Zenith General Insurance Limited, Custodian and Allied Plc, FirstBank Insurance Limited, and Leadway Assurance Company Limited have the strongest solvency margin among peers.
These means these firms are the most solvent and prepared in meeting all future liabilities as they their margins are well above the regulatory benchmark of 100 percent.
| INSURNACE COYS | Solvency Margin | Rank |
| % | ||
| ZENITH GENERAL | 734% | 1st |
| CUSTODIAN | 504% | 2nd |
| FBN INSURANCE | 486% | 3rd |
| LEADWAY | 404% | 4th |
| WAPIC | 385% | 5th |
| NEM | 302% | 6th |
| LINKAGE ASSURANCE | 283% | 7th |
| AIICO | 195% | 8th |
| MUTUAL BENEFIT | 177% | 9th |
| SOVERIEGN TRUST | 176% | 10th |
| CONSOLIDATED HALL | 156% | 11th |
| REGENCY ALLIANCE | 148% | 12th |
| KBL INSURANCE | 128% | 13th |
| AXA MANSARD | 126% | 14th |
| EQUITY ASSURANCE | 107% | 15th |
Source: Audited Accounts uploaded on NSE and based on available data as at 17th May.2018
In document gleaned by BusinessDay, Zenith Insurance Limited has a solvency margin of 734 percent; Custodian and Allied Plc has a solvency ratio of 504 percent, FBN Insurance has a solvency margin of margin of 486 percent; Leadway Assurance Company Limited has a solvency margin of 404 percent; Wapic Insurance Plc has a solvency margin of 385 percent; NEM Insurance Plc has solvency margin of 302 percent; Linkage Assurance Plc has a solvency margin of 283 percent; AIICO Insurance Plc has solvency margin of 195 percent; Mutual Benefit Insurance has a solvency margin ratio of 177 percent.
Others are: Sovereign Trust Insurance Plc has a solvency margin ratio of 176 percent; Consolidated Hall Mark Insurance has a solvency margin of 156 percent; Regency Alliance has a solvency ratio of 148 percent; KBL Insurance has a solvency margin of 126 percent.
Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per cent of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater”.
In other words, the solvency margin assessments are based on admissible assets only, as inadmissible assets are normally excluded in line with section 24 (1-4) and (13) of the insurance Act 2003.
According to the Commission, these companies have strong solvency margins (ratios) and strong capacities that enable them meet claims obligations, as shown in their 2017 financial statements approved by the Commission.
THE National Insurance Commission (NAICOM) has revised capitalization model in the insurance industry from compliance based to risk-based solvency supervision model.
This means that an insurance company intends to insure business in the peak risk portfolio such as oil, aviation and marine underwriting, must have sufficient financial resources to meet their obligations with respect to their insured.
This means that an insurance company intends to insure business in the peak risk portfolio such as oil, aviation and marine underwriting, must have sufficient financial resources to meet their obligations with respect to their insured.
However, the minimum capital base in the industry remains unchanged. For instance, insurance companies underwriting life business must maintain N2 billion capital base, N3 billion for non-life operators, N5 billion for composite insurance companies, while N10 billion is for re-insurance companies.
