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We are resolving suspension of our life insurance - NIC
NIC says its life operating incense was suspended the day it had appointed a new chief executive officer. Photo | file
What you need to know:
On August 29, Insurance Regulatory Authority suspended the operating license of NIC Life over delayed appointment of a chief executive officer.
NIC Holdings has said it is doing everything possible to resolve the impasse surrounding its life insurance business operated under NIC Life.
In a statement sent to investors through the Uganda Securities Exchange, NIC said it had been made aware of the suspension of its operating licence of one of its subsidiaries - NIC Life - by Insurance Regulatory Authority (IRA) over delays to appointment a substantive chief executive officer.
However, Mr Elias Edu, the NIC company secretary, said in a statement that the board, being aware of regulatory requirement, had advertised the position of chief executive officer in July, noting that the process to recruit was underway.
IRA, he said, had been made aware of the process in a meeting on August 12, which was again communicated in a letter on August 19.
Mr Ibrahim Kaddunabbi, the IRA chief executive officer , yesterday told Monitor that the suspension was based on a regulatory requirement, noting that as soon as the company fulfils it the licence shall be reinstated.
However, Mr Edu had indicated in the statement that IRA had suspended its life operating licence on the day (August 29) it had appointed Mr Oluwatoyin Sanyaolu, a chartered insurer, who had been serving as a director on the NIC board, as the new chief executive officer.
NIC Life is an integral part of NIC Holdings, representing 21 percent of the company’s total assets and 10.3 percent of gross written premium as of December, 31 2021.
In July last year, NIC reported a recovery from years of losses, posting a 9 per cent growth in written premiums.
During the period ended December 2020, NIC indicated that written premiums had grown to Shs22b compared to Shs20b in 2019.
Dr Alan Shonubi, the then NIC chairman, said that whereas 2020 had been a volatile year for most businesses, NIC had managed to record a major turnaround in its bottom line from loss to profit making, posting Shs1.91b as profit after tax compared to a loss of Shs2.7b in 2019.
