Nigeria Re restructuring impacts on firm’s growth in 2014

Nigeria Re, the country’s premier reinsurance company has begun to achieve greater stability and growth, which has reflected on the firm’s bottom line in 2014.

The firm had embarked on restructuring of its operations include service delivery, claims settlement and compliance on early returns to the industry regulator.

Isioma Chukwuma, managing director/CEO of the Company said Nigeria Reinsurance Corporation, has secured the approval of the National Insurance Commission (NAICOM) for its 2014 accounts.

This, she said, was contained in a letter dated 3rd July to Nigeria Re by the commission.

Chukwuma, who was speaking in a statement issued by the company, noted that the corporation, has in the last two years, met the NAICOM June 30th deadline for submission of accounts for insurance and reinsurance operators in the country.

According to her, this achievement reinforces the corporation’s strategy to be among the top rated and compliant companies in the industry.

Nigeria Re boss further stated that at the beginning of year 2014, the firm objectively reviewed her operations and set a goal that is encapsulated in one phrase, which is ‘to be a Profitable Global Player in the Reinsurance Market.’

She affirmed that the corporation is set out to achieve the goal by restructuring her operations, focusing on service delivery and more specifically on prompt settlement of claims, deepening existing clients’ relationship, improving on the firm’s visibility, monitoring sector challenges within the industry and delivering superior returns.

The approved accounts showed that Nigeria Re recorded an improvement in the Gross Premium Income of 18 percent from N629 million in year 2013 to N743 million in 2014.
The account further reveals a strong balance sheet figure of N18.86 billion. Claim settlement was given priority during the year as part of the overall strategy to clean up the books and satisfy its clients.

With the approval of the accounts and the rating in place, Lady Chukwuma said the corporation is set to soar.

Nigeria Reinsurance Corporation was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations on January 1st, 1978 as Nigeria’s flag reinsurer, wholly owned by the Government of the Federal Republic of Nigeria.

The purpose for the establishment of the Corporation was to stem the outflow of funds in form of reinsurance premiums, by accepting legal cession of all local insurance policies and writing inward international reinsurance businesses.

In line with the privatization policy of the Federal Government of Nigeria, the Corporation’s 51 percent equity was acquired in December 2002, by Reinsurance Acquisition Group – the Management buy-out vehicle, while the Government retained 49 percent interest. The former stake was later taken over by Jimoh Ibrahim who has since become the core investor.

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