Matthew Otoijagha
The Managing Director/Chief Executive Officer, Leadway Assurance Company Limited, Mr. Oye Hassan-Odukale has said that the company currently has shareholders’ funds in excess of N40bn compared to the N15bn required for a Tier 1 composite insurer to underwrite all risks in the country.
Hassan-Odukale, who is also the Chairman of the Sub-committee on Publicity and Communication of the Insurers’ Committee, said this while commending the National Insurance Commission for the introduction of Tier-Based Minimum Solvency Requirement Structure in the insurance industry.
He stated, “Using Leadway as an example, I have the pleasure of reporting that we fall within the Tier 1 bracket as we currently have shareholders’ funds value in excess of N40bn compared to N15bn required for a Tier 1 composite insurer.
“A number of other Nigerian insurers are also within this tier. We believe this TBMSR is good for our industry, as it helps to promote the financial health of insurers and ultimately consumer confidence.”
The Leadway boss said that the new regulation would help to restructure the market in a way that insurers could choose which part of the consumer segment (retail, commercial or industrial) best was served, based on the capital fund that it held or was able to deploy.
With this restructuring, he added, insurers did not have to be compelled to increase capital to underwrite risks that could stress their capital without delivering commensurate returns to capital providers/shareholders.