After Recapitalisation: Insurance Shareholders Demand Better Returns

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Insurance shareholders have called for increased penetration, improved dividends, stronger corporate governance cand enhanced regulatory supervision following the sector’s recapitalisation.

The shareholder associations made the call in separate interviews with the News Agency of Nigeria (NAN) on Sunday.

They said the fresh capital injected into insurance companies should translate into stronger business performance, better investor returns and greater economic contribution.

NAN reports that 50 insurance and reinsurance companies met the new minimum capital requirements following the recapitalisation exercise.

The requirements are N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers and N35 billion for reinsurers.

Mr Moses Igbrude, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), said insurance penetration should rise significantly from its current one per cent.

Igbrude urged insurers to leverage their stronger capital base to expand underwriting capacity, develop products and reach more Nigerians outside the formal insurance market.

He also said shareholders expected improved returns on their investments, stressing that the era of token dividends should end.

“In terms of operation, let us see insurance penetration in the country increase from the current level of one per cent.

“Within the next three, four or five years, we should see a significant improvement so that the money given to them will reflect in operations,” he said.

Igbrude said increased business and insurance penetration would generate more revenue for insurers, resulting in improved profitability and stronger shareholder returns.

“If they do more business and increase insurance penetration, it means there will be more money in their kitty, leading…