NAICOM extends recapitalisation deadline for Insurance, Reinsurance companies

The National Insurance Commission has extended the recapitalisation 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 Pius Agboola, Director, Policy and Regulation, NAICOM, for the Acting Commissioner for Insurance, 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 in Lagos on Monday.
Agboola said the decision for the extension of the deadline followed a review of the recapitalisation plans submitted by the operators and various levels of the compliance observed.
The circular said: “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 recapitalisation 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 recapitalisation deadline to December 31, 2020.”
Agboola explained that the Central Bank of Nigeria has obliged the Commission with the
Recapitalisation Escrow Account (T24) for the deposit of fresh funds raised for recapitalisation.
The Director stated that as part of the measures to ease the recapitalisation 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 reports that NAICOM, in 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, that is 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 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 N10 billion to N20 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.