New NICON Insurance bracing for market competition, service delivery
History of the Nigerian insurance industry cannot be complete without a mention of NICON Insurance, the then flagship of the country’s underwriting market, whose contribution to economy, human capital development and risk management capacity brought Nigeria to limelight in the African insurance market. While its privatisation a few years ago and subsequent lost of market share took the Company miles back, there are strong indications given fresh acceptance by insurance brokers who control over 70 percent business in the industry that NICON is in the verge of making a ‘come back.’ Modestus Anaesoronye in this report looks at the new management team, plans and strategies, market reaction as Samuel Bayode, the new Managing Director represents the insurance giant.
The New NICON
Sitting on over N56 billion worth of assets, perhaps the biggest that has been accounted for by any insurance company in the market and 40 branches as well as six regional offices across the country, NICON Insurance Limited is bracing for a return, not only to regain market position but for a competitive service delivery.
Its new management team, led by Bayode Samuel, an astute professional and chartered Insurer of over 30 years experience is focused on repositioning the company to take back its position in the industry and meet all obligations.
His assurances on the new NICON stems from what he described as total support and freehand by the board to carry out a restructuring of not only its investment portfolio but other operations that would enable the company play actively in the market.
“We have the approval of the board to dispose part of our assets to the tune of N20 billion, with N10 billion before the end of the year.”
This will enable us make quality investments, increase our liquidity to meet claims obligation, expand operations, acquire IT infrastructure and increase our working capital, the CEO said.
“Currently, we have swung into serious action with concerted efforts aimed at rebranding the company. This has become pertinent due to the fact that every establishment over time, carries out reforms that will reposition the organization in the comity of equals as wells as clients.
“We have, since the inception of my tenure, carried out radical structural and human rebranding exercises with the intent of placing the company on a balanced pedestal.
We have engaged highly cerebral staff to drive our new strategic direction”
He said in the effort to reposition the company, the management has decided to extend its strategies to 6 regional and 40 branch offices across Nigeria for optimal and superior performance.
From January this year to date, we have paid a total claim of over N138.11 million, made up of N50.98 million in general business and N87.13 million in life and pensions businesses.”
Relationship with brokers
Part of the managements focus at the moment is to realign with the brokers whose partnership is critical in moving the company forward.
He said the past few years have been most challenging and harrowing with resultant decline in our fortunes; however, we have come to seek your hands of fellowship in reversing this trend and promoting the business of insurance in Nigeria to the delight of all.
On the Company’s indebtedness to brokers including claims and commissions put at about N465 million, Bayode assured that all of that would be settled soon. We have brought our outstanding from over N2 billion to about N465 million now, and with the level of cash we are expecting from part of our assets, we will not have any problem clearing it.
This was the excitement of brokers when he addressed them at their recent Members Evening in Lagos, a moment that once again endeared NICON to the brokerage fraternity.
Market Reaction
Ayodapo Shoderu, president, Nigerian Council of Registered Insurance Brokers said with the coming of Samuel Bayode, it look to us in NCRIB that a serious person who wants to do his job as a professional insurer and leave his name in gold has come to resurrect NICON.
He is trying his best given the promises he has made and what he has one within the short time he took over management of the company, and we have asked our members to patronise them.
“If they continue in the way they are going, there is hope for NICON regaining its lost glory, because they have what it takes in terms of asset to reposition and play competitively.
I will only advice that the board should give him free hand to run the company and reposition the institution, while keeping an eye on him and supporting him.
For Gabriel Owope, director, SIB Insurance Brokers “NICON is well known to us and has always been with us. They are coming back and to have begun with reconciling with the market and brokers in particular, it’s a good strategy. Given the integrity and character of Samuel Bayode in the industry, we know it is a new era for NICON. We only hope that board will give him the needed support. They have got the strength and what it takes to compete effectively, even when you consider the value of their total assets, he said.
Femi Ifaturoti of Zebra Insurance Brokers said issues of prompt settlement of claims is important to us insurance brokers and that is where the new management has anchored his promise. “We shall support him having known his pedigree in the market and looking forward to a quality relationship.”
Strategy
The plan is to do a market mop-up as much as possible. Also we intend to claim the foremost status of the Corporation by going into alliances with as many institutions as possible, both local and foreign. A perfect example is our road map to synergize with the micro finance institutions in Nigeria to insure the exposure of both the MFI’s and the facilities granted to low income earners who struggles to pay back. We’ll insure the loan and the individuals involved in the event of any eventualities and likely default. Possibly, we will extend business financial trainings on how to run a successful business with loans and other people’s money granted to them by the MFI’s.