JUST IN: NAICOM Revokes Licenses Of Niger Insurance, Standard Alliance Insurance

The National Insurance Commission, on Tuesday, cancelled the Certificates of Registration of Niger Insurance Plc and Standard Alliance Insurance Plc.

The apex regulator of the insurance industry revealed this in a statement signed by the Head, Corporate Communications and Market Development, ‘Rasaaq ‘Salami.

Advertisement

Following the cancellation of the license, the Commission said in the statement that it has appointed Sanya, Ogunkuade Esq as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq as the Receiver/Liquidator for Standard Alliance Insurance Plc.

The statement reads, “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission, NAICOM has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June, 2022.

“Consequently, the Commission has appointed Sanya, Ogunkuade Esq of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos as the Receiver/Liquidator for Standard Alliance Insurance Plc.

“All stakeholders are advised to forward their enquiries to the respective Receiver/Liquidator for each company for their necessary action.

Advertisement

“The Commission assures all stakeholders of the safety and protection of their interests.”

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

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

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

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

Advertisement

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

Investors holding Niger Insurance shares have seen their investment dropped 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 had dwindled from N5.18bn to N1.54bn, losing N3.63bn in the process.

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

Leave a comment

Advertisement