The N300 million insurance rebranding project designed to redress the negative image and perception of insurance amongst Nigerians failed due to a plethora of reasons ranging from defective messaging, poor execution, lack of focus to target audience and ineffective monitoring and feedback mechanism.

The insurance rebranding project which kick-started in 2018 was an innovation of the Insurers’ Committee, comprising of the managers of the 58 registered insurance companies as well as the National Insurance Commission (NAICOM), aimed at deepening insurance acceptance and penetration through massive insurance education and awareness across all states of the federation, even though, Lagos and Abuja wre expected to be the pilot states.

While NAICOM had contributed N40 million towards the project, the 58 insurance companies were said to have contributed the remaining N260 billion, even though, Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB), Institute of Loss Adjusters of Nigeria (ILAN) and Association of Registered Insurance Brokers of Nigeria (ARIAN), have promised funding support to the rebranding initiative.

The insurance industry rebranding was mooted to change the current poor public perception about insurance products and services and also to educate the public on the need to embrace insurance as a tool for poverty alleviation.

Part of the exercise which was outsourced to Alder Consulting was to create a tempo and the hype that would attract the public attention to insurance through print, electronic and social media platforms.

An operator described the failure of the project as an embarrassment to the entire insurance industry. He warned that it would be difficult to get many underwriters to sign on to a similar initiative in the future, especially with the challenge of recapitalisation staring operators in the face currently.

R-L: Okonlawon Adelagun, ED, Technical; Daniel Braie MD/CEO,  both of Linkage Assurance Plc making a presentation to Shehu Zaki, Deputy Corps Marshall, Federal Road Safety Corps (FRSC), standing in for Corps Marshall Boboye Oyeyemi,  when the Company donated reflective vests to FRSC as part of its Corporate Social Responsibility activities towards the ember months traffic peak period. Watching are Assistant Corps Marshall, John Meheux; Deputy Corps Commander, Martha and Corps Commander, Pauline Olaye at the ceremony

The Securities and Exchange Commission [SEC] has pledged to support insurance operators seeking funds from the capital to meet the new recapitalisation set for the industry by the National Insurance Commission (NIACOM. SEC advised insurers to take advantage of long-term funds in the capital market.

The call was part of the highlights enumerated at a meeting held in Lagos by members of the reconstituted Insurers’ Committee.

Briefing journalists after a meeting of the Insurers Committee in Lagos, a member of the committee, Mrs. Ebele Nwachukwu, revealed that not less than 10 companies had approached the capital market to seek assistance towards raising funds for the recapitalisation exercise.

She assured that the commission had equally promised to render the necessary assistance within its regulatory power to support the companies, stressing that insurers should take advantage of the capital market long term investment fund to boost their finances.

She said the recapitalisation exercise was intended to strengthen the financial position of the industry.

Nwachukwu also quoted the Acting Commissioner for Insurance, Mr. Sunday Thomas, as saying that the National Insurance Commission [NAICOM] had always partnered with SEC and other relevant agencies to seek palliatives for the insurance industry.

Nwachukwu, who is also the Managing Director, NSIA Insurance, also revealed that the committee prepared the minds of the operators toward the adoption of International Financial Reporting Standards 17 [IFRS], saying funds should be budgeted for training to make the adoption easier.

The committee also disclosed that the insurance industry rebranding had been put on hold due to poor financial response on the part of some members.

The rebranding project has been stopped. We did because of issues regarding poor participation by operators. We have to come back to it. We are back on the drawing board,” the committee noted.

Following the successful completion of the Rights Issue Offer of Sovereign Trust Insurance Plc, the Securities and Exchange Commission, (SEC) has given approval to the underwriting firm to make public to the company’s shareholders and other related parties the result of the offer which ended on August 21, 2019, after it was extended at the expiration of its initial closing date of July 31, 2019.

It will be recalled that a total of 4,170,411,648 ordinary shares of 50 kobo each at 50 kobo per share on the basis of (1) new ordinary share for every (2) ordinary shares of 50 kobo each held in the Company as at the close of register on January 15, 2019 was placed on offer to the company’s shareholders.

At the close of the Offer period, a total of 110 (one hundred and ten) acceptance forms for 3,053,642,718 ordinary shares of the Rights Issue were received out of which, 108, (one hundred and eight) forms were found to be valid and accepted while 2 application forms were rejected as the buyers did not qualified for the shares as at the qualification date.

In all, the Rights Issue offer was 72.50% subscribed which has been considered quite commendable by industry watchers considering the bearish nature of insurance stocks in the market in recent times.

