We will recapitalize, Unitrust Insurance MD/CEO assures shareholders, customers
Thes Managing Director/Chief Executive Officer of Unitrust Insurance Company Limited, Mr. John Ijerheime,has assured the company’s shareholders and customers of the company’s ability to scale through the ongoing recapitalization exercise.
Mr Mr. John Ijerheime said the company is 67% of the N10 billion required by the National Insurance Commission (NAICOM) for insurance companies under general business class.
Mr Ijerheime gave the assurance while responding to questions from journalists during a virtual media parley with insurance and pension correspondents recently.
He noted that although Unitrust Insurance Company Limited can stand alone but the company is currently discussing with shareholders for a possible business combination with other experienced companies to form a bigger company.
“As I said, we are 67% of the N10 billion required by NAICOM. I want to assure all our clients that we will recapitalize. There’s no need for fear. Unitrust will stand. In the past Unitrust has always stand alone during recapitalization.
“What we are also discussing with our shareholders is may be we should get in some other companies to join us so that we can form a bigger company because the bigger the better for us but for recapitalization, we will meet It,” Mr Ijerheime emphasized.
Mr Ijerheime who appealed to insuring public to pay reasonable premium so that insurance companies can build enough reserves to pay claims when such need arises, also warned underwriters against rate-cutting.
“With my experience in the industry, l have come across some members of the public that believe that by charging me the premium that is unreasonable, in event of a claim, he might be unreasonable with me. If people can follow that – if you pay the premium, in event of a claim, insurance companies will be there to meet their obligations.
“For insurance underwriters, like the popular saying: what goes around, comes around – if you undercut premium, you will not be able to build enough reserves, if you are not building enough reserves, in event of a claim, there will be no funds for you to pay the claim.
“It’s going to be everybody’s responsibility – insurance companies charge the right premium, and the insuring public will pay and they’ll have the benefit of getting their claims when the need arises.
“If insurance companies are funny, society help them, encourage them to behave like that. Let’s get to pay the agreed premium so that insurance companies will have the funds to meet their obligations.
“For insurance companies, l think we should do away with cash underwriting. We are only concern with the cash even when we know that we will not be able to meet our obligations in event of a claim. I think we should stop it. With the post recapitalization, all these will become things of the past because you will have to justify every risk you underwrite,” Mr.Ijerheime said.
