Niger Insurance Plans N15bn Assets’ Sale To Improve Solvency.

71

In its efforts to navigate the current harsh business climate and remain relevant, Niger Insurance Plc will offload its real estate and investment property valued at N15billion to improve its balance sheets.

The company has battled depreciation on all fronts and the Shareholders who approved the sale of the assets believed an anticipated N15 billion proceeds will boost liquidity, ensure reserve adequacy and improve solvency margins as well as recapitalise its operations.

Its managing director, Edwin Igbiti at the 2019 annual general meeting of the company, in Lekki, Lagos, Wednesday said, “we are encouraged by the progress made so far, and confident that both our capital restructuring and recapitalisation efforts will be successful in line with NAICOM’s regulatory timelines.”

The underwriting firm currently invests in data analytics and technology to differentiate its offerings, drive sales, improve service standards and operating efficiency, having upgraded its information systems, including its core insurance application and deployed digital platforms and technology solutions to all its office locations across the country.

“We have reviewed our locations strategy to align with target markets/segments as well as optimize costs. Also, we are redesigning and simplifying our offerings to allow flexible pricing and varying customer preferences. I have no illusions that there is still a lot of work ahead and trust that we can count on the continued support of our esteemed shareholders and other stakeholder groups over the long- term,” Igbiti noted.

On its obligations, the chairman, Stephen Dike, said the company paid N1.7billion as claims and benefits to its policyholders in 2019, mixing up from the N1.6 billion paid in 2018 financial year.

He added that the company has been aggressive in its efforts to unlock capital through restructuring of its investment portfolio while divesting from under-performing asset classes, in a bid to continue to perform its civic duties and responsibilities to policyholders, shareholders and stakeholders respectively.

Comments are closed.