Recapitalization and consolidation of insurance company in Nigeria (business admin)121 pages
CHAPTER ONE
1.1 Preamble
Most insurance companies lack the criteria mass to survive long term. It is said that the sector is highly fragmented and rife with over with over capacity. With this, we do not see how most of the smaller players can effectively compete and remain profitable in the insurance environment.
Before going further into the re‑capitalization of insurance companies in Nigeria, it is only important and pertinent to understand the meaning of insurance and what it entails and also the meaning of re‑capitalization.
Insurance is defined according to Isenmila (2002) as “a contract by a person called the insurer or assured agrees in consideration of money paid to him called the premium by
another person called the insured or assured, to indemnify the latter against loss resulting to him on the happening of certain
events”. Insurance is a social device providing financial compensation for the event of misfortune or unforeseen happenings. It is agreed towards efficient risk management
through risk transfer, where the burden of risk is borne by a company set aside for that purpose. Insurance companies bear the burden of their clients when incidents of risk insured
against occur; thereby receiving their clients from the hazards by indemnifying them with the actual value necessary and sufficient to put them back to their former position of business, that is nothing less or more than they were.
On the other hand, by re‑capitalization, we mean that there is already an existing capital that is needed to be shored up. Capital is the amount or human’s wealth of money that is
being invested into a business. Therefore, re‑capitalization is a conscious effort to increase a firm’s initial or existing capital of its owners from a given amount to a more desired amounts
belonging to the shareholders in a given from..............ORDER FOR COMPLETE PROJECT MATERIAL NOW!! .
