Managing Director, Universal Insurance Plc, Dr. Ben Ujoatunu, says the firm will soon conclude arrangements with major shareholders to meet the new capital base requirement through right issues before the end of the year.
Ujoatuonu said this at the April 2022 Edition of the Nigeria Council of Registered Insurance Brokers (NCRIB) Members’ Evening, sponsored by the insurer on Tuesday in Lagos.
According to News Agency of Nigeria (NAN), National Insurance Commission (NAICOM) had in 2020 mandated life insurance firms to meet a minimum paid-up capital of N8 billion, up from N2 billion while general insurance companies are expected to increase their paid-up capital to N10 billion, from the earlier N3 billion.
Composite insurance (life and non-life operators) were directed to recapitalise to N18 billion as against the previous N5 billion, while reinsurance businesses are now required to have a minimum capital of N20 billion from N10 billion obtainable in the past.
A court order restraining the commission from proceeding with it made the exercise been suspended.
Ujoatunu said that the insurance company had been trading with capital far excess the current N3 billion.
“With the introduction of the new capital regime, we just need just a little margin to meet the required level of N10 billion, ” he said.
According to him, the insurer also ensures that it meets its claims obligations as at when due.
Ujoatuonu said: “We have consistently delighted our customers with prompt settlement of claims and this is the major reason why we are in business.
“Our key strategy to grow business for this year is to expand our market. In pursuit of this strategy, we are opening up more branches in Uyo, Apapa and Kano.
“Apart from the core conventional insurance business, our retail operations have been fully developed and is anchored completely on technology.”
He explained that the company aims at developing the retail business which led to development of new products like Okada Pass, Shop Insurer, Driver Pass, School Fee Protection Plan, Kiddies Personal Accident Insurance, among others.
He further disclosed that in line with the the approval to transact Micro-Insurance, the insurance firm would soon unveil many more products that would address the insurance needs of the public.
Ujoatuonu urged brokers to continue to extend their businesses to the insurance firm, saying, “it is stronger, better and has built capacity to handle all risks”.
In his address,President, NCRIB, Rotimi Edu described Universal Insurance as a broker friendly company and lauded its excellent service delivery and sponsoring of the event.
He urged its members to take advantage of the collaboration between NCRIB and the Lagos Chamber of Commerce and Industry (LCCI) to achieve the deeper penetration of insurance it desired.
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