Many companies have met the August 20 deadline set by the National Insurance Commission (NAICOM) to submit their recapitalisation plans, The Nation has learnt.
AXA Mansard Insurance Plc, Allianz Nigeria Insurance Plc, SUNU Assurances Plc, FBNInsurance, NEM Insurance Plc, Cornerstone Insurance Plc, LASACO Assurance, AIICO Insurance Plc and Mutual Benefit Assurance Plc met the deadline.
Leadway Assurance, on the other hand, already has more than the required capital and may not submit submit a new plan to the commission, it was gathered.
Deputy Director and Head of Corporate Communication, NAICOM, Rasaaq Salami, in an interview, said majority of the firms had submitted their plan.
He noted with satisfaction the rate of compliance, saying that it indicated that the companies understood what the import of recapitalisation.
‘’There is compliance by the companies and the Commission knows their plans. The next step for us is to review what they have submitted,’’ he added.
NAICOM, on July 23, mandated insurance and reinsurance firms to submit their recapitalisation plans to the Commission on or before August 20, 2019.The companies are required to increase their share capital not later than June 30, 2020. Going by this, the minimum paid-up share capital of a Life, Non-Life and Composite insurance companies, including re-insurance companies will be N8 billion, N10 billion, N18 billion and N20 billion respectively, from N2 billion, N3 billion, N5 billion and N10 billion.
The commission said: “Insurers and Reinsurers shall submit their recapitalisation plan to the Commission on or before 20th August, 2019. The plan should include among others a capital status of the Company based on the above referenced circular as at the last Audited Financial Statements; Board resolution on how to comply with the directives; and Detailed action plan on how the funds for the recapitalisation are to be sourced with timelines and deliverables.
“Also, companies intending to seek funds from the capital markets are required to submit their plan of action on a file-and-use basis while companies that intend to merge or acquire another should submit their proposal after which they must comply with Sections 30 and 31 of the Insurance Act 2003.
“The commission shall review and provide responses on the submitted recapitalisation plans on or before September 17, 2019. The review may require meeting with the Board and Management of each of the insurance company on its recapitalisation plan.
Similarly, the Commission is engaging with other regulatory bodies for possible palliatives in addition to those being considered by the Commission,” the commission added.
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