Nigeria: Insurance in Nigeria is Now for Real - Dere Otubu - AllAfrica.com

Patience SaghanaLagos

Mr Dere Otubu, Chairman, Staco Insurance Plc, states coverage concern in Federal Republic Of Nigeria now is for real.In this interview with Patience Saghana, Mister Otubu who is the pillar of Staco Insurance talks on the factors driving enlargement into the Occident African sub-region.

Mr Dere Otubu, Chairman, Staco Insurance Plc

He talks on local content policy of the federal authorities in the oil and gas industry and the demand for execution of subdivisions of the Insurance Act 2003 concerning mandatory coverage of edifices and the projected share offering by his company and more. ExcerptsMarket share?We have got invested in a mortgage banking business. We have got concluded programs to open up new subdivisions in Sierra Leone and Liberia. The Sierra Leone subdivision should be up and running in the adjacent 30 days.

We are also going to set up in Gambia, Republic Of Ghana and somewhere down in Republic Of Angola or southern African countries. Last twelvemonth have been a very good twelvemonth for us; we mean to declare a bumper dividend to our shareholders. We were able to excel all our marks This impressive consequence we were able to accomplish was as a consequence of good staff, good way squad and good board direction. We are moving on to the adjacent degree of our concern now. We are conquering Nigerian and we desire to suppress more. We desire to do certain we have got subdivisions in the 36 states of the federation to cover the state effectively. Staco is also determined to go a 1 halt fiscal establishment and not just a company specialising in coverage business. That is why we are going into mortgage banking; we also have got a subordinate which specialises in places business. Later in the year, we mean to commence life and wellness coverage business. We have got got already applied to the National Insurance Committee for life coverage and we have already incorporated our wellness company.

By the end of this year, Staco is going to be a very robust company with about five or six major subordinates and subdivisions across the Occident African sub_region. The working capital alkali of the company would also have got increased to about N20 billion. We mean to near the working working capital marketplace very soon to raise funds.

Additional capital?

As you cognize Staco is a public quoted company, we have got held an other ordinary full general meeting to let our stockholders to O.K. our proposals. This was to enable us store for up to N15 billion at the working working capital market, as well as addition the company's authorised share capital from N2.5 billion to N3.5 billion. Today, we have got between 8000 and 10,000 stockholders and we cannot take them for granted. We will always seek their blessing for anything we are going to do.

Insurance stocks?

Every where in the world, the coverage companies control the economic system because of the manner we bring forth our revenue. We are into life, general business, wellness insurance, oil, motor coverage and all that. In the developed states of the world, coverage companies ain virtually everything and they have the banks.

But in Nigeria, it is a contrary scenario. But for the first time, we at Staco are put to have depository financial institution too. All these Banks have got a working working capital of more than than N25 billion and our capital is N5 billion. We necessitate to renew customers' assurance in coverage business. The investment populace cognizes that with the new share working capital we now have, the existent coverage companies have got got come up to remain and that they will be able to stand up the diagnostic test of time.

That have renewed assurance in them. There is increased consciousness about coverage now. Insurance is now the chief focusing of the economic system and as that grows, we will do money. Every investor cognizes that if there is any topographic point to do money today, it is insurance. I can guarantee you that if you set your money in coverage stocks, you are going to do more than money.

Expansion?

The human race is a planetary village. Nigeria, from no where, is a beginning to take control of Africa. In Sierra Leone the powerfulness works that powerfulnesses the state was taken there by a Nigerian company. Such a thing have to be insured. The coverage companies in these states make not have got the capacity to transport immense risks.

In Occident Africa today, Nigerian companies are all over the place. The people necessitate an coverage company they can recognize. So, we desire to be that trade name that the Nigerian community, the foreign community, and the Nigerian concern work force all over Africa can place with, trade with and still experience at place that they are doing insurance.

Relevant Links

If you travel to a topographic point like Sierra Leone now, there are about eight Nigerian Banks operating there at present, who is going to see them? We are going there to do money, not just to open up shops.

Consolidation in coverage brokerage firm arm?

Consolidation conveys strength to different companies. Staco is a littler company about two or three old age ago, but today, Staco is a large company. We are strategizing to be among the top three insurance companies in the state and by the saving grace of God, in twelvemonth 2009; we should have got attained that position.

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