Posted by KELVIN EGERUE, Insurance Editor on
BARELY days after the Federal Government announced a raise in the minimum paid-up share capital of insurance institutions in the country, leading insurance firms have declared their resolve to over shoot the limit.
BARELY days after the Federal Government announced a raise in the minimum paid-up share capital of insurance institutions in the country, leading insurance firms have declared their resolve to over shoot the limit.
Government had Monday instituted a new capital regime for the insurance subsector putting a minimum capital float of N10 billion for reinsurance firms. Non-life and life companies are to mobilise no fewer than N3 billion and N2 billion capital, respectively.
But while a long list of insurance firms are still in shock following, the imposition, Industrial and General Insurance (IGI) Company Limited said that it had already grossed N5 billion capital.
The company said that it has a short term plan of raising its capital to N10 billion. The ultimate target, it said, is to hit a N25 billion paid-up capital.
Incorporated in October 31, 1991 and registered as a composite insurer two months later, IGI has former Head of State, Dr. Yakubu Gowon, as chairman and Mr. Remi Olowude as Executive Vice Chairman. Other directors include former Central Bank of Nigeria (CBN) governor, Mr. Ola Vincent, Secretary General of the Supreme Council for Islamic Affairs, Alhaji Lateef Adegbite as well as former Director General of the Nigerian Stock Exchange (NSE), Apostle Hayford Alile.
Executive management of IGI had after securing clearance for its 2004 financial accounts declared that it has grossed a shareholders' fund of over N5 billion.
With the attainment of the N5 billion shareholders' funds, IGI has effectively become the first insurance company to meet the new N5 billion capitalisation requirement for composite insurance companies.
Already, the company's 2004 statement of accounts and annual returns have been approved by the National Insurance Commission (NAICOM), the insurance industry regulatory body.
Other details of the company's performance in 2004 will be unveiled to shareholders at its 13th Annual General Meeting scheduled for September 29, in Lagos.
According to IGI's Assistant Director (Corporate Communications), Mr. Niyi Obaremi, achieving a paid-up capital in excess of N5 billion is consistent with IGI's proactive strategy on capitalisation and its reputation for achieving ground breaking landmarks in the industry.
"In line with our vision of becoming a truly world class insurance company, IGI's Board of Directors has always emphasized strengthening of the company's capital base to enhance capacity and position the company strategically to cope with the dynamics of its operating environment," he said.
According to him, "the goal is to raise IGI's paid-up capital to N10 billion in the short term and N25 billion in the medium term," to further "underline the resilience of the IGI brand and our resolve to break new grounds in service excellence, knowledge and investment diversification and expansion at home and on the African continent".
In June 2005, IGI formally acquired majority shareholding in National Insurance Corporation Limited (NIC) of Uganda.
Announcing the acquisition which was the first in Africa by a Nigerian insurance company, Mr. Olowude, Executive Vice chairman of IGI, described IGI's take-over of NIC as "a realisation of our vision to improve trade and investment partnerships between thriving nations of sub-Saharan Africa consistent with the objectives of NEPAD".
According to Olowude, who is the Chairman of the Board of Directors of NIC, "IGI is fully prepared to maintain our lead in the insurance industry in Nigeria and will leverage this success to become a major player in the African insurance industry."