Following the disruption to the economy instigated by COVID-19 pandemic, National Insurance Commission (NAICOM) has extended the deadline for the recapitalisation of insurance companies to September 30, 2021.
It, however, mandated insurers and reinsurers to meet 50 and 60 per cent of their minimum paid-up share capital by December 31, 2020, and complete the process by September 30, 2021, respectively.
In a circular issued on Wednesday, NAICOM noted that the incidence of COVID-19 pandemic has made it difficult to proceed with the December 31, 2020 recapitalisation deadline, hence, a review of the recapitalisation deadline, therefore, became imperative in order to mitigate likely negative consequences of the pandemic on the exercise.
The circular numbered; NAICOM/DPR/CIR/25-04/2020, signed by its Director, Policy & Regulation, Pius Agboola was titled ‘Segmentation of Minimum Paid-Up Share Capital Requirement for Insurance and Reinsurance Companies in Nigeria’.
It was sent to all insurance and reinsurance companies.
NAICOM maintained that insurance companies that failed to satisfy the required minimum paid-up capital by the end of December 31, 2020, maybe restricted on the scope of business they will transact.
The Commission charged insurance and reinsurance firms to ensure they fully comply with the approved minimum paid-up capital by September 30, 2021.
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