Industrial and General Insurance Plc has said that it is exploring multiple options to strengthen its capital base ahead of the anticipated recapitalisation of the insurance sector.
The company’s Managing Director, Mr Akinlolu Akinyele, disclosed this during the firm’s consolidated 28th, 29th, 30th, and 31st Annual General Meeting held on Tuesday in Abuja.
He said the board was committed to meeting any new regulatory capital requirements once announced by regulatory authorities.
“We are mindful about the capital raise, particularly for banks, which ultimately will affect insurance. We can confirm that the board is seriously thinking about it, and we are exploring all options,” Akinyele said.
He added, “We know our capital position, and we are working to ensure that whatever the capital requirement is, we will be able to meet the target.”
Akinyele also revealed that it paid over N1.8bn in insurance claims to policyholders over the past year, with a target to exceed that figure in 2025.
According to the MD, the payout reflects the company’s renewed focus on rebuilding public trust and repositioning for long-term growth in the industry.
“We know that claim payment is one of the opportunities you can give to the public to explain why insurance is relevant. Indeed, we are committed to paying more. In fact, in 2024, your company paid over N1.8 bn in claims.
“We were committed to continue to pay this year. This year, our target is to increase that number further because we believe that paying off claims is the only way we can guarantee sustainable business,” the MD told shareholders.
He stressed that claim settlement remains the bedrock of trust in the insurance industry, adding that the company is leveraging its decades of experience to reaffirm its relevance in the Nigerian financial ecosystem.
The MD also disclosed that the company had returned to the Nigerian Insurers Association after a period of absence, describing the move as a strategic step to re-integrate with the industry’s mainstream.
“We worked tirelessly since we came on board to ensure that we identify with the association,” he said. “We believe that the only way we can make a meaningful impact in the economy and the industry is to join the association, so we are happy to be back.”
On the rising operational costs, the MD acknowledged that management expenses had risen sharply, but assured stakeholders that the board was taking steps to manage the company’s cost profile more effectively.
“As you know, inflation is rising. But we are mindful of that. One of the things that we are doing is to ensure that we manage our costs effectively and also focus on growing the business,” he said.
He added that the company was intensifying oversight on its subsidiaries in Uganda and The Gambia, as part of a broader strategy to unlock fresh revenue lines and reinforce group-wide performance.
Meanwhile, shareholders commended the board for its renewed performance, particularly the improvement in claims settlement, which they said had been a key concern in the past. They, however, raised questions about the company’s rising management costs and the performance of its foreign subsidiaries.
The President of the Greenwich Shareholders Association, Williams Adebayo, urged support for the IGI board, noting that the insurance sector is under pressure as banks increasingly encroach on its customer base.
He also called for regulatory protection to prevent insurance companies from being driven into extinction, while commending the board for its performance despite the difficult environment.
