These are not the best of times for many Insurance CEOs right now. Many of them are worried at the new policy introduced by the Insurance authorities which requires that they top up their existing minimum paid-up capital.
Insurance operators are clamouring for the extension of the recapitalization deadline to December 31, 2020 from September 30, 2021. They also want it waived, the first phase of its segmented recapitalization for the insurance and reinsurance companies scheduled to end December 31, 2020, as directed by the regulator, the National Insurance Commission (NAICOM).
The
reasons given by the operators for the extension of the deadline are
proximately related to the huge impacts of the COVID-19 pandemic and #EndSARS
protests on their insurance businesses.
Thus,
they require enough time to fully settle back to their businesses to be able to
pursue more aggressive recapitalization agenda to meet the commission’s set
objectives by 31 December, 2020.
The
insurance companies are as well pleading with NAICOM to jettison the phase by
phase segmentation of the exercise – with the first phase billed to elapse on
December 31, 2020.
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This
plea was made during a meeting of the Chief Executives of all the insurance
companies with the Commissioner for Insurance at the industry’s professional
forum in Abeokuta, Ogun State recently. The operators are more concerned and
agitated, as it relates to meeting certain thresholds by 31 December 2020, and
failing to meet them would make the commission restrict the scope of business
insurance and reinsurance companies they can transact. In consideration of the
economic realities, a number of the operators are even appealing to the
commission to waive/step down the December 2020 deadline, to have ample time to
rejig and revamp their businesses.
Life
and General Insurance Companies were asked to shore up their existing minimum
paid-up capital from N2bn and N3bn to N4bn and N5bn respectively by the end of
December 2020, and meet the final minimum paid-up capital requirements of N8bn
and N10bn respectively by the end of September 2021.
Composite
companies and reinsurance firms were asked to shore up from existing minimum
paid-up capital of N5bn and N10bn to N9bn and N12bn by end of December 2020 and
to N18bn and N20bn respectively by the end of September 2021.
NAICOM
extended the deadline for insurance and reinsurance companies to meet its new
capital requirements to September 30, 2021 from December 31, 2020. NAICOM also
mandated that 50 per cent of the minimum paid-up capital for insurance and 60
percent for reinsurance must be met by 31 December 2020. NAICOM stated that
insurance companies that failed to satisfy the required minimum paid-up capital
by December 31, 2020 may be restricted on the scope of business they would
transact.Some insurance companies have been struggling to meet these
requirements. There were also wide-spread speculations over possible
mergers/acquisitions in the insurance sector.
Who
are the big players in the industry?
(1)
AIICO INSURANCE PLC
Aiico
Insurance is one of the well recognised insurance companies in Nigeria. The
company started in 1963 as a pension and asset management group. In addition,
the outfit also focuses on general and special risks, life assurance, annuity
and health insurance as well. Currently, AIICO is the 2nd largest insurance
company in Nigeria.
Babatunde
Fajemirokun Babatunde Fajemirokun is the Managing Director/Chief Executive
Officer of AIICO Insurance Plc.
(2)
CUSTODIAN AND ALLIED INSURANCE LIMITED
The
company is a brand under Custodian Investment Plc. Their offers include,
general and life insurance products.“Oluwole B. Oshin is Group Managing
Director & Executive Director
(3)
CONSOLIDATED HALLMARK
Consolidated
Hallmark is one of the top ten general business and special risk companies in
Nigeria. The company thrives on integrity and excellent service delivery. In
addition, they provide premium risk management solutions to their clients.
Interestingly, the company is the second insurance company to receive ISO
9001:2015 (Quality Management System Certificate).
Eddie
A. Efekoha is Chief Executive Officer, MD & Director at Consolidated
Hallmark Insurance Plc.
(4)
LEADWAY ASSURANCE COMPANY LIMITED
Leadway
began business in 1970 and is still one of the leading insurance companies in
Nigeria. Over the years, the company is known for giving clients prompt claims
settlement and innovative services. Leadway products include personal, SME, and
corporate offers. Tunde Hassan-Odukale as the organization’s Managing Director/
CEO effective January 01, 2020.
(5)
INDUSTRIAL AND GENERAL INSURANCE (LGI) PLC
IGI
started business in January 1992 as a composite insurer offering life and
general insurance as well as pensions and special risks. After four years of
operation, IGI appeared as the first private insurance company in Nigeria to
post N1billion premium income. In addition, IGI makes use of latest technology
in their operation. You can get quotations and make payment directly from their
website.“Yakubu Gowon (chairman), Remi Olowude (executive vice chairman &
CEO).
(6) GOLD LINK PLC
Goldlink
was registered on 15th April, 1992 but, got licensed on 8th September, 1993.
The company has a head office in Lagos and 16 branches across the country.
Their product ranges from engineering policies to group life, individual life
insurance and many more.Kenneth Edore Egbaran is Goldlink Insurance Plc's new
MD/CEO
(7)
NIGER INSURANCE PLC
Niger
is another company in Nigeria involved in various classes of insurance
business. Also, the company offers life and non life coverage to its clients.
