NAICOM Sets Insurance Recapitalisation Deadline to September 30, 2021
The National Insurance Commission (NAICOM) has set September 30, 2021 as new deadline for insurance and re-insurance firms’ recapitalization in the country.
The development is contained in a new circular made available to Economic Confidential in Abuja.
The insurance regulator has said insurance companies are to meet 50 per cent while reinsurance companies 60 per- cent of their paid-up share capital by December 31, 2020 and round up the procedure by September 30, 2021.
NAICOM’s Director, Policy and Regulation, Mr Pius Agboola on behalf of the Commissioner for Insurance in a circular dated June 3, noted that the COVID-19 pandemic made it difficult to proceed with the Dec. 31, 2020 deadline.
According to him, in order to checkmate the likely negative consequences of the pandemic, the commission extended and segmented the recapitalisation process into two phases
Agboola said insurance companies were expected to pay 50 per cent of the minimum paid-up capital while re-insurance companies were expected to pay 60 per cent by Dec. 31, 2020.
“The segmentation is indicated as : Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.
“General Insurance business with existing minimum paid-up capital of N3 billion is expected to pay a minimum paid-up capital of N5 billion by Dec. 31, 2020 and N10 billion by Sept. 30,2021.
“Composite Insurance business with existing minimum paid-up capital of N5 billion is expected to pay a minimum paid-up capital of N9 billion by Dec. 31. 2020 and N18 billion by Sept. 30, 2021.
“Reinsurance business with existing minimum paid-up capital of N10 billion is expected to pay a minimum of N12 billion by Dec. 31,2020 and N20 billion by Sept. 30,2021, ” he said.
He further said any insurance firm that fail to satisfy the required minimum paid-up capital by the end of Dec. 31,2020 may be restricted on the scope of business to be engaged in.
