Nigeria, a country of more than 140
million people with a landmass of about 923,768.64sq. km and immense human and
material resources is a former British colony. Hence, the country shares almost
all its political and economic settings from its former colonial heritage.
Before the introduction of the modern form of insurance, some form of social
insurance had existed in the Nigerian society. These social schemes evolved
through the existence of extended family system and social associations such as
age grades and other unions. Until 1966, Nigeria copied British parliamentary
system of government. This British system still dominates aspects of the
country’s socio-economic settings. For instance, the legal practices in Nigeria
still reflect its colonial heritage. Economic institutions such banks and
insurance companies, in practice, copy the British style of conducting their
businesses.
The origins of modern insurance are
intertwined with the advent of British trading companies in the region and the
subsequent increased inter-regional trade. Increased trade and commerce led to
increased activities in shipping and banking, and it soon became necessary for
some of the foreign firms to handle some of their risks locally. Trading
companies were therefore subsequently granted insurance agency licenses by
foreign insurance companies.
Such licenses made it possible for
the firms to issue covers and assist in claims-supervision. There was an
initial slow pace of the growth of the insurance industry in the country,
particularly between 1921 and 1949. This is traceable to adverse effect of the
World War II on trading activities both in United Kingdom and Nigeria. As soon
as the war ended, business activities gradually picked up again, and insurance
industry in Nigeria began to record remarkable improvement in growth with the
establishment of the first indigenous insurance company 1958. At independence, only four of the then
25 firms in existence were indigenous. By 1970s, the number of indigenous
companies had far surpassed that of the foreign companies with Leadway
Assurance Company Limited, leading the pack of the then burgeoning industry.
With the Nigerian economy opening up
to limitless opportunities following the end of the Nigerian-Biafra war,
Leadway navigated into the economy in 1970 with a robust but chequered history
of being a forward-looking firm with focal emphasis on relationships, having started
operations as a direct motor insurance company.
Within a period of time, the
relationship developed to an integral stage what with the establishment of a
deepened relationship with the brokers’ network in Nigeria, thereby enjoying
80% of its current business from this source.
From the late 90s to the advent of the 21st century, the
Insurance market in Nigeria went through major significant changes which
necessitated the introduction of extant regulations aimed at reforming and
refining the industry to its purest, undiluted form of societal relevance.
Regulations such as the Companies and Allied Matters Decree of 1990, Banks and
other Financial Institutions Act, Banks and other Financial Institutions Act,
Motor Vehicle (Third Party) Insurance Act, National Insurance Commission Decree
of 1997, and the Insurance Act 2003 came into full force with an orchestration
of changes and rapid developments in the business of and practice of Insurance
in Nigeria.
In line with the need to meet the challenges of the new regulatory
frameworks which insisted on compulsory registration of all insurance companies
with National Insurance Commission (NAICOM), N2 billion minimum capital
requirement for Life Business operators, N3 billion minimum capital requirement
for General Insurance business, N10 billion minimum capital requirement for
Reinsurance business, statutory deposit of 10% of each capital requirement with
the Central Bank of Nigeria (CBN), and a compulsory level of local underwriting
of risks emanating from oil and energy operations across the country in order
to enhance the level of economic activity in Nigeria, Leadway Assurance carried effectively repositioned its
business to provide General & Industrial Property insurance business (such
as Motor, Marine, Aviation, Building, Engineering and Money), Casualty (such as
Worker’s Compensation, Public Liability). It also offers subsidiary financial
services like Bond, Secured Credit, miscellaneous financial losses and
Fund/Portfolio management. Its subsidiary, Leadway Life Assurance Company
Limited provides Life Assurance & Investment Policies (such as Endowment,
Deposit, Annuities and Critical Illness).
To further penetrate the market and establish its dominance, Leadway
perfected the art of focalising “the customer” and his needs to the pivotal
point of relevance in its operations and strategies. This, to a large extent,
guaranteed a steady growth in its commitment to providing integrated insurance
and financial services to its numerous customers. With the above, Leadway
became one of Nigeria's foremost insurance companies, with reputation for
service efficiency and customer reliability. For over 39 years, it has honoured
its underwriting commitments and has earned its reputation of excellence in
claims payment. LEADWAY now has a Shareholders' Funds of over N8.8billion and
total assets of N16billion. The Company internally generates funds for capital
projects as well as plays active roles in the local content arrangement of the
Oil and Gas Industry in Nigeria.
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| Oye Hassan-Odukale |
The Company’s remarkable success has
been possible because of its sound professional and business standards backed
by the uncompromising level of integrity of its Directors. An uncompromising
level of integrity of service is a tradition imbibed at LEADWAY and instilled
by its late founder, Sir (Dr.) Hassan O. Odukale, KJW, D.Sc, FCIIN (1926-1999).
As an astute and honest businessman the founding Managing Director and later
Chairman of the Board of Directors, Sir Odukale nurtured the Company to an
enviable position in the Nigerian insurance industry. His vision of dedicated
service to all customers remains a guiding principle that shapes the policies
of the company. Besides, as an Employer, Leadway believes in the strength of
human potentials as the major catalyst that makes the difference between a
successful organization and a failed one. In this regard, the company’s Human
Capital Development philosophy is hinged on sourcing for the best candidates in
terms of knowledge, skills and attitudinal potentials. The Company is home to
all educational disciplines.
Essentially, Leadway believes in
building its human capital potential primarily by recruiting highly resourceful
graduates and develops these individuals by a number of methods including on
the job coaching and professional training through participation in local and
international training programmes. The Company hardly takes on experienced
hands from outside and relies on the succession of its own internally groomed
staff to positions of higher responsibility. This in itself, hallmarks its
commitment to Nigeria’s future as no nation can rise beyond the exposure and
capacity of its working population. Leadway, as corporate citizen of Nigeria,
plays pivotal roles in the nation’s aggregated drive to curb rising
unemployment.
With several national and international
awards in its kitty, and AA-, AA+ ratings from Global Rating Co and Agusto
& Co Ltd, Leadway continues to lead the way in the nationalistic efforts at
solidifying Nigeria’s international credibility and rating as an emerging
economic super power. According to Ratings Services Limited, the financial
strength rating of 'B-' (Fair) and the issuer credit rating of "bb-"
of Leadway Assurance Company Limited, reflect Leadway's "adequate
risk-adjusted capitalization, marginally decreasing overall earnings and a
resilient business profile in the Nigerian market,". The rating agency
added that in its opinion, "Leadway's current and prospective
risk-adjusted capitalization is adequate and supports the company's business
plan.
As Nigeria clocks 50, no greater assurance
of a future so golden for its people can be accessed on any template other than
that which Leadway offers.
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