BY BABAJIDE KOMOLAFE
National Insurance Commission (NAICOM) has cautioned shareholders of FBN Life Assurance on dividend payment saying that life insurance business has long gestation and hence they should not expect dividend too soon.
“Life insurance business has long gestation, so you must be patient and not begin to pressurise the management for dividend. You should be ready to wait for three to four years before expecting any dividend. So you must give the management enough time before demanding for dividend,” said Mr. Dolapo Oni, Assistant Commissioner NAICOM Lagos Control Office.
Oni who represented the Commissioner for Insurance, Mr Fola Daniels at the official launching of FBN Life said “Life assurance business is going down in the country as many insurance experts have deviated into general insurance business due to the challenges of the business.
“To overcome the challenges of the business, I will advise you to pay claims promptly. When you do this you would not need to do advert campaign. The beneficiaries would advertise your company to others”.
FBN Life Assurance Limited is one the new entrants into the insurance industry, and is jointly owned by First Bank Nigeria Plc and the Sanlam Group of South Africa.
Speaking on the rationale for establishing the company, Group Managing Director/Chief executive, First Bank, Mr Bisi Onasanya said, “FBN Life Assurance Limited, the newest strategic business window in the FirstBank Group.
FBN Life Assurance Limited was incorporated as part of FirstBank’s commitment to a process of integrating and consolidating its customer service systems and improving the service process itself. The key deliverable was to combine FirstBank’s strong brand equity with the insurance business’ ability to offer the right product or combination of products to the right customer through the right channel at the right time.
“At FirstBank, First Life comes through in the midst of the inroads we have forged in other dynamic areas of business operations, which include investment banking, trusteeship, assets management services, registrarship services, pension custodial services, private equity/venture capital, insurance brokerage, currency trading and micro financing. We are particularly excited to add life insurance to our growing chain of businesses. Our brand pillars, which we hold dearly, include enterprise and service excellence. You can rest assured that we would continue to provide innovative and life enriching solutions to the business needs of our customers and the world at large.
“We are proud of our association with the Sanlam Group, one of Africa’s foremost insurance providers, with over nine decades of operation and offices across Africa, Europe, Asia and the United States.
“I have confidence in the values and organisational culture of FBN Life, which are naturally offshoots of the values and culture which have brought FirstBank through one hundred and seventeen years of dynamic leadership in the financial services industry. Some of you here can attest to the upswing of FBN Life operations in the past six months and its reverberating influence on the insurance sub sector”.