The commission disclosed this on Monday in a circular which was signed by the Director (Policy & Regulation), NAICOM, Pius Agboola, to all insurance and reinsurance companies with the headline ‘Minimum paid up share capital policy for insurance and reinsurance companies in Nigeria.’
NAICOM stated that the circular 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.
On deadline for recapitalisation, it 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.”
On the escrow accounts with the Central Bank of Nigeria, it stated that, “The CBN has obliged the commission with the recapitalisation escrow account (T24) for the deposit of fresh funds raised for recapitalisation.”
The commission explained the palliative measures in place for the underwriters.
“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.
It added that engagements with these agencies on other palliatives were ongoing.
In an earlier circular, NAICOM 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 regulator also increased the capital of reinsurance companies from N10bn to N20bn.
NAICOM stated that the insurance firms’ paid-up capital would be their new capital base.