The National Insurance Commission (NAICOM) has okayed the ongoing plan by the Industrial and General Insurance (IGI) to convert part of its long-term assets to liquidity.
With the approval, IGI can now restructure its massive investment in real estate and subsidiaries, amounting to billions of naira, by offering them for sale and ploughing back the proceeds into its day-to-day operations.
According to a statement by the company, IGI is opting for asset restructuring as part of measures to raise liquidity for the repositioning of the company in the core business of insurance.
The statement said: “We launched a strategic transformation policy in 2014 which is running well with great expectations for the future. The company needs money to boost its liquidity and enhance its capacity to meet all obligations promptly, including payment of claims.”
Already, the company has concluded plans to divest from under-performing subsidiaries anywhere they are, with a view to concentrating fully on insurance business in Nigeria.’’
“IGI remains the most endowed insurer in asset base and we want to leverage that strength to restore our leadership in industry. Some of the properties are already up for sale,” the statement added.
The company, which paid over N3 billion claims to policyholders between 2014 and last year, listed its priorities as meeting obligations promptly, maintaining corporate integrity and delighting the customer and other stakeholders.