongst others.The industry maintained its resilience in the face of increase in regulatory supervision; penalties were on the rise even for flimsy infractions last year.

 

Financial fines on insurance companies over infraction have risen to N665.70 million in the last five years following the one recently imposed by the Nigerian Stock Exchange (NSE) on insurance companies for failure to forward their financial details before the stipulated deadline. The regulators supervision level has become more detailed, consistent, timely and digitally driven.

 

Going forward, the following precautions must be taken: Compliance issues must not be taken with levity We must ensure proper documentation of our records: KYC forms, payment records, renewals follow up, claims and survey management and filing ‘No Premium No Cover’:insurance has become ‘cash and carry’ transaction; the payment of all policies do not exceed the grace period as directed by NAICOM
Prompt rendition of financial returns to regulatory authorities

 

Please note that we have zero tolerance for penalties in the current year and beyond as the company will not be responsible for any penalty settlement. Any Staff responsible for any infraction will be responsible for its settlement. Let us all strive to pay attention to details.

 

CORPORATE COMMUNICATIONS & BRAND MANAGEMENT

In 2016, the Department explored the press, radio, CSR and personnel branding as visibility channels for projecting the GNI Plc Brand. Our GNIONGO weekly radio program became a widely recognised program which positively promoted the GNI Plc brand. The Brand also enjoyed positive media mention and exposure in the press, our Personnel branding effort equally afforded us the opportunity of putting a face to the Brand which engendered physical and emotional attachment to the brand.

The Brand maintained relevance within its operating environment by actively participating in industry related activities. The company also gave back to the community by supporting a physically challenged man.

 

In 2017, the Department intends to consolidate on already opened marketing communications channels to ensure that the GNI Plc brand is optimally projected and strategically positioned for patronage while continually rendering support to revenue generating Units/Departments in achieving the overall goal of the company.

However, everyone is hereby enjoined to keep preaching the GNI Plc gospel to all and sundry as the Brand evangelists and we shall be surprised at how effective and far reaching the‘word of mouth’advertisement can bring about the much desired positive result.

 

ICT

In 2016, the GniOngo platform was maximally utilized with its users empowered to freely sell and distribute our products and services real time online. The training and retraining of staff and newly employed Financial Advisors was conducted periodically in the course of the previous year.


The dedicated MTN mobile number for customer service management, product purchase option, policy enquiries and renewals, Claims enquiries became functional.

ICT Department will continue to provide support to all staff to ensure the smooth usage of all our applications. Now that our IT Sofware is relatively stable, we expect prompt production on end of month reports.

 

CONCLUSION:

Dear colleagues, It will be appreciated from the foregoing that our operating environment has been tough and challenging.

However, I wish to reassure you that you can look to the future with confidence that our company’s prospects are promising and bright while the fundamentals are strong. There are opportunities embedded in the economic recession and we must be determined to explore them in the most profitable but sustainable manner.

I am most certain that with our ‘ASSURED COMMITMENT; SUCCESS is ASSURED’ by the grace of Almighty God.

Thank you all for your undivided attention.

Welcome to 2017 and Happy New Year!

 

Cecilia O. Osipitan (Mrs.)
MD/CEO

 

ADDRESS OF THE MANAGING DIECTOR/CEO OF GREAT NIGERIA INSURANCE PLC, MRS. CECILIA O. OSIPITAN TO MEMEBERS OF STAFF AT THE NEW YEAR STAFF MEETING ON MONDAY JANUARY 4, 2016 AT THE HEAD OFFICE.

 

2016: OUR YEAR OF CONSOLIDATION AND HARVEST

My Dear Colleagues,

It is with very warm regards from the depth of my heart that I welcome you all into another glorious year. Together we weathered the storm of 2015, making the best of the opportunities the year presented as much as we could and coming out of it, standing.

 

We thank God that we are all alive, hale and hearty and ready to take on the challenges and harness every available opportunity embedded in the year 2016. It is my fervent prayer, that as we have seen the dawn of 2016, may the Almighty God keep us alive as we shall march on triumphantly throughout the New Year.

 

We all approached the start of 2015 with high hopes, great aspirations and expectations. We marshalled out our strategies and tactics on how to take maximum advantage of every opportunity at every point in time. I could see considerable efforts put in especially by the revenue generating teams but for one reason or the other, the market refused to yield to their aspirations but as soldiers that we are, we will keep marching on until our better becomes best and our best becomes glorious. This is my charge to us all in 2016.

It has never been in the spirit of the management team not to live up to expectation in terms of revenue and profitability targets. Perhaps, there is need to reinvigorate the zeal with which we take on our responsibilities. Consequently, we must renew our vigour to do more in 2016; our efforts must be directed towards recording outstanding performance both in revenue generation and profitability target in 2016.

