Industrial and General Insurance Plc (IGI) has announced that it paid more than ₦1.8 billion in claims to policyholders over the past year, reaffirming its commitment to rebuilding public trust and repositioning itself as a major player in Nigeria’s insurance industry.
The announcement was made by the company’s Managing Director, Mr Akinlolu Akinyele, during the company’s consolidated 28th, 29th, 30th, and 31st Annual General Meetings (AGMs) held on Tuesday in Abuja. Akinyele emphasized that claim settlement is central to customer confidence in insurance services, noting that IGI aims to increase the figure in 2024 as part of its strategy for sustainable growth.
“We know that claim payment is one of the opportunities you can give to the public to explain why insurance is relevant,” he said. “Indeed, we are committed to paying more. In fact, in 2024, your company paid over ₦1.8 billion in claims. We are continuing this year with a target to increase that number further because we believe that paying off claims is the only way we can guarantee sustainable business.”
Mr Akinyele added that IGI’s long history and experience give it an advantage in navigating challenges and regaining its footing in the Nigerian financial services space. The company, which was once one of Nigeria’s top insurers, is working to reestablish its presence and relevance in the market.
As part of these efforts, IGI has rejoined the Nigerian Insurers Association (NIA) after a period of absence. Akinyele described this move as strategic, saying, “We worked tirelessly since we came on board to ensure that we identify with the association. We believe that the only way we can make a meaningful impact in the economy and in the industry is to join the association, so we are happy to be back.”
On financial pressures, the MD acknowledged that management expenses have risen significantly due to inflation and other economic factors. However, he assured shareholders that the board is actively working to control operational costs while exploring new revenue streams.
IGI is also increasing its oversight of its subsidiary operations in Uganda and The Gambia, part of a broader strategy to boost group performance and revenue.
Touching on the anticipated insurance industry recapitalisation drive, Mr Akinyele said the company is already exploring options to strengthen its capital base in preparation for new regulatory requirements.
“We are mindful of the capital raise, particularly for banks, which ultimately will go to insurance,” he said. “We can confirm to you that the board is seriously thinking about it, and we are exploring all options. We are mindful of the capital position, and we are working to ensure that whatever the capital position is announced, we will be able to meet the target.”
Shareholders welcomed the board’s performance, especially in terms of improved claims settlement, which they identified as a key area of concern in the past. However, they also raised questions about rising management costs and the status of foreign operations.
Mr Williams Adebayo, President of the Greenwich Shareholders Association, called for continued support for IGI’s board, warning that the insurance sector faces growing competition from the banking industry. He also urged regulators to protect insurance firms from marginalisation.
“This is a period where you see the banking institution competing with the insurance sector,” Adebayo said. “The banking indices alone are enough to snatch away customers from insurance companies. That is why we must support the board and give it the balance it needs to succeed.”
Ambassador Nuhu Bamalli, IGI’s Board Chairman, also appealed for continued shareholder support and called on regulators to create a level playing field between banks and insurance companies to prevent industry imbalance.
During the meeting, shareholders approved the re-election of retiring directors, the appointment of auditors, and reviewed the audited financial statements for 2019, 2020, 2021, and 2022.
Founded in 1991, Industrial and General Insurance Plc offers both life and general insurance to individuals and businesses. IGI became the first private Nigerian insurance firm to hit ₦1 billion in premium income just four years after its establishment. The company maintains a presence in Uganda, The Gambia, and previously Rwanda, highlighting its continental reach.
