The Nicon Insurance Ltd, patly owned by Jimoh Ibrahim, Group Chief Executive of Energy Group, is to start the sale of N20 billion worth of its assets to meet financial obligations and regain its lost position.
Managing Director of the company, Mr. Bayode Samuel who disclosed this at the members’ evening of the Nigerian Council of Registered Insurance Brokers (NCRIB) said the company would dispose of N10 billion worth of assets between now and December this year while the remaining ones would be sold later.
He said the hitherto federal government owned company had decided to dispose of the assets and convert them to cash because some of them are no longer useful to the company.
According to him, the proceed would be used to meet some of the company’s obligations such as payment of outstanding claims to its clients ahead of regulator’s deadline of September 30th and payment of commission to brokers.
He said the company currently has outstanding claims of N466 million.
“If I have asset that is not yielding income and I don’t need it in my book, the best thing is to turn it to cash and make income from that,” he stressed.
On what the company intends to do with the proceed from the sale of the assets, the Nicon Insurance boss said: “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.
Speaking on how to clear the outstanding claims owed by the company Bayode said: “Our outstanding claims is N466million, so if I sell the one in broad street for N 700 million , it will take care of that, if I sell the one at Aso drive at N750 million it will take care of that and I have a lot of that listed for sell I will not fail to sell it I will meet the September 30th deadline.”
He spoke on the existing relationship between the company and the regulator especially in terms of meeting deadline on submission of financial report saying, “Immediately I took over I discovered that there are outstanding account of 2012, 2013 and 2014 so I paid all the outstanding fees owed to auditors , got the accounts submitted got 2012 , and 2013 approved.”
He said before the end of the year, he will ensure that 2014 account is approved.
Speaking on the present state of the company, which according to him, the present management has the mandate to turn around, Bayode said that “The new Nicon is going to be a company that is solid in structures solid in personnel, good in processes, with supported processes that will be responsive to clients’ needs.”
He said the new management will ensure that the company bounces back to fore front of insurance industry as a company that is responsive to its stakeholders.
He insisted that currently, the company is number one in asset, adding that though the premium income has dropped to N2 billion, the new management has projected that by the year 2016, the premium income will go up to N6 billion.