English
In 2017, five Nigerian insurers displayed a solvency ratio well below the regulatory standards set at 150%. They are AIICO Insurance (55%), First Bank Insurance (59.1%), Leadway Assurance (76%), NEM Insurance (93%) and Continental Nigeria (90%). These companies are struggling to honor contractual engagements, the National Insurance Commission (NAICOM) said.
Even though the solvency ratios of Mansard Insurance (132%) and that of Consolidated Hall Mark Insurance (116%) are below 150%, these companies remain creditworthy, according to NAICOM.
Prestige Assurance (385%), Wapic Insurance (283%), Law Union & Rock Insurance (225%) and Lasaco Insurance (204%) reported a solvency ratio well above 150%.
The solvency ratio is an indicator designed to measure the ratio between shareholder’s equity of the company and its engagement towards policyholders.
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