The National Insurance Commission (NAICOM) has extended the recapitalization deadline for Insurance and Reinsurance Companies earlier slated for June 30, 2020, to December 31, 2020.
A Circular by the Commission with No : NAICOM/
DPR/CIR/25-03/2019 /DECEMBER 30, 2019 signed by Mr Pius Agboola, Director, Policy and Regulation, NAICOM for the Acting Commissioner for Insurance, Mr Sunday Thomas, conveyed the new directive to all insurance and reinsurance companies.
A copy of the circular was made available to the News Agency of Nigeria (NAN) in Lagos on Monday.
Agboola said the decision for the extension of the deadline followed a review of the recapitalization plans submitted by the operators and various levels of the compliance observed.
” This circular is in furtherance to our earlier circulars referenced NAICOM/DPR/CIR/25/2019 dated May 20, 2019, and NAICOM/DPR/CIR/25-01/2019 dated July 23, 2019, on the above subject matter.
“The Commission has reviewed the recapitalization plans submitted by operators and various levels of compliance observed.
“Similarly, it has noted the inputs from the various engagements with relevant stakeholders.
” The Commission therefore hereby extends the recapitalization deadline to Dec. 31, 2020, ” he said.
Agboola explained that the Central Bank of Nigeria (CBN) has obliged the Commission with the Recapitalization Escrow Account (T24) for the deposit of fresh funds raised for recapitalization.
The Director stated that as part of the measures to ease the recapitalization exercise, some of the relevant agencies had set up Help Desk to fast track processing of application for ‘no objection’ and for approvals.
“Engagements with these Agencies on other palliatives are ongoing, ” Agboola stated.
The News Agency of Nigeria (NAN) reports that NAICOM, in the exercise of its statutory powers and regulatory functions, had on May 20 reviewed the minimum paid-up share capital requirement for all classes of insurers, i.e Insurance, and Reinsurance companies.
The directive was with the exception of Takaful operators and Micro-insurance companies doing business in Nigeria.
Following the reviewed minimum capital requirement, the existing minimum paid-up capital share of the Life Insurance business was reviewed and raised from N2 billion to N8 billion.
General Insurance business was raised from N3 billion to N10 billion, Composite business was raised from N5 billion to N18 billion and Reinsurance business was raised from N10billion to 20 billion.
The new paid-up share capital requirement takes immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in Nigeria.