 

 We are all in it together and together as a team we will accomplish our set goals and even surpass it like never before but we must work hard and smartly too to show to our various stakeholders that our corporate ethos reiterates an unalloyed commitment to achieving results in an outstanding manner.

As we begin our journey in 2016, let us all have it at the back of our minds that there shall be no excuses for laxity in terms of our performance and service delivery. We must all ensure that the customer at every touch point of our service delivery is treated with utmost sense of professionalism and candour in accordance with the dictates of our Mission statement of “Giving you peace of mind by keeping our promises”.

 

 This year, more than ever before, we must be committed to making our shareholders integral parts of our business by ensuring that we record positive results that will enable us give back to them as business owners who have invested their money, time and trust in us. It is an aspiration that we can bring to fruition through our dedication and commitment to duty. I urge you all to see this project from a common point of view so that at the end of the day, we all can be proud of our accomplishments.

 

2015 ECONOMIC OVERVIEW

The economy faced with challenges which seem to occur just about every decade: a decline in crude oil prices. The decline in crude oil prices had a negative effect on our economy both in the short and medium term.Other headwinds also affected the economy adversely such as; the supply gap in the foreign exchange market which caused an increase in the demand for dollars as against supplies, putting pressure on the local currency.

 

The crude oil price shocks resulted in decline in government expenditure and its multiplier effects impacted various businesses as well. GDP growth rate declined to 3.94% in Q1 and at 2% in Q3 as against the projected rate of 5.54%. The non-oil sector remains the economic main driver with sectors like Construction, Services, Agriculture and Trade recording growth between 4.47% and 11.17% while the oil sector recorded a decline of 8.15% as against 1.4% growth rate experienced in Q4 of 2014. The inflation rate increased from 8.2% to 8.4% at the end of Q2 and 9.23% at the end of Q3. 

 

The official Exchange rate remained at an average rate of N199/$1 even though the rate hovered around N220 to N225 in the parallel market.External Reserves grew marginally within the year from $28.5 billion in May to N31.53 billion as at July 2015.The Federal Government focused more on measures to increase non-oil revenues primarily through improved tax administration and policy, and deepening structural reforms for economic diversification.

 

The political atmosphere in the country however continued to be a source of concern as activities of the terrorist group Boko-Haram, continued to negatively affect business operations majorly in the Northern part of the country despite the concerted efforts of the Federal government to curb the menace of the sect.

 

But the resilient dynamism of our economy and full optimism that better days lies ahead for Nigeria. This belief is also buoyed by the cheer willpower of our people to continue to innovate even in the midst of crisis and bringing something out of nothing.

 

2015 INSURANCE MARKET OVERVIEW

The insurance market still appears to have a long way to go in meeting the needs of present/prospective customers as penetration level remain less than 1%.Although the total gross premium written tends to be on the increase, the growth is due largely to development in the life business. Most leading companies like Leadway Assurance and Custodian & Allied witnessed huge shortfalls of between N6.35billion and N7.18 billion in 2014.This disturbing trend continued in 2015 as a result of contraction in the general business and huge decline in premium rating due to price war among competitors.Government cut back on spending is still prevalent as no significant sum was expended on insurance since January 2015.Some companies embarked on adoption of new strategies to develop new markets and other channels of distribution such as enhancement of the e-business platform and greater investment in retail/personal lines businesses.

 

 

2016 INDUSTRY OUTLOOK

According to the Lagos Chamber of Commerce and Industry, LCCI, Business outlook in Nigeria will remain tense in 2016 due to the declining trend of global oil price and its attendant impact on government revenue and foreign reserves.

 

The implications on cost and access to credit will be undesirable, while businesses especially those with high forex exposure will continue to face challenges of meeting foreign obligations to suppliers and partners.

 

According to the LCCI the nation’s non-oil export is expected to increase in 2016 as a result of improved lending by Nigerian banks to Small and Medium Scale Enterprises, SME’s and Agriculture.“The targeted N300 billion by the Nigerian banks to boost lending to SME’s and the Agriculture sector in   will boost SME’s development and employment and thus increases non-oil export”. The development will also impact contractual trust and integrity because the risk of default in financial obligations in both public and private sectors will be as high as macro-economic conditions and cash flow remain tight.

 

The insurance industry will remain largely under penetrated with insurance density at about 0.225%. “Therefore, significant change in the industry with respect to growth and penetration remains bleak even as the sector is still highly fragmented. The declining GDP is also expected to strain to a large extent the performance of the industry.

The nation’s Gross Domestic Product growth is expected to rebound, though, slowly to about 3.5 in 2016, if the right mix of fiscal and monetary policies is put in place to stimulate the economy and attract domestic and foreign investment.

 

The subsidy arrears payment and end of subsidy regime is likely to result in improved market efficiency and profitability as downstream sector players explore pricing dynamics to boost investments.

