Niger Insurance Plc has confirmed that the company received a letter from the insurance industry regulator, National Insurance Commission (NAICOM) expressing its intention to withdraw the Company’s registration certificate on 31st March 2022.
Meanwhile, the insurer emphasized that the letter received is an expression of NAICOM’s intention to withdraw the certificate, adding that it is premised on some operational matters for which the company has been given time to explain its position and appeal the withdrawal.
According to the insurer in a disclosure filed to the NGX and signed by Tolg Nominees, the company secretary, the letter grants the Company a 30 day period from the date of the receipt, to appeal the intention and show cause to NAICOM as well as the Minister of Finance why the certificate should not be withdrawn.
NAICOM recently issued a 30 days notice to the board of Standard Alliance Insurance Plc and Niger Insurance Plc disclosing its intention to cancel their certificate of registration.
The notice issued to both firms on the 29th and 30th of March respectively was on the back of not being able to meet up with operations as the companies have in recent times delivered unimpressive financial reports.
What Niger Insurance is saying
Reacting to NAICOM’s notice, Niger Insurance said in its statement, “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and show cause to NAICOM, the Minister of Finance, Budget, and National Planning, why the certificate should not be withdrawn.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of the letter, the Company is very optimistic that the intention to withdraw the registration certificate will be rescinded, upon presentation of facts on the issues raised and the current position of the Company.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.”
What you should know
Niger Insurance reported a loss of N2.7 billion in the year 2021 with a gross premium written at N515 million and a Gross premium Income of N459 million.
The company’s share currently trades at N0.2 while the market capitalization trades stand at N1.5 billion as of Friday 8th 2022.
Earlier, the Nigerian Insurers Association (NIA) expelled Industrial and General Insurance Company Limited (IGI), Niger Insurance Plc and Standard Alliance Insurance Plc, for failing to deliver claims to policyholders as expected last year.
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