The ongoing recapitalization in the nation’s insurance industry has received at least a N56 billion funding from four new underwriting companies and one reinsurer licensed weekend.
Industry regulator, the National Insurance Commission (NAICOM) on Friday issued operational license to
Industry regulator, the National Insurance Commission (NAICOM) today handed over five operational licenses to four insurance companies and one reinsurance company.
Tony Elumelu’s Heirs Holding subsidiaries -Heirs Insurance General and Heirs Insurance Life; while Stanbic IBTC Holding received license for Stanbic IBTC Insurance Limited Life.
Others are Enterprise Life Assurance Company Nigeria Limited, subsidiary of Ghana’s largest insurer;
FBS Reinsurance Limited, owned by other grand masters in Nigeria’s insurance business including Fola Daniel, former commissioner for Insurance; Bala Zakariyau’ former chairman of Niger Insurance Plc, Ahmed Olaniyi Salawu, executive chairman of Standard Insurance Consultants, and Wole Oshin, group CEO of Custodian Investment Plc.
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Others are Ebele Ofunneamaka Okeke, who rose to the position of the Head of Nigerian Civil Service before her retirement, and also, Yusuf Hamisu Abubakar, a lawyer, and an accomplished administrator and businessman with vast experience at the senior executive level in power and communication sectors.
These bring the number of insurance companies in Nigeria to 59 insurers and 3 reinsurers.
Meanwhile, Heir Insurance Limited (General), has picked, Olaniyi Stephen Onifade, as its managing director; Stanbic IBTC Insurance Limited, picked, Akinjide Orimolade, as managing director; Heirs Life Assurance Limited, picked, Abah Okoriko and Enterprise Life Assurance Company Nigeria Limited, picked, Fumilayo Abimbola Omo.
The National Insurance Commission (NAICOM) had on 3rd June 2020 extended insurance companies recapitalization deadline to 30th September, 2021, with first phase to end December 31, 2020.
NAICOM in a revised circular sent to insurance and reinsurance companies titled: ‘Segmentation of minimum paid-up share capital requirement for Insurance and Reinsurance Companies said “The incidence of Covid-19 Pandemic has made it difficult to proceed with the 31st December 2020 recapitalisation deadline earlier slated.”
The statement signed by Pius Agbola, director Policy and Regulation in NAICOM said a review of the recapitalisation deadline therefore became imperative in order to mitigate likely negative consequences of the pandemic on the exercise.
According to the Commission, the exercise will run in two phases as follows: 50 percent of the minimum paid-up capital for insurance and 60 percent for reinsurance shall be met by 31 December 2020, while they will be required to fully comply with approved minimum paid up capital not later than 30th September 2021.”
The segmentation shows life companies operating currently with N2 will increase to N4 billion by 31st December 2020, as first phase and to N8 billion by 30th September 2021; General business companies operating currently with N3 will increase to N5 billion by 31st December 2020, as first phase and to N10 billion by 30th September 2021; Composite business companies operating currently with N5 will increase to N9 billion by 31st December 2020, as first phase and to N18 billion by 30th September 2021; while Reinsurance companies operating currently with N10 billion will increase to N12 billion by 31st December 2020, as first phase and to N20 billion by 30th September 2021.
