The National Insurance Commission (NAICOM) of Nigeria has announced the recapitalisation of insurance and reinsurance companies operating in the country.
The minimum capital base for reinsurance companies has been increased from N10 billion (USD $27.7 million) to N20 billion ($55.5 million), and from N3 billion ($8.3 million) to N10 billion ($27.7 million) for general insurance.
Additionally, the minimum capital base for life insurance companies has been raised from N2 billion ($5.5 million) to N8 billion ($22.2 million), and for composite insurance from N5 billion ($13.9 million) to N18 billion ($49.9 million).
Salami Rasaaq, Head of the Commissioners Directorate for NAICOM, explained that the revisions would apply to “all insurance and reinsurance companies other than takaful operators and micro insurance companies.”
“The new minimum paid-up share capital requirement shall take effect from the commencement date of the circular for new applications which is May 20, 2019,” he continued.
Existing insurance and reinsurance companies shall be required to fully comply with the new rules by June 30, 2020.
According to Rassaq, the re/insurance industry witnessed its last recapitalisation in 2005/2007.
