The National Insurance Commission, NAICOM has extended the recapitalisation deadline for insurance companies to December 31, 2020 from the earlier scheduled date of June 30, 2020.
This was disclosed on Monday by the commission in a circular which was signed by the Director (Policy & Regulation), NAICOM, Pius Agboola, to all insurance and reinsurance companies.
NAICOM stated in a circular with the headline ‘Minimum paid up share capital policy for insurance and reinsurance companies in Nigeria,’ that it was in furtherance of its earlier circular 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 circular stated, “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.”
It further stated that, “The CBN has obliged the commission with the recapitalisation escrow account (T24) for the deposit of fresh funds raised for recapitalisation.”
For the underwriters, the commission explained the palliative measures that have been put in place.
“As part of the measures to ease the recapitalisation exercise, some of the relevant agencies have set up help desk to fast- track processing of application for ‘No objection’ and for approvals.
Furthermore, the commission added that engagements with these agencies on other palliatives for the underwriters were ongoing.
NAICOM had earlier raised life insurance companies’ capital from N2bn to N8bn, general companies’ got a raise from N3bn to N10bn, while composite insurance companies’ capital was raised from N5bn to N18bn.
The capital of reinsurance companies was also raised by the commission from N10bn to N20bn.