Struggling insurance firms made N572.43m income in 2016

Some insurance companies, numbering eleven (11) made just N572.43 million from their investments in 2016, according to a report released by the Nigerian Insurers Association (NIA).
The report obtained from NIA, stated that at the time these struggling firms, were counting the paltry sum, Leadway Assurance Company Limited, reaped N10.49 billion.
Other firms with huge investment income include AIICO Insurance Plc. with an income of N6.95 billion; African Alliance Insurance Plc. N3.07 billion and Zenith General Insurance Company Limited, N2.01 billion.
The 11 firms with paltry sum are Alliance & General Insurance Company Limited, N21.34 million; Alliance & General Life Assurance N76.54 million; Capital Express Assurance, N96.48 million; Gold link Insurance Plc, N34.11 million and International Energy Insurance, N62.97 million.
Others include, Universal Insurance, N87.41 million; Royal Exchange Prudential Life, N41.83 million; Unic Insurance, N18.59 million; Standard Alliance Life Assurance (Now parts of Standard Alliance Insurance) N58.59 million and Spring Life Assurance N33.62 million.
The Commissioner for Insurance, Mohammed Kari, who expressed worries over the level of investments made by the industry operators, at a forum recently in Abeokuta, Ogun State, noted that successful economies are characterized by a strong investment culture of which the insurance industry plays a vital role.
“It is long overdue that we make a change in the right direction. Successful economies are characterized by a strong investment culture of which the insurance industry plays a vital role. So we literally need to re-energize the insurance industry and commence playing our key role in boosting and growing our sector, and the Nigerian economy,” he said.
He noted that he is optimistic that once the sector can successfully navigate it challenges, it could be on its way to entrenching a financially solid, vibrant, viable and active industry that would bring about not only an increase in penetration, but the enhanced contribution to GDP, accumulation of long-term funds for infrastructural financing, job creation, and an improved standard of living.

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