Shareholders and operators in the Insurance Sector on Tuesday lauded the
They spoke in separate interviews with
NAN reports that NAICOM had on Monday, in a circular with referenece No : NAICOM/
DPR/CIR/25-03/2019 /
Agboola said that the decision for the extension followed a review of the recapitalisation plans submitted by the operators and various levels of the compliance observed.
It also followed input from various engagements with relevant stakeholders.
In his reaction, Mr
"There was no way the commission could stampede the insurance firms with the recapitalisation, considering the warbling and unstable economy and the not clear policy by the Government.
'If the Acting Commissioner continues with this trend, then it will be better for the market; as there is no need to be too rigid because you are regulating, but rather consider the plight of the stakeholders, " he said .
Okezie urged NAICOM to improve on its policy for the sector, for the insurance companies to take their rightful position in the capital market which would in turn make the re-capitalisation seamless.
According to him, the effort, if made by NAICOM, will build the confidence of the public in the insurance sector.
"As a matter of concern, there is no will and confidence on the insurance sector.
"As at today, how many people patronise them? The share is lavishly below the power value.
"With the present reality, if there is going to be re-capitalisation, at how much price would they offer their Right issue or Public offer to the public or existing investors who will buy?
"When you have not been reaping or getting appreciable dividends from the one you invested as an investor, how will you invest more? " he asked.
Okezie, however, urged the Insurance and Reinsurance companies not to relax in their efforts and plans to meet up with the exercise despite the deadline extension.
He said that from information gathered, some of the insurance firms which had started the re-capitalisation in a bid to meet up with the initial deadline, might not be successful with their offer.
The shareholder advised that with the extension window, the
Okezie however stated that based on the new development, there is a future for most of the insurance companies to still be in the control of the local investors, instead of the foreigners.
Also, Mr Valentine Ojumah, Managing Director,
"I think the extension is good for the industry because operators now have more time to ensure they meet the minimum recapitalisation requirements, " Ojumah said.
According to him, it is in the best interest of the market to have more operators cross the deadline because it will increase local capacity and generally uplift the status of the industry.
Ojumah said that all stakeholders in the sector would benefit from a strong insurance industry, as it would increase the capacity to innovate, employ very competent staff and train existing staff better.
He said that more viable insurance firms would also generate higher premium income, pay more taxes and contribute a more robust percentage to the nation's Gross Domestic Product (GDP).
"In essence, I hope the extended time will be used judiciously to source the needed funds, " he said.
Ojumah, however, said that the extension did not make any difference in the case of
Mr Edwin Igbiti, Managing Director,
not to relent in their efforts to meet up with the exercise.
Igbiti said despite the challenges confronting the insurance company, it had not relented in its journey to meet up with the recapitalisation deadline.
He said that the firm was considering about three to four options.
These, according to him, include serious combination with like-minds to marry, private placement which will be allowed by shares reconstruction and also rights issue.
"By
Also, Mrs
She said that this was so, given that the industry clamoured for it, while commending the commission for the extension. NAN reports that NAICOM, in exercise of its statutory powers and regulatory functions, had on
The directive was with the exception of Takaful operators and Micro-insurance companies doing business in
Following the reviewed minimum capital requirement, the existing minimum paid - up capital share of Life Insurance business was reviewed and raised from N2 billion to N8 billion.
The new paid-up share capital requirement took immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in
NAN
Copyright Daily Trust. Distributed by AllAfrica Global Media (allAfrica.com)., source