GNI sees retirement portfolio grow 800% to 4.7bn in Q1’21

GREAT NIGE RIA INSUR ANCE PLC has said it recorded an impressive performance in its annuity business, improving the portfolio by 800 percent in the first quarter of 2021. The amount, which represents growth to over N4.7 billion, is far greater than the N52.5 million recorded during the same period in 2020.

Speaking on the sigtan, nificant year on year performance, Oyinkansola Sobande, corporate communications and brand manager, pointed out that retirement should be the time to live a stress-free life after years of active engagement and not a time of financial difficulties, hence the essence of annuity; to protect the future of retirees through guaranteed income for as long as they live.

Noting that the life policy serves as a retirement instrument option for retiring employees, she said the contract provides a monthly or quarterly payment starting immediately after retirement and continuing for the rest of the retiree’s life.

“The contract is often purchased by retiring persons who want income that is guaranteed to last for the rest of their lives, no matter how long that might be,” she said.

Explaining how the life policy works, Cecilia Osipimanaging director and CEO, Great Nigeria Insurance, said that life annuity is a stream of periodic payments that commences at a specified date – usually 50 years and above – and could be paid in accordance to the preference of retirees.

“The benefits include the continuous flow of regular income for the retiree, insulation from the risks associated with the investment of lump-sum benefits, structured management of resources and the transference of the risk of diminution in assets and possible failure of investments of retirees to insurance companies which are better equipped to manage such risks.

“Insurance remains the most reliable bedrock of our existence and cultivating the culture of insurance can never be over-emphasized,” she added.

Noting that there is a need to focus attention in that area, the CEO pointed to effective sensitisation of the insuring public as a means to attaining wide reach. She added that imbibing the culture of getting insurance cover to protect assets and lives in case of any eventuality is necessary.

She said, “The path through achieving growth and sustaining same is not without its challenges but with the perseverance and doggedness of every member of staff, success is guaranteed”.