Out of the 57 registered insurance companies and two reinsurers, one insurance company has met the recapitalisation requirement, the National Insurance Commission (NAICOM) said in a statement Wednesday Morning.
According to the Commission, 47 insurers submitted their recapitalization plans and have all been directed on what to do.
This was released in a statement titled ‘Update on Recapitalization of Insurers and Reinsurers’ signed by Rasaq Salami, head. Commissioner for Insurance Directorate.
“Further to the circular issued by NAICOM on May 20, 2019, increasing the paid-up share capital of Insurers and reinsurers in Nigeria and, the subsequent directives to companies to submit their recapitalization plans by August 20, 2019, the Commission hereby notifies all insurance stakeholders that it received plans of Forty-Seven (47) insurers and two (2) reinsurers.”
He said in keeping with the recapitalization roadmap, the Commission has concluded a review of the submissions and has communicated individual companies on their positions as detailed below:”
Salami said twenty-six (26) companies have been granted “No Objection ” to proceed with their plans
That the plans of 17 companies were corrected and have been advised to resubmit their new plans using paid-up capital and not shareholders fund;
That four (4) companies do not have the requisite 2018 financial statements and are thus, advised to review their plans of using IPO.
That one company has litigation issues and has been advised to resolve them as soon as possible to enable its progress.
Also, that one company’s submission was noted to have met the requirements.
That the review of submissions from two (2) companies is ongoing while,
And that three (3) companies are yet to submit their recapitalization plans.
According to him, the National Insurance Commission (NAICOM) is resolved to adhere to the recapitalization roadmap towards achieving its desired objectives in the best interest of all stakeholders.
