Nicon Insurance, one of the top insurance firms in Nigeria, is reportedly selling N20 billion ($100 million) worth of its assets in a move to meet the insurer’s financial obligations and convert into cash assets that are no longer useful to the company.
In an address to the members of the Nigerian Council of Registered Insurance Brokers (NCRIB), Nicon Insurance Managing Director Bayode Samuel announced that N10 billion ($50 million) of the company’s assets will be disposed before December of this year while the other N10 billion will be sold later.
The decision to dispose of the assets came after the federal government-owned insurer found out that the said assets were no longer useful to the company.
Converting the assets into cash will also allow Nicon Insurance to meet some of its obligations, including the payment of outstanding claims to its clients. The company currently has an outstanding claims of N466 million (USD2.34).
“We will use it to expand our operations get first hand IT, pay all outstanding claims and commissions, improve staff welfare, buy operational assets like new vehicles and new operational issues, those are the things needed by modern insurance companies that is responsive to clients need; so it will help you to respond almost immediately to your clients need,” Samuel said.