Following the December 31, 2020 recapitalisation deadline given by the National Insurance Commission (NAICOM), to all insurance companies to upgrade their capital to a new threshold, only a few of the underwriters is showing readiness to scale through the exercise. Similarly, General insurance companies are to raise their capital base to N10 billion from N3 billion, while Reinsurance firms will now need N20 billion minimum capital to operate in Nigeria. Among few operators showing readiness for the recapitalisation exercise are: Linkage Assurance Plc, Mutual Benefits, Cornerstone Insurance Plc, Sovereign Trust Insurance Plc, NICON Insurance Limited, FBNInsurance, and Anchor Insurance Company Limited. He assured the brokerage fraternity earlier in the year that his company will meet the new capital base of N10 billion. Those who cannot meet their obligations have no other option than to embrace mergers and acquisition to scale through the deadline.

Source: The Guardian June 08, 2020 03:31 UTC