Connect with us


Niger Insurance’s financial struggles may compel NAICOM to revoke its operational license



Amid poor financial return by the management of Niger Insurance, the company risks losing its operational license as National Insurance Commission (NAICOM) demands answers.

NAICOM wrote to Niger Insurance on March 31, 2022, giving the company 30 days period to convince NAICOM and the Ministry of Finance about its issues relating to operation.

Niger Insurance financial mess

The management of the insurer failed to stop Niger Insurance’s loses in 2021, as it rose from the N2.09 billion loss recorded during COVID-19 year (2020), to N2.63 billion loss last year.

It’s gross premium written for 2021 also dwindled by half to N515.8 million, significantly below the N1.03 billion reported during the corresponding period of 2020.

In the same vein, the gross premium income dipped to N458.9 million last year, as the management failed to recover half of the income recorded a year before, which is N1.08 billion.

Niger Insurance financial struggle in the Insurance market is also experienced in the capital market, where investors have been avoiding the company’s stock like fleas.

Investors holding Niger Insurance shares have seen their investment sucked dry by the bears within the last four years, as the value of the firm’s stock plunged from N0.67kobo/2019 to now trade at N0.20kobo per share.

During this period, Niger Insurance market capitalisation has dwindled from N5.18 billion to N1.54 billion, losing N3.63 billion in the process.

Read also: Niger Insurance, Briscoe among top gainers as Nigeria’s capital market stabilises after bearish run

This further reflects the financial struggles of Niger Insurance, as both the insurance market and the capital market are distancing themselves from the company led by CEO, Edwin Igbiti.

30 days grace to avoid losing operational license

With the financial mess weighing on the management of Niger Insurance, they now have NAICOM to deal with, to navigate the storm threatening a fatal blow on Niger’s sinking ship.

Disclosing a partial content of the letter from NAICOM demanding an explanation on why the regulator shouldn’t revoke its registration certificate, “Specifically, the letter grants the Company a 30 day period from the date of the receipt, to appeal the intention and show cause to NAICOM, the Minister of Finance, Budget, and National Planning, why the certificate should not be withdrawn.

“The Board of Directors and Management of the Company are working to present a convincing position to both NAICOM and the Minister of Finance, Budget, and National Planning that the operational issues mentioned in the letter are being addressed and the withdrawal of the registration certificate would not be necessary.

“Having reviewed the Company’s current operational levels vis a vis the content of the letter, the Company is very optimistic that the intention to withdraw the registration certificate will be rescinded, upon presentation of facts on the issues raised and the current position of the Company.

“The Company therefore urges various stakeholders ranging from shareholders, customers, and general public to continue to transact their business with us in the usual manner as it is certain that the issues surrounding the withdrawal would be resolved very soon.” the said in a statement released on Friday.

However, the company’s financial statements is not convincing to the eyes, and not encouraging enough to lure investors towards parting with their money to invest in Niger’s stock.

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Click to comment

Leave a Reply

Your email address will not be published.

twenty − eleven =