Shareholders fret over demand for foreign loans by insurance companies

Shareholders have called on National Insurance Commission, NAICOM to stop some of the Nigerian insurance companies who are in the habit of seeking foreign loans rather than looking inward. The shareholders argued that incessant foreign loans by some of the insurance companies have negative impact on the balance sheet of companies and could jeopardise indigenous shareholders investments.
The shareholders under the aegis of Proactive Shareholders Association of Nigeria, PROSAN advised NAICOM to put eye on the activities of insurance companies as some of them are doing things that are not ethical.

In a statement addressed to the Commissioner of Insurance and obtained by Vanguard, PROSAN stated “In the last Annual General Meeting, AGM of AIICO Insurance Plc held in Ijebu Ode, Ogun State on Monday 22nd June, 2015, we came up with the following observations which we believe will help NAICOM to regulate our insurance companies to the best interest of the stakeholders, especially investors.”
In the  statement signed by both PROSAN National  Coordinator and General Secretary, Mr. Oderinde Taiwo and Mrs Oluyemisi Fawunmi , the Group commended NAIC OM for taken appropriate action on the dissolution and suspension of the Board and Management of International Energy Insurance Plc when it commitment fraudulent act.
According to the shareholders “First, one of the request that the Board of Directors of AIICO Insurance placed before the shareholders on page 12 of the annual report and accounts is the issue of fund raising and introduction of a strategic investor, International Finance Corporation.
This was how some insurance companies’ got approval from unsuspecting shareholders to obtain loans from Daewoo Corporation which remained unresolved till date. We want NAICOM to prevent our insurance companies from accessing another round of foreign loans that will eventually put our investment in jeopardy.”
The Group further observed the unnecessary influence core investor and by extension, the Chairman of AIICO Insurance have on the company and called on the regulator to investigate the issue of the chairman bringing his family members to the Board.“We believe if this type of negative attitude is not discouraged it will eventually undermine good corporate governance and hinder the progress of this company” the Group noted.