As the Nigerian economy enters 2017 with various projections from the Federal Government and organised private sector (OPS) for a way out of the economic recession, 17 insurance firms are set to lose their operational licences over what is considered as weak capital bose within the sector.
This was disclosed in a recent edition of the Nigeria Insurers Association’s Digest released for the year 2017’s insurance industry and obtained by The Tide correspondent.
According to the publication, seven of these firms already have their capital base eroded below the statutory minimum requirement while the remaining 10 firms have their capital slightly above the minimum required capital margin.
In December 2015, the insurance industry regulator, the National Insurance Commission (NAICOM) stipulated and directed insurance firms to recapitalise their financial operating capital base within non-life insurance firms mandated to raise their shareholders-fund to N3 billion, life insurance operators N2 billion, composite N5 billion and reinsurance firms N10 billion.
The report indicated that the firms which funds are slightly above the minimum required capital include among others Sterline Assurance Nigeria Limited (capital base of N3.1 billion), Staco Insurance Plc (