From NGOZI Onyeakusi, Lagos
Leadway Assurance Company Limited, has disclosed that going by its shareholders funds in excess N40bn, it is qualified to play as Tier 1 composite insurer against N15 billion required.
By this Leadway can underwrite all risks in the country.
The Managing Director/Chief Executive Officer, Mr Oye Hassan-Odukale, made the disclosure while commending the National Insurance Commission for the introduction of Tier-Based Minimum Solvency Requirement Structure in the insurance industry.
According to him, “Using Leadway as an example, I have the pleasure of reporting that we fall within the Tier 1 bucket as we currently have shareholders’ funds value in excess of N40bn compared to N15bn required for a Tier 1 composite insurer.
“A number of other Nigerian insurers are also within this tier. We believe this TBMSR is good for our industry as it helps to promote the financial health of insurers and ultimately consumer confidence.”
The Leadway boss said that the new regulation would help to restructure the market in a way that insurers could choose which part of the consumer segment (retail, commercial or industrial) was best served based on the capital fund that it held or was able to deploy.
With this restructuring, he added, insurers did not have to be compelled to increase capital to underwrite risks that could stress their capital without delivering commensurate returns to capital providers/shareholders.