NAICOM Clears 26 Insurance Firms To Commence Recapitalization Plans

26 insurance companies have been granted “No Objection” to
proceed with their recapitalization plans after meeting the
necessary requirement in their work plan to the National Insurance
Commission (NAICOM). The Commission announced the approval
yesterday after it concluded review of the submissions.

In a statement that was issued by its head, Commissioner for
Insurance’ Directorate, Rasaaq Salami, the insurance watchdog said
the approval was in keeping with the recapitalization roadmap.
Salami said NAICOM has communicated individual companies on their
positions. The Commission said it received plans of 47 insurers and
two reinsurers.

The statement added that the plans of 17 companies were
corrected and have been advised to resubmit their new plans using
paid-up capital and not shareholders fund.

Similarly, four companies do not have the requisite 2018
financial statements and are thus, advised to review their plans of
using IPO, while one company is said no to have litigation issues
and has been advised to resolve them as soon as possible to enable
its progress.

Their names of the affected companies were not given.

According to Salami, one company’s submission was noted to have
met the necessary requirements, adding that the review of
submissions from two companies is ongoing while,

Tree companies are yet to submit their recapitalization
plans.

The National Insurance Commission (NAICOM) is resolved to adhere
to the recapitalization roadmap towards achieving its desired
objectives in the best interest of all stakeholders.

Recall NAICOM had issued a circular issued on May 20, 2019,
increasing the paid up share capital of Insurers and reinsurers in
Nigeria and. Subsequently, a directive was given to companies to
submit their recapitalization plans by August 20, 2019.

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