It would be recalled that the Federal Government through the National Insurance Commission (NAICOM) recently issued a circular to all insurance companies mandating them to recapitalise and communicate to the commission, which of the three tiers they intend to play in before October 1st , 2018, with Tier-Based Minimum Solvency Capital requirements, for assessment of capital adequacy and solvency control levels of all insurance companies in Nigeria takes off.
According to the circular, “Only companies that meet the respective Tier requirements shall lead on new businesses in those categories with effect October 1, 2018. Companies shall be assessed, in the first instance, on their approved financial statement for 2017, and/or, audited half year account for 2018.
It would be noted that only seven firms out of the 21 quoted insurance companies on the Nigeria stock Exchange (NSE) are presently qualify.
However, where a company is yet to obtain approval for its 2017 financial statement, its last approved audited accounts will be used for the assessment.
The commission had earlier put the deadline for the implementation of this exercise at 1st of January, 2019, of which operators vehemently disagreed with, before changing its stand to shift it backward.
On a sectoral basis, the insurance sector on the Nigerian Stock Exchange had been unappreciative, with few out of the numerous insurance company listed, doing above average, while over the years some had delisted, just as some were on the watchlist of the local Bourse.
and then