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Due to Coronavirus, the National Insurance Commission (NAICOM) is to extend recapitalization deadline for Nigerian insurers and reinsurers.
Primarily set for June 2020, the deadline is extended to 30 September 2021. However, insurance companies are expected to hold 50% of the capital set by the regulator by 31 December 2020.
It is expected that by the end of June 2020, reinsurers will have to increase their capital to 60% of the required ceiling set at the end of September 2021.
New requirements set by NAICOM
| Class of business | Minimum avalable capital in June 2020 | Minimum required capital by 31 December 2020 | Minimum required capital by 30 september 2021 | |||
|---|---|---|---|---|---|---|
| In billion NGN | In billion USD | In billion NGN | In billion USD | In billion NGN | In billion USD | |
Life | 2 | 5,15 | 4 | 10,31 | 8 | 20,61 |
Non-life | 3 | 7,73 | 5 | 12,88 | 10 | 25,77 |
Composite | 5 | 12,88 | 9 | 23,19 | 18 | 46,38 |
Reinsurance | 10 | 25,77 | 12 | 30,92 | 20 | 51,53 |
It is noteworthy that NAICOM will be restricting the scope of activity of companies that do not comply with these requirements by the end of December 2020.