The Commissioner for Insurance (CFI), Mr. Sunday Thomas, disclosed this at a media retreat organised by the Commission in Lagos at the weekend saying that most of the insurance firms currently regarded as weak are not actually weak in the real sense of it considering the value of assets, we have many in the real estate sector.
From left: Director Policy and Regulation, National Insurance Commission (NAICOM), Mr Pius Agboola; Deputy Commissioner, Technical, Sabiu Bello Abubakar; Thomas; Director, Research, Statistics and Publication, Alhaji Adamu Balanti; and Director Inspectorate, Mr Barineka Thomas during the seminar in Lagos
Commissioner noted that the starting point of the reform was to return operating firms to liquidity status by ensuring that they restructure their balance sheets so that those that currently rely on assets that they can hardly turn to cash would effect a major turnaround in their operations and run their business based on cash flow instead of fixed assets.
Thomas said their actual problem is their inability to quickly turn those assets into cash and continue to discharge their responsibilities to the public
NAICOM Boss said it has already started this through expertise advice on owners of various insurance firms who have in the past exceeded the maximum level of investment in real estate and are now facing cash crunch and could not easily turn their assets to cash to keep afloat in business.
He further said it is strictly guiding operators to ensure that going forward none exceeds the 25 per cent maximum investment in real estate sector.