Lagos: Insurance shareholders have called for increased penetration, improved dividends, stronger corporate governance, and enhanced regulatory supervision following the sector’s recapitalisation. The shareholder associations made the call in interviews with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, they said the fresh capital injected into insurance companies should translate into stronger business performance, better investor returns, and greater economic contribution. NAN reports that 50 insurance and reinsurance companies met the new minimum capital requirements following the recapitalisation exercise. The requirements are N10 billion for life insurers, N15 billion for non-life insurers, N25 billion for composite insurers, and N35 billion for reinsurers.
Mr. Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), said insurance penetration should rise significantly from its current one per cent. Igbrude urged insurers to leverage th
eir stronger capital base to expand underwriting capacity, develop products, and reach more Nigerians outside the formal insurance market. He also said shareholders expected improved returns on their investments, stressing that the era of token dividends should end.
Igbrude emphasized that increased business and insurance penetration would generate more revenue for insurers, resulting in improved profitability and stronger shareholder returns. He noted that if insurers do more business and increase penetration, it would lead to better profitability and returns. He stressed that insurers could no longer justify poor returns given their stronger capital positions, which should enable them to expand operations and generate better earnings.
Igbrude also urged the National Insurance Commission (NAICOM) to intensify supervision of the industry following the completion of recapitalisation. He stated that stronger capitalisation would expand insurers’ operations, requiring closer regulatory monitoring to ensure com
panies were properly managed. He called for enhanced corporate governance and collaboration among insurance operators, employees, and other stakeholders to strengthen the industry and increase its contribution to Nigeria’s Gross Domestic Product.
Similarly, Mr. Boniface Okezie, Chairman of the Progressive Shareholders Association of Nigeria (PSAN), urged regulators and operators to prioritize shareholder protection. Okezie said stronger protection was necessary to restore investor confidence and attract more capital into the insurance market. He noted that poor dividend records had discouraged some shareholders from investing in insurance stocks, while some investors had funds trapped in companies that ceased operations.
Okezie called for stronger measures to protect shareholders and ensure recapitalisation benefits extended beyond strengthening insurers’ balance sheets. He emphasized that the exercise should ultimately produce improved business performance, higher dividends, stronger share prices, and incr
eased confidence in insurance stocks.