Nigeria Liability Insurance Pool (NLIP), is projecting a double digit profit growth for the current year, a new improvement on the single digit growth for its profit in 2020.
The new managing director and chief executive officer, Mr. Olamide Olajolo, said the prospect for growth is first, fitted into the system on which the pool is established; the next layer is a motivated staff and specialised risk advice offered to members on risks ceded to the pool.
Besides, Olajolo who has traversed all the spheres of the insurance industry as a loss adjuster and diverse underwriting positions at WAPIC Insurance Plc now (Coronation Insurance Plc), Standard Alliance and the last before the switch to NLIP was Zenith General Insurance Limited, where he exited as executive director technical, business development and risk management. He was also a pioneer staff. Olajolo who has learned, relearned and unlearned special risks underwriting oil and gas inclusive, said he is coming to the pool with clear set short and long term goals for liability insurance development and would integrate liability products like aviation refuelling, cyber insurance and capacity development for oil and energy pool.
Setting the pool on a distinct pedestal and uncommon in the local market, he said the pool is a profitable organisation with a track record of uninterrupted good returns on investment. He reiterated that the returns is rare match for any investment.
He said the return on investment is very high and hovering between 20-25% with low claims ratio. This was also reinforced by the 30% claims drop due to the work disruption caused by the lockdown propelled by the Covid-19 pandemic. These indices he reiterated, will make a good return focused insurance company consider it a good investment destination by opting to join the pool.
On the strength of this, he said the prospect of new members joining the current group of ten is getting clearer as new members talks intensify with fruitful deliberations in the works.
Also raising the the prospects of the pool is the 2020 performance with the profit accounting for 25% of the gross premium. Emphasising the profit trend in the pool, Olajolo said the 7% profit increase recorded in 2020 has not diminished and the above-target performance in the first quarter is a trend that would most likely baring no disruptions run a full course till December 31. “We are hopeful for double digit growth in 2021,” he said.
The NLIP helmsman said the business development strategy of the pool rests on a growth projection of 25-35% and the earnings of the fist quarter establishes that. Also helping the pool good performance he mentioned, are the members of the pool whom he said are very supportive.