Region Re Settles N229.3 Million Claims in Six Months

Jul 21, 2010 (Vanguard/All Africa Global Media via COMTEX) -- Nigeria Reinsurance Corporation (Nigeria Re) has settled claims amounting to N229.3 million in the first half of the year, made up of $1.41 million and N17.8 million.

Information made available to Vanguard from the reinsurer announced that the claims which were all settled in six months, were paid in naira and dollar denominations, claiming to have paid all its genuine clients from January to June 2010. The claims were said to have been paid to the corporation's customers both within and outside Nigeria.

A breakdown of the claims figures showed that N11.73 million was paid to Nigeria Bottling Company for fire damage, while Oshioma Adamu of MTN Communications Limited got N3.62 million as death benefits, Sierra Rutile Limited was paid N1.27 million for fire damage, and Pivot Engineering was also paid N1.2 million claims for fire damage.

Besides, AES Nigeria Barges received a claim of $150,882, Omega Insurance based in Liberia was paid $213,663 for fire damage, MSI ASS/ Virginie II in Cameroun was paid $219,139 on marine insurance,Misr Insurance Company, Egypt/ High Park were paid $108, 715 for fire damage, and GIC India received two separate cheques of $189,720 and $258, 908 both for flood damage.

Apart from the fact that the Corporation view claims administration as very crucial to its operations, the firm also assist its cedants in the administration of large claims where they lack experience.

In appreciation of the fact that its purpose of being in business is to meet obligations covered under the policy of insurance/reinsurance arising from loss or damage resulting from the happening of an insured event, the Corporation's policy on claims is to meet all valid claims promptly after due documentation.

Nigeria Reinsurance Corporation was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations in 1978 as the nation's flag reinsurer, wholly owned by the Federal Government.

Nigeria Re accepts businesses from all countries in the West African sub_region. In the east African sub_region, the company accepts business from countries like Democratic Republic of Congo, Tanzania, Zimbabwe, and Kenya. In the northern part of the continent, Nigeria Re accepts businesses from Egypt, Morocco and Tunisia.

Outside the continent of Africa, Nigeria Re accepts business from Middle East based insurance companies in countries like India, United Arab emirate and China.

Initially, the Corporation was establish principally to stem the outflow of funds in form of reinsurance premiums, by accepting legal cession of all local insurance policies and writing inward international reinsurance businesses.

The Corporation has grown from a gross premium income of N 22 million and a profitability ratio of 6.5percent from 1978 to a gross premium income of N 3.1 billion and profitability ratio of 19.4percent in 2005.

The asset base of the Corporation has also risen from N18 million in 1978 to N3.7 billion in 2005. The company was given just N1, 500,000 as take off capital by the Federal Government. The Net Worth of the Corporation grew from N 4.9 million in 1978 to N 5 billion in 2005.