Joseph Inokotong and Chiamaka Ajeamo
In furtherance of the planned insurance industry recapitalisation, the Federal Government said it has granted 26 companies “No Objection” authorisation to proceed with their plans, while one insurer’s submission was said to have met the necessary requirements.
This was as 17 other companies submissions were corrected with the regulator advising them to resubmit their amended plans using paid-up capital and not shareholders fund.
However, four companies were said to have failed to come up with the requisite 2018 financial statements and were advised to review their plans of using IPO.
One company has litigation issues and has been advised to resolve them as soon as possible to enable its progress.
Interestingly, while one company’s submission was adjudged to have met the necessary requirements, the review of submissions from two companies is ongoing.
The National Insurance Commission (NAICOM) said in Abuja yesterday that three companies are yet to submit their recapitalisation plans. In all, the Commission said it has received plans of 47 insurers and two reinsurers, and all insurance stakeholders have been notified of the development.
The Head, Commissioner for Insurance’ Directorate, ‘Rasaaq ‘Salami, while giving update on the insurers and reinsurers recapitalisation said the development is in keeping with the recapitalisation roadmap.
He affirmed that the NAICOM has concluded review of the submissions from the insurance and reinsurance companies, and have communicated same to individual companies on their positions.
The NAICOM had on May 20, 2019 issued a circular increasing the paid up share capital of insurers and reinsurers in Nigeria, and subsequently directed the companies to submit their recapitalisation plans by August 20, 2019.
Salami said “The National Insurance Commission (NAICOM) is resolved to adhere to the recapitalisation roadmap towards achieving its desired objectives in the best interest of all stakeholders”.