A report by B&FT, said the move has paved the way for the eventual liquidation and closure of the company’s operations in the country.
Information available indicates that the move by the industry regulator to close down IGI’s operations follows cash flow insolvency issues and operational difficulties faced by the company, which has made it difficult to settle and pay claims as they fall due.
A source from the company said, IGI has long indicated its resolve to divest from Ghana and allows NIC Ghana to take over the company.
He said the
decision to divest is as a result of irreconcilable differences between the
company and the majority shareholders and its local Ghanaian directors.
“But the point must be made that the company
is not on liquidation at this moment. The
court has only approved administrators for the companies for a period of six
months, as agreed with NIC in Ghana, whilst the shareholders are resolving
their issues,” he said.
B&FT learnt the company’s financial situation has put the
firm’s policyholders in a fix.
It was gathered that the commercial court on the recommendation of the NIC has appointed President of the Ghana Insurance Brokers Association, Mr. Asante Marfo-Ahenkorah, and the Managing Director of Claim Limited, Daniel Afriyie, as administrators of the life and general insurance business of the troubled company in line with procedures to liquidate the assets of IGI after December this year.
The administrators have been a given six-month duration to complete their work, and the cost that will be incurred through the administrators’ activities will be borne by the NIC and later reimbursed by IGI as instructed by the court.
B&FT enquiries have revealed that all the general insurance policies held by the company’s clients have expired, except life insurance policyholders who will be affected by the liquidation process. However, plans are being fashioned by the NIC, to transfer them to other insurance firms that are robust enough and interested to accept the life insurance business of IGI to enable clients to continue being served.
IGI, a Nigerian-controlled insurance firm with particular focus on special risks such as oil and energy, engineering, aviation, and industrial risk management entered the Ghanaian market in 2008 when it acquired the operations of Network Assurance as part of its Pan-African expansion drive.
The company on entering the market bought several shares of the publicly-traded SIC Insurance Company.
However, IGI’s underwriting profit has been awful and recorded several losses -- drawing concern about the company’s entry strategy and focus. Adding to the company’s woes has been infighting among the directors, which stalled recapitalisation plans.
The NIC, whose mandate under the Insurance Act 2006 (Act 724) is to ensure effective administration, supervision, regulation, monitoring and control of the business of insurance to protect the insurance industry and policyholders, said its enforcement action against IGI has been necessitated by the company’s violations of various provisions in the Insurance Act.
The Administrators appointed by the insurance regulator are required to proffer recommendation to the NIC and lead court action against IGI Ghana Limited in a bid to protect the interests of policyholders, customers and the public; and preserve and prevent IGI from transferring, disposing of or dealing with any of its properties.
In this regard, the administrators are expected to propose the official liquidation of IGI as well as any other action that they may consider appropriate.
However, the administrators are not allowed to issue or enter into any insurance contracts except with the leave of the court and the NIC.
It was gathered that the commercial court on the recommendation of the NIC has appointed President of the Ghana Insurance Brokers Association, Mr. Asante Marfo-Ahenkorah, and the Managing Director of Claim Limited, Daniel Afriyie, as administrators of the life and general insurance business of the troubled company in line with procedures to liquidate the assets of IGI after December this year.
The administrators have been a given six-month duration to complete their work, and the cost that will be incurred through the administrators’ activities will be borne by the NIC and later reimbursed by IGI as instructed by the court.
B&FT enquiries have revealed that all the general insurance policies held by the company’s clients have expired, except life insurance policyholders who will be affected by the liquidation process. However, plans are being fashioned by the NIC, to transfer them to other insurance firms that are robust enough and interested to accept the life insurance business of IGI to enable clients to continue being served.
IGI, a Nigerian-controlled insurance firm with particular focus on special risks such as oil and energy, engineering, aviation, and industrial risk management entered the Ghanaian market in 2008 when it acquired the operations of Network Assurance as part of its Pan-African expansion drive.
The company on entering the market bought several shares of the publicly-traded SIC Insurance Company.
However, IGI’s underwriting profit has been awful and recorded several losses -- drawing concern about the company’s entry strategy and focus. Adding to the company’s woes has been infighting among the directors, which stalled recapitalisation plans.
The NIC, whose mandate under the Insurance Act 2006 (Act 724) is to ensure effective administration, supervision, regulation, monitoring and control of the business of insurance to protect the insurance industry and policyholders, said its enforcement action against IGI has been necessitated by the company’s violations of various provisions in the Insurance Act.
The Administrators appointed by the insurance regulator are required to proffer recommendation to the NIC and lead court action against IGI Ghana Limited in a bid to protect the interests of policyholders, customers and the public; and preserve and prevent IGI from transferring, disposing of or dealing with any of its properties.
In this regard, the administrators are expected to propose the official liquidation of IGI as well as any other action that they may consider appropriate.
However, the administrators are not allowed to issue or enter into any insurance contracts except with the leave of the court and the NIC.
No comments:
Post a Comment