A further breakdown of the basis of allotment shows that 99 shareholders fully accepted their rights totaling 1,262,022,678 ordinary shares, 9 shareholders with provisional allotment of 25,573,204 ordinary shares partially accepted their rights totaling 6,430,000 ordinary shares while renouncing a total of 19,143,204 ordinary shares. No applications were traded on the floor of The Nigerian Stock Exchange during the period of the Offer.

Spokesperson for Sovereign Trust, Mr. Segun Bankole, DGM (Sales & Corporate Communications), stated that a total of 2,882,815,766 ordinary shares were fully renounced, while a total of 19,143,204 ordinary shares were partially renounced, bringing a total number of renounced ordinary shares to 2,901,958,970. Out of the 99 shareholders that accepted their rights in full, 57 shareholders applied for additional 1,755,190,040 ordinary shares and were allotted in full.

The un-allotted shares totaling 1,146,768,930 ordinary shares of 50 kobo each shall revert to the company’s Authorized Share Capital.

Consequently, the Management of Sovereign Trust Insurance Plc has notified all Shareholders that the allotment of the rights issue will be communicated by way of e-certificates in the names of all successful shareholders through the company’s Registrars, Meristem Registrars Limited, Lagos, not later than December 24, 2019.

The Managing Director of the underwriting firm, Mr. Olaotan Soyinka has also reiterated the fact that the company has set a growth agenda which is aimed at positioning the insurance company as one of the top players in the industry, particularly, as the industry prepares for another round of recapitalization in the year 2020.  He equally noted that the company is committed to creating exceptional value to all its shareholders.

L-R: EKPERAHWA JAMES (HEAD, FINANCE & ACCOUNT), ALESHINLOYE ROTIMI (HEAD, STRATEGY & PERFORMANCE), LEKE OGUNBAMBO (HEAD, LEGAL & COMPLIANCE), KUPONIYI KUNLE (HEAD, ICT), IGBITI EDWIN (MD/CEO), UMUOLO JANE (HEAD, GROUP LIFE BUSINESS), SALAMI ADEMOLA (CHIEF FINANCE OFFICER), SETH EPELLE (HEAD, MARKETING)

 At a recent breakfast meeting, Niger Insurance Plc, one of the foremost composite insurance companies in Nigeria shared with members of the press the company’s growth & transformation plan.

Designed to reposition this well-known company for service excellence and competitiveness in a rapidly changing operating landscape, the company’s transformation blueprint over the next 5years (2020 to 2024) focuses on operational and technological advancements in delivering bespoke Insurance solutions to businesses, institutions and the growing populace of Nigeria.

The implementation of the transformation plan already began in the fourth quarter of 2019 following the appointment of the company’s new MD/CEO – Mr. Edwin Igbiti, a vastly experienced and well- respected business leader who recently completed five meritorious years as MD of AIICO Insurance Plc.

The need for Niger Insurance Plc’s transformation is underscored by a combination of market & regulatory changes. Having been in operations for 57years, it had become imperative to address legacy challenges as well as innovate to achieve service excellence, agility and & competitiveness.

According to the MD/CEO, Edwin Igbiti, the three pillars of the transformation plan are:

• Strengthening our balance sheet (financial strength)
• Strengthening our People (Talent & Innovation)
• Strengthening our business model (Sustained growth & Profitability)

In order to ensure a successful execution of this plan, the company recently reconstituted a new Board-of-Directors, a new management team and an array of strategic partnerships.

At its 49^th AGM which held on 21 November 2019, the company’s shareholders approved its  recapitalisation plan to meet the new regulatory capital requirements through (i) an equity capital raise via rights issue and/or private placement and ii) a business combination by way of merger or acquisition, which must all be completed by 30 June, 2020.

Mr. Ademola Salami, the company’s new Chief Financial Officer (CFO) while providing a progress update said: “Working with our Financial Advisers, the Board and Management of the company are already engaging with foreign and local investors that have shown interest in the company. High-level negotiations are on-going and we expect to secure substantive offers for investment in the coming weeks.”

In response to the situation regarding unpaid claims & outstanding customer benefits, the MD expressed regret and attributed the delay to the company’s large asset portfolio which is skewed towards fixed assets.

He however assured the audience that the company’s assets are more than sufficient to settle all its liabilities and that it has made significant progress towards liquidating some fixed assets to unlock cash and pay down all outstanding obligations soon..

He stated that Niger Insurance Plc has paid over N1.4bn to customers in the past nine months and used the opportunity to assure all others that their claims will be paid soonest. He thanked all of its customers for their patience, trust and understanding during this challenging period in its long and otherwise stellar history while reaffirming the company’s renewed sense of responsibility and commitment to excellence.

There is a growing sense of purpose at Niger Insurance Plc these days; it feels like a new dawn with management, staff and shareholders all working with passion and a common intent to write a great story in this new chapter of the company’s long and chequered history.