The National Insurance Commission (NAICOM) has given its approval for 26 insurance companies to proceed with their recapitalisation plan.
This is contained in a circular issued by the body on Tuesday and signed by Mr Rasaaq Salami, its Head, Commissioner for Insurance Directorate.
Nigerian Tribune recalls that the insurance industry regulatory body had, in May this year, given insurance companies till June 30, 2020 to shore up their capital base as follows; life insurance companies from N2 billion to N8 billion, non-life insurance firms from N3 billion to N10 billion, composite insurance firms from N5 billion to N18 billion and re-insurance companies from N10 billion to N20 billion.
Salami states that, “Further to the circular issued by NAICOM on May 20, 2019 increasing the paid up share capital of insurers and reinsurers in Nigeria and, the subsequent directives to companies to submit their recapitalization plans by August 20, 2019 the Commission hereby notifies all insurance stakeholders that it received plans of Forty-Seven (47) insurers and two (2) reinsurers.”
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The circular added that in keeping with the recapitalization roadmap, NAICOM had concluded the process of reviewing the submissions and had communicated the outcome of the exercise to each of the companies.
According to the circular, “Twenty six (26) companies have been granted ‘No Objection’ to proceed with their plans; the plans of 17 companies were corrected and have been advised to resubmit their new plans using paid-up capital and not shareholders fund; four (4) companies do not have the requisite 2018 financial statements and are thus, advised to review their plans of using IPO; one (1) company has litigation issues and has been advised to resolve them as soon as possible to enable its progress; one (1) company’s submission was noted not to have met the necessary requirements, the review of submissions from two (2) companies is ongoing while, three (3) companies are yet to submit their recapitalization plans.”
NAICOM expressed its resolve to adhere strictly to the recapitalization roadmap with a view to achieving its desired objectives in the best interest of all stakeholders.
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