BY NKECHI NAECHE—–The National Insurance Commission (NAICOM) on Tuesday refuted news publication in BusinessDay Newspaper that Nem, AIICO, Consolidated Hallmark, Leadway, AXA Mansard, FBN Insurance and Continental Re solvency ratios are below the regulatory threshold.
The Publication which was published on Tuesday, May 08, 2018 further said that Aiico Insurance Nigeria Plc has a solvency ratio of 55 percent, First Bank Insurance Plc, 59.10 percent; Leadway Assurance Limited 76 percent; NEM Insurance Plc, 93 percent and Continental Nigeria Plc 90 percent.
While Mansard Insurance Plc’s and Consolidated Hall Mark Insurance Plc’s and ratios of 132 percent and 116 percent are below the threshold.
According to the commission the report is far from being true, adding that the media organization was not sure of its facts.
The commission made its stand known through a statement made available to BusinessToday online by its Director of Communication, Razaaq Salami that “the commission while not holding brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refutes this claim in its entirety.
It added that “the five companies as mentioned in the publication are financially strong and solvent. With the benefit of hindsight, the report is not only false but misleading as the stated solvency ratios are at variance with the true position.
“For the avoidance of doubt, Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per centum of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater”.
Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws.
The Commission however reiterates that members of the press should always explore all avenues to verify their facts before going to bed to avoid misleading the public.