NAICOM extends recapitalisation deadline for Insurance, Reinsurance firms to Dec 2020

The National Insurance Commission (NAICOM) 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 Mr Pius Agboola, Director, Policy and Regulation, NAICOM for the Acting Commisioner for Insurance, Mr Sunday Thomas, conveyed the new directive to all insurance and reinsurance companies.
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.
” 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 Commision 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 Dec. 31, 2020, ” he said.
Agboola explained that the Central Bank of Nigeria (CBN) 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.
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 , i.e 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.