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| Ifaturoti |
Chuks Udo Okonta
Insurance operators have been charged to
raise their stakes to enable investors maximize better returns on their equity investments.
Former Managing Director Crystalife Assurance Plc (Now ARM life), Mrs Seyi Ifaturoti, disclosed this at an event organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos. She called on her colleagues to refrain from unhealthy business competitions, innovates their practices to enable investors recoup their investments.
She said many investors who invested in the insurance
sector, with the hope that it is the best investment haven, are lamenting as
they have not been able to maximise returns from their investments.
She expressed worry over the industry’s inability to yield
good returns on equity, adding that it is high time operators begin to examine
their ways, so as to raise public confidence which will impact the prices of
the industry’s stocks, patronage and profitability.
Director Supervision National Insurance
Commission (NAICOM) Nicholas Opara, said issues concerning profitability of
insurance companies in Nigeria are of great importance to both the commission
and the shareholders, adding that while shareholders are interested in dividend
payout which invariably impact on the prices of insurance stock, the regulator
is interested in the growth and stability of shareholders’ funds because it
serves as a buffer (security) for the policyholders’ funds.
He called on insurers to address the issues of high percentage of premium applied to pay over-bloated expenses resulting from management inefficiency.
He urged Companies to curtail high
management expenses and in extreme cases stopped from embarking on certain
activities without approval of the commission.
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