 

Other macro-economic features for 2016 include clearer macro-economic policy space, expansionary fiscal stance, huge debit profile, improved power supply an infrastructure, PIB acceleration  and downstream deregulation and blockage of leakages by Treasury Single Account, TSA.

 

OPERATING ENVIRONMENT

The drive to continue to uphold comprehensive growth strategy still forms the background upon which our company is built. In the midst of the various challenges that characterized the industry within the year under review, the company was able to record Gross premium written of overN3Billion. Nigeria burgeoning economy and growing population offer great incentive to businesses in the country. The potentials of the economy cannot be hidden even in the face of renewed interest from international players.

 

All of these, coupled with low penetration rate of insurance market are pointers to great opportunities available in the insurance industry in Nigeria, hence, the need to continuously exploit the underdeveloped areas of the market cannot be over emphasised.

 

No doubt, you all will agree with me that we need to approach the New Year with cautious optimism given the various expert opinions that had visited the plummeting oil price in the international market experienced towards the end of last year, this with other mentioned factors have combined to cast uncertainties on the economic climate of Nigeria. In this wise, we must make prudence our watchword in every facet of our operations in ensuring that our cost profile is brought to the barest minimum. Our underwriting prowess and expertise must come to play whenever we are booking any business; whether new or an existing one. Our backend offices must also bear this in mind when dealing with vendors, agents etc. We must also be cautious of our environment particularly at this period in time while applying a lot of tact and decorum when we find ourselves in public places. We must remain true ambassadors of the Great Nigeria Insurance Plc Brand at all times. As a growing and dynamic organisation, Executive Management is committed to putting to optimal use our array of human and material resources in achieving our set goals as a forward looking enterprise and I cannot but appeal to everyone, that whenever you are called upon to assume any role in whatever capacity in moving the organisation forward ensure to approach the obligation with every sense of commitment and diligence.

 

FUTURE OUTLOOK

Our Company has commenced its brand revitalization process emphasizing effective customer communication. The drive to increase our premium income cannot be achieved in isolation so we will be ensuring that we improve on the visibility of the GNI Brand by putting in place a workable integration marketing communications plan. We shall continue to focus on increased premium income by ensuring that we keep our renewal businesses by at least 90% and also source for new ones. As part of our plan for sourcing for new businesses, we will strengthen our relationship with our business partnersand smartly continue to implement our retail market penetration strategy which we started since 2015.

Below are the perceived opportunities and threats in 2016:

 

Opportunities:

Government continued reforms
Development of the untapped retail market
Growth in property acquisition
Infrastructural developments
The projected loan boost for SME’s
Rapid change in ICT for service delivery and sales distribution

 

Threats:

Rate of inflation/Interest /Exchange Rate
Change in government policies
Government cut-back on spending
High Tax Burdens
Falling oil prices
Low level of transparency among industry operators
Security situation in the country
Competition (Rate cutting)

 

OUR RESOLVE

Aggressive Marketing
Adoption of superior risk pricing capability relative to the competition
Product innovation
Ensure the company has a fairly well diversified portfolio
Manage cost to ensure profitability
Strict adherence to compliance and regulatory issues

 

PRAYER

I would also like for all of us to embrace a sense of ownership. A sense of ownership is necessary for seamless accomplishment of set objectives. That is a determination to “do your work” and an awareness that “work is something that you must do”. Solutions to problems are generated when everyone takes responsibility for every action and inaction. Because now we are in a time when changes take place really fast, it is crucial that all of you think and act with a sense of ownership.

Please note that there will be zero tolerance for fines caused by non-compliance with regulatory requirements especially the ‘No premium No Cover’ provision, you are expected to transact and exhibit professional ethics at the highest level in the conduct of business.

 

My dear colleagues let me assure you all that Executive Management will not rest on its oars in ensuring that our welfare package remains competitive with a reward system that is administered in the most objective and sincere manner to all deserving staff as and when due just as we remain committed to charting an enduring career path for every member of staff from time to time.

 

Ladies and gentlemen, as we begin the operations of 2016, I urge you all to bring to bear from the innermost of your being, a renewed dedication to duty, a commitment to service and most importantly, the fear of God in dealing with all and sundry even when no one is watching.

 

More broadly, we need to fortify our overall potential for sustainable growth. To ensure the accomplishment of our set objectives in 2016, we need a high level of Passion, Empathy, Professionalism, Innovation, Team Spirit and Integrity in administering our operations in all ramifications.

 

I wish you all a very rewarding and memorable 2016 laden with contentment of heart, peace from within and above all, the grace, favour and mercy of God to do the right thing at every point in time.

Once again, Happy New Year!

Thank you for your attention.

Cecilia O. Osipitan (Mrs.)
MD/CEO