The National Insurance Commission (NAICOM) on Thursday took over UNIC Insurance Plc.
The take over is coming on the heels of the Commission’s drive to sanitise the sector and ensure safety of policyholders investment in the sector.
Although, UNIC Insurance has been unable to pay claims to policyholders and had weak financial result, the Commission is yet to state its reasons for taking over the firm.
Sources within the sector said the board of the firm has been sacked while a four man interim board to pilot the affairs of the company for the next six months has been contituted.
The interim board is chaired by NAICOM’s former Director of Finance and Accounts, Chief Samuel Ordu while Theophilus Eke will serve as its interim Managing Director. Other members are Ifeyinwa Ann Momah and Nicholas Shaiyen.
The interim board has an initial period of six months to do a forensic audit on the firm’s financial position as well as point out the corporate governance failures observed in the course of reviewing the financial statements of the company.
It was also learnt that the Commission is prepared to intervene in more companies.
Few days ago, the Commissioner for Insurance, Mohammed Kari said there is an urgent need for consolidation between the firms.
He said aside the underwriters, all other insurance operators especially brokers would also need to consolidate.
Kari said the resolution to consolidate was reached and agreed upon by the regulator and operators at the Insurers Retreat held recently in Abeokuta, Ogun State.
He further advised operators who are seeking or may want to seek for a new operating license to acquire some of the existing weak companies.
He said consolidation will enable the companies to strengthen themselves financially.
He stressed that the Commission found that out of 27 companies, only 6 or 7 have paid dividend in last 3 years.
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