NKECHI NAECHE ESEZOBOR—–Ahead of 30th June, 2020 deadline for insurance industry recapitalisation, the National Insurance Commission ( NAICOM) on Tuesday said it has granted no objection to 44 insurance companies to proceed with their recapitalisation plan.
The commission disclosed this during an interactive session with shareholders in Lagos that 10 insurance firm are yet to get the no objection approval to continue with their recapitslisation Plans.
According to NAICOM two insurance companies up till date are yet to submit their recapitalisation plan, while two others their plans are still under review.
It added that six companies have been directed by the commission to rewrite their recapitalisation plans.
With nearly N200 billion expected into the Nigerian insurance industry after the ongoing recapitalisation, the sector is hopeful to emerge stronger, contribute reasonably to the economy and also able to offer good returns to investors.
With the new capital, the industry will have enough resources to attract quality manpower, acquire necessary skills to underwrite big ticket risks, increase retention in the local market, and be able to take advantage of untapped potentials to create shareholder value.
NAICOM had in a circular issued on Monday May 20, 2019 announced increase in the paid-up share capital of life companies from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance Companies from N10 billion to N20 billion.
