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Chuks Udo Okonta
Shareholders have expressed their desire for dividends from the increase in motor insurance premium.
The National Insurance Commission (NAICOM) had on January 1, this year mandated insurers to sell third party policy for N15,000 as against N5,000 and comprehensive policy for not less than five per cent of the value of a vehicle.
The National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Moses Igbrude, who said this when members of Insurance and Pension Editors of Nigeria (IPEN) visited the association in Lagos, noted that shareholders invested their funds expecting to reap from dividend payout, bonuses and price appreciation.
He noted that the increase in motor insurance premium if properly managed and underwriters play according to set rules by not cutting rates, it would enhanced the industry’s premium, which should translate to dividends for shareholders.
He expressed misgivings over non-payment of dividends by some companies, whilst commending those who have remained consistent in paying dividends.
He said companies that are paying dividends would continue to do well leveraging shareholders’ supports, adding that shareholders would continue to demand shares of such companies, thereby pushing the shareld out of those classified as penny stocks at the Nigerian Exchange.
He called on operators not paying dividends to follow the steps of those making shareholders happy through dividends payment.
According to NAICOM the Non-Life segment of insurance market showed that
motor Insurance generated 14.9 per cent which was N62.03 billion out of the total non-life premium of N146.3 billion.
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