At Niger, the product offers are flexible because they understand the diverse
needs of their clients.“Edwin Igbiti as substantive Managing Director/Chief
Executive Officer.
(8)
NEM INSURANCE
NEM
Insurance Plc started business in Nigeria in 1948 through the agency of Edward
Turner & Co. Their products and services includes corporate, personal and
SME products. Tope Smart is GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER.
(9)
MUTUAL BENEFITS ASSURANCE PLC
Mutual
Benefits Assurance Plc was incorporated on 18th April 1995 as a private limited
liability company but began operation on 2nd October, 1995. The company offers
life and general insurance business.Femi Asenuga is Chief Executive Officer, MD
& Executive Director at Mutual Benefits Assurance Plc.
(10)
STACO INSURANCE PLC
Staco
was incorporated in Nigeria on 10th October, 1991 but was licensed to carry out
insurance business on 1st October, 1994. The company also carries out general
and special risk insurance. In addition, Staco Plc upholds integrity and hard
work in their operations.“Mr. Oritsedere Samuel Otubu is the Chairman of STACO
Insurance Plc.
(11)
NICON INSURANCE
Nicon
was originally owned by Federal Government of Nigeria. It was established to
assist the development of insurance companies in Nigeria and to ensure that the
Federal Government’s assets and properties are protected. However, NICON was
privatized in December, 2005. Currently, the company has 40 branches and six
regional offices. Muhammadu Bagudu Hussaini is the Md/ceo.
(12)
LASACO ASSURANCE PLC
Lasaco
was incorporated on 20th December, 1979 but was granted license on 7th July,
1980. The company transacts life and non life insurance.“Dr. (Mrs) Olateju
Phillips, is Chairman of its Board of Directors.
(13) Royal Exchange Plc
Royal
Exchange began operations in Nigeria in 1918 and was represented by Barclays Bank DCO. Thereafter, in 1921,
Royal Exchange converted to a full branch of its then parent company, Royal
Exchange Assurance, London. Their products include Royal money guard, Royal
Burglary protection, Royal fire protection, Royal transit plan and many more.
Mr Olawale Omotunde Banmore is the GMD.
(14) GUINEA INSURANCE PLC
The
company is also a well sought after company in Nigeria. They began operation on
December 3rd, 1958. Their product covers general accident, engineering and
special risk. Ademola Abidogun is MD/CEO for Guinea Insurance.
(15)
ANCHOR INSURANCE PLC
Anchor
is a non-life insurance outfit registered and licensed in October, 1989, but
started full operation in November, 1989. Currently, Anchor has expanded to 19
branch offices across the country. Augustine Osegha Ebose is the Managing
Director/Chief Executive Officer of the company
(16)
WAPIC INSURANCE PLC
Wapic
provides general and life insurance policies at competitive rates for both
individual and corporate clients. They started in 1958 and got licensed to
carry out different classes of insurance including fire and special perils.
Adeyinka Adekoya Chief Executive Director, MD & Executive Director.
(17) GREAT NIGERIA INSURANCE PLC
GNI
has over 55years experience in underwriting, financial advisory and real estate
investments. Also, GNI Plc employs state of the art information technology in
its operation. Product offers include: group life assurance, fire and special
peril, workmen compensation and many others. “CECILIA OLAPEJU OSIPITAN -
MD/CEO.
(18)
ZENITH GENERAL INSURANCE COMPANY LIMITED
Zenith
is another leading insurance institution in Nigeria. Their product ranges from
corporate to personal and travel insurance. Zenith is committed to giving peace
of mind and creating values to people in a world of uncertainties.“Kehinde
Borisade, Managing Director/CEO.
19.
STERLING ASSURANCE PLC
Sterling
Assurance Plc was established in 1990 and offers all classes of general
coverage. Importantly, their products are backed up by highly profiled
reinsurance organisation like General Insurance Corporation of India (GIC),
Africa Re, Continental Re, etc. Also, the company’s product includes: Fire and
Special Perils, Burglary and House, Motor, Money Insurance and many more. FATAI
KAYODE LAWAL, MANAGING DIRECTOR/CEO.
(20) FBN INSURANCE LTD
A
company licensed to transact general insurance business in Nigeria. The company
is jointly owned by FBN Holdings Plc and the Sanlam Group. They provide
coverage for both individuals and corporates alike.“Val Ojumah, Managing
Director/ Chief Executive Officer/ FBNInsurance Limited.
(21)
STANDARD ALLIANCE INSURANCE COMPANY Limited
Standard
Alliance is licensed by the National Insurance Commission (NAICON) to transact
general and special risk business. The company got registered as a private
limited liability company in July, 1981 under the name Jubilee Insurance
Company Ltd. Their product covers, aviation, bonds, goods in transit and
machinery breakdown as well. Richard Ododo is the Managing Director/Chief
Executive Officer
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