The National Insurance Commission (NAICOM), has said the submission of recapitalisation progress report for all insurance and reinsurance companies will now be made monthly and submitted not later than five working days of the end of each month, effective end of August, 2020.
The Commission disclosed this yesterday in a circular signed by its Director, Policy and Regulation, Pius Agboola.
NAICOM reiterated that the minimum paid-up share capital shall be through any or a combination of existing paid-up share capital, cash payment for new shares, retained earnings – capitalisation of undistributed profits, payment in kind (such as properties, Treasury bills, shares, bonds) for new shares issued – which must be converted to cash not later than three months to the recapitalisation deadline; and share premium.
For private placement, NAICOM noted that appropriate clarification must have been obtained from the relevant regulatory agency to the effect that insurance and reinsurance companies may offer more than 30 per cent of the existing issued and fully paid shares.