UnityKapital assures shareholders of seamless service delivery
This was disclosed in Lagos at a meeting held in Lagos, with news men.Oluyemi, described the company as excellently healthy and gave details of the company’s financial position for the year ended December 31, 2015 as approved by the industry’s regulator, the National Insurance Commission (NAICOM).
He said the company is being repositioned to compete effectively with other bigger players in the industry, adding that he is mandated by the board to see to the growth of the company as well as take the company to the next level in terms of strategy, the operations, the vision and the outlook.
According to him, “I think the mandate the board has given to me on my assumption of duty on October 16, 2016, is to see to the growth of the company by applying all means and mechanisms available to us. Secondly, to take the company to another level in terms of strategy, operations, vision and the outlook in order to compete effectively among other bigger players in the industry.”
Oluyemi, said the company is presently at its turning point, adding that plans for a change in the ownership of the company are ongoing.
“We have come to a point where we have a new mandate from the new board. We are at the turning point in the history of the company. The changes even regarding the ownership of the company are ongoing right now. It is evolutional process and I think we are in the right track.
NAICOM in a letter signed by N.O Opara, Director (Supervision) for the Commissioner for Insurance which approved the company’s year 2015 financial statement dated April 6 2016 said the commission “has no objection to the publication or your audited financial statements for the year ended 31st December, 2015, as submitted.
Approval is granted after a confirmation that they have substantially complied with our regulatory requirements”.The highlights of the financial statement are: Total Assets: N10,728,219,000; Total Liabilities: N1,344,359,000; Shareholders’ Fund: N9,383,860; Insurance Contract Liabilities:N855,893,000; Gross Premium Written: N2,651,717,000; Gross Premium Income: N2,664,534,000; Net Claims Expenses: N428,896,000; Underwriting Expenses: N648619,000; Underwriting Result: N1,043,957,000; Net Operating Income: N411,081,000; Management Expenses: N1,162,342,000; Profit (Loss) after tax: N340,503,000 and Solvency Margin: N9,360,939,000.”
Oluyemi said between January and November this year, the company has paid claims amounting to N597 million.“I will say that financially the company is in good health and the mandate for us and the rest of the management team from the board is to take the company even to a bigger financial services company. The figures above speak for itself”.
On channels of distribution, he said “Be it as it may, we are going to look at several new channels – direct and electronic, we are going to partner with associations and cooperative societies; in brokers business, we will also be there. Within a few years, we will settle down and concentrate fully on the areas of our strength. We are working on the area of direct sales and electronic distribution channels. New skills are required to enter those areas and we are acquiring those skills.
On taking insurance to the grassroots, he said “There are still a lot of areas. I can’t run after over 170 million Nigerians. Cost wise, it is not a wise thing to do. If you are looking for mass market, you have to find a means of cutting your cost. In short, we will find the cheapest means of getting to the mass market and what is the cheapest means? Electronic.
“I can’t be knocking at every door and that is why I said at the beginning that we want to create IT capabilities. Five thousand, ten thousand may look small but when you multiply ten thousand by ten thousand, it runs into billions. You can’t run after ten thousand people profitably with your bag in your hand and your shoes in your feet. You need additional skill to go into electronic distribution.”
On Bancassurance, he said like other players, the company is waiting for the clarification of the situation by NAICOM, adding that they will partner with banks and other licenced companies and institutions in order to expand its distribution channels.
On Risk Based Supervision and Corporate Governance, Mr. Oluyemi said since these are regulatory frameworks aimed at the betterment of the industry, UnityKapital welcomes the development.
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