Underwriting firms spends N68.57bn for expansion

Some insurance companies have so far borrowed about N68.57 billion to support their operations, it has been reliably gathered.
Data obtained from the Nigerian Insurers Association (NIA) revealed that Non-life operators borrowed N60 billion, while Life operators borrowed N8.57 billion.
According to the NIA, in 2015, International Energy Insurance Plc, had a borrowing liability of N4.46 billion, while Mutual Benefits Assurance Plc, had N4.07 billion.
Others are, Custodian & Allied Insurance Plc, N2.49 billion; Equity Assurance Plc, N1.95 billion; Standard Alliance Insurance Plc, N795 million; Prestige Assurance Plc, N223 million; Industrial and General Insurance Plc, N166 million; Alliance & General Insurance Plc, N90 million; Royal Exchange General Insurance Company Limited, N56 million; Investment & Allied Insurance Plc, N4 million.
Continuing, in the life arm, AIICO Insurance Plc, N1.13 billion; Unic insurance Plc, N541 million; Alliance & General Life Assurance Plc, N303 million; Niger Insurance Plc, N278 million and Standard Alliance Life Assurance Limited, N24 million.
2016 accounts revealed that, Mutual Benefits Assurance Plc, had N6.25 billion; International Energy Insurance Plc, N4.46 billion; Equity Assurance Plc, N1.13 billion; Standard Alliance Insurance Plc, N1.26 billion; Sovereign Trust Assurance Plc, N108 million; Great Nigeria Insurance, N519 million; Prestige Assurance Plc, N152 million and Industrial and General Insurance Plc, N166 million.
In the life arm, AIICO Insurance had, N1.78 billion; Niger Insurance Plc, N400 million; Alliance & General Life Assurance Plc, N303 million and Unic Insurance Plc, N267 million.
The report also revealed that firms such as Leadway Assurance Limited; NEM Insurance Plc; Zenith Insurance Limited; Axa Mansard Insurance Plc; FBNInsurance amongst others did not borrow within the period.
The Deputy Commissioner, Technical, National Insurance Commission, Thomas Sunday, said firms are allowed to borrow, provided the funds are put in good use.
He noted that NAICOM will continue to monitor loan portfolio of insurance firms to ensure they did not jeopardize policyholders trust.
Managing Director Lancelot Ventures Limited, Adebayo Adeleke, who is also a prominent member of Independent Shareholders Association of Nigeria (ISAN), said companies across the globe borrow, but the reason for borrowing should be clear and the funds put in proper use.
Shareholders Activist & Co-Founder, Nigeria Shareholders Solidarity Association (NSSA), Alhaji Gbadebo Olatokunbo, said insurance firms can borrow for investment, but not to run overheads and settle claims.
According him, insurance firms, especially life operators should be in position to lend due to the pool of life funds in their custody.

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