LAW Union and Rock Insurance Plc is wooing foreign investors to inject capital into the firm to make it be among the top five in the country, the new Chairman of the company, Remi Babalola has said.
He made this known to reporters in Lagos. Babalola said the company decided to woo foreign strategic investors to improve product distribution, upgrade processes and platforms, and deepen participation in oil and gas, power and transportation segments.
He said the outlook for the industry is positive while the company it is very bright.
The truth is the stage at which Law Union is now, the capital is small compared to the brand value that the company has, as well as the opportunities.
He said: “The Law Union used to be among the best five in the industry even when we had over 110 insurance companies. Now we have fewer than 50. We need to take the company to where it used to be and probably better than that and the only way we can do that is to inject capital.
“It is to bring in skills, capacity, and technology, enhance description platform. We also want to ensure that our staffs are well trained such that they will be attracted to outsiders but we will motivate them so much that they will remain inside. The only way we can do that is by partnering with foreign strategic investors. And they are coming with non-life, reinsurance agency, and collaborations with technology companies, among others. By the time they come in, they will be significant shareholders in the company and the face of the industry will change.”
On the Minister of Finance, Mrs. Kemi Adeosun’s call for recapitalisation, he stressed that change was inevitable in the industry and the time was right for insurance operators to grow the industry.
“If we do not take the positioning in-house and recapitalise, external forces will take the positions for us. So shareholders are taking the right decision to recapitalise now. We must not wait until we are being forced to take the decision. We have an industry that is less than 0.4 per cent contribution to the GDP and this is not good. Even Nollywood contributes much more than that. So it’s something that the operators and regulators need to sit down and talk about the fundamental problems. Why would the insurance penetration in Benin Republic be higher than that of Nigeria? Our economy is stronger.
“It is not because we are more religious then them, or our culture doesn’t favour sharing risk and if we say that there is recession, I think that is when people need insurance more. When there is no recession, if they steal your car you can buy another one because you have too much money to play around with, you will simply buy another one.

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