The Federal Government has directed all insurance and reinsurance companies in the country to submit their recapitalization plan to the National Insurance Corporation (NAICOM) on or before August 20, 2019.
The plan, it said, should include, among others, the capital status of each company based on earlier circular on minimum paid up share capital policy for insurance and reinsurance companies in Nigeria dated May 20, 2019, as at the last audited financial statements.
Also, the recapitalisation plan should include the insurance and reinsurance companies’ board resolution on how to comply with the directives. This is contained in a circular issued by the National Insurance Commission (NAICOM) with number: NAICOM/DPR/CIR/25 – 02/2019, dated July 23, 2019.
The circular signed by the Director, Policy & Regulation Directorate of National Insurance Commission, Mr. Pius Agboola, also states that detailed action plan on how the funds for the recapitalisation are to be sourced with timelines and deliverables should be submitted.
It directed companies intending to seek funds from the capital markets to submit their plan of action on a file-and-use basis. In the same vein, the circular urged companies that either intend to merge or acquire another to submit their proposal after which they must comply with Sections 30 and 31 of the Insurance Act 2003.