Nigeria: Global Pressure to Trigger Hike in Motor Insurance - AllAfrica.com

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In Toronto, Canada, car coverage coverage premiums are heading for an all clip high addition after respective old age of stableness or decline, government signaled last week

This came at the clip when the coverage marketplace in Federal Republic Of Nigeria is battling the National Committee for Insurance (NAICOM) for an upward reappraisal of the motor insurance 3rd political party insurance premium tariff.

That was not all, the coverage agents and agents are also known to be up in weaponry against the Mr. Fola Daniel led NAICOM as they demand for addition commission.

Already, some of the coverage companies in the marketplace have got stayed away from the handling of 3rd political party motor insurance, that is the compulsory policy prescribed as a stipulation for putting any vehicle on public roads. The companies which prefer to subvent the comprehensive motor coverage only point to the high cost of claim which the Act screen only unmaskings them to.

But fillers from other marketplaces like Canada be given to propose that the cost of motor coverage in Federal Republic Of Nigeria may not remain this low for too long.

ING Canada which depicts itself as the biggest place and casualty coverage company in Canada, anticipates to raise auto coverage rates this year, citing rising costs in Lake Lake Ontario and legal uncertainness in Alberta.

Vehicle insurance premiums "are likely to lift in 2008" although profitableness have got brightened since 2003 thanks to cost-limiting changes in assorted provincial laws, said Prince Charles Brindamour, promoted Jan. One to chief executive officer of ING Canada, bulk owned by ING Group of the Netherlands, which separately have the ING Direct branchless bank.

Brindamour said the auto insurance concern have been jolted by a Feb. Eight Alberta tribunal opinion that a $4,000 cap on pain-and-suffering awardings from soft-tissue hurts is unconstitutional.

The Alberta authorities is appealing but "there is uncertainness about the ultimate outcome," Brindamour said during a conference phone call to discourse ING Canada's 2007 results.

In addition, accident benefit and bodily hurt claims in Ontario have risen. He estimated that rates in the state declined two per cent last year, but ING - operating under the ING and Zane Grey Power trade names - raised rates in September and have applied for additional tramps in the first one-half of this year.

The company increased its dividend Wednesday and announced another share redemption while coverage a 23 per cent diminution in 2007 network income to $508.3 million from $658.1 million.

Fourth-quarter earnings were $95.8 million or 77 cents per share, down 12 per cent from a year-ago profit of $109.4 million or 82 cents per share, as investing consequences deteriorated.

October-December premiums slipped 0.6 per cent to $961.3 million, underwriting income deteriorated 24 per cent to $47.5 million, and there was a $3.3-million network loss on invested assets, down from a $15.3-million year-ago gain.

The quarterly dividend rises by four cents to 31 cents per share, yielding 3.4 per cent at Wednesday afternoon's TSX terms of $36.99, up 72 cents on the twenty-four hours with a 52-week high and low of $53.44 and $33.03.

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ING Canada, which bought back $500 million worth of stock a twelvemonth ago in a significant issuer bid, announced a normal course of study issuer command in which it may purchase back as much as five per cent of its remaining shares, which would be about $230 million at current prices.

ING Group will take advantage of the buyback, maintaining its ownership at 70 per cent, but Brindamour discounted guess the Dutch parent programs to sell all of its holding.

"While ING Canada is not a core concern of the grouping - and this is not new - it goes on to be a very profitable investing for ING," he said.