Twelve years after the last recapitalisation exercise in Nigeria’s insurance industry, insurance companies with composite license will now need to upgrade their capital base from N5billion to N18 billion to continue to underwrite life and non-life insurance businesses in the country, LEADERSHIP learnt.
The new capitalisation, which translates to about 350 percentage increase from the previous capital base, kick starts a fresh recapitalisation exercise in insurance sector of the nation’s economy.
In a circular released and signed by the director, Policy and Regulation Directorate of the National Insurance Commission(NAICOM), Mr. Pius Agboola, yesterday, Life insurance firms were required to increase their minimum capital requirement from N2 billion to N8 billion, amounting to 400 per cent increase in their capitalisation.
Similarly, NAICOM mandates General insurance companies to raise their capital base to N10 billion from N3 billion to continue to exist in insurance…
