43 insurance, reinsurance firms scale recapitalisation hurdles as NAICOM declares new era

THE National Insurance Commission (NAICOM) has formally drawn the curtains on its year-long recapitalisation drive, announcing that 43 insurance and reinsurance companies have successfully met the enhanced minimum capital requirements.

The commission describes the outcome as the foundation of a new era for the insurance industry—one defined by stronger institutions, improved governance and greater public confidence.

In a statement released on Sunday, NAICOM said the successful completion of the exercise, conducted pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, marks a defining milestone.

President Bola Ahmed Tinubu signed the Act into law on July 31, 2025 as part of the administration’s broader financial-sector reforms aimed at supporting a US$1 trillion economy by 2030.

“The successful conclusion of the exercise is not the destination but the foundation,” the Commission stated. “It marks the beginning of a new era in which stronger institutions, stronger governance and stronger public confidence will make insurance work better for every Nigerian.”

Following the enactment of NIIRA 2025, NAICOM issued detailed Guidelines on the Implementation of Minimum Capital Requirements. The guidelines set out eligible capital instruments, admissible assets, verification procedures, timelines and supervisory expectations.

Through a rigorous process of review, verification and validation, the exercise has strengthened operators’ financial resilience, attracted substantial domestic and foreign investment, and restored investor confidence.

Forty-three companies cleared the final hurdle. Eight others that submitted evidence of compliance shortly before the statutory deadline remain under final verification and regulatory review; the Commission expects to conclude these assessments within 14 days.

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Among the successful firms are: Zenith General Insurance Company Limited (Non-Life), Leadway Assurance Company Limited (Composite), Custodian Life Assurance Limited (Life), Custodian and Allied Insurance Limited (Non-Life), NEM Insurance Plc (Non-Life), AIICO Insurance Plc (Composite), CHI Life Assurance Limited (Life), Heirs General Insurance Limited (Non-Life), Fin Insurance Company Limited (Non-Life), Cornerstone Insurance Plc (Composite), Mutual Benefits Assurance Plc (Non-Life), Heirs Life Assurance Limited (Life), Tangerine General Insurance Ltd (Non-Life), Capital Express Indemnity Insurance Limited (Non-Life) and Continental Reinsurance Plc, among others.

NAICOM said the higher capital base will improve insurers’ capacity to settle claims promptly, absorb emerging risks, underwrite larger and more complex risks in strategic sectors, and support long-term infrastructure investment. It will also enable Nigerian operators to compete more effectively in regional and global markets while providing a stronger platform for risk-based supervision that aligns capital with each company’s risk profile.

The commission reassured policyholders, investors and the public that it will continue to prioritise consumer protection, sound market conduct and deeper insurance penetration as it implements the remaining provisions of NIIRA 2025 and modernises the industry through technology and digitisation.

“Our unwavering commitment remains to build a fair, stable, innovative, inclusive and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy,” the statement concluded.

NAICOM expressed appreciation to the Federal Government, regulatory partners, shareholders, investors, operators and professional bodies for their cooperation, and pledged ongoing engagement and regular updates on post-recapitalisation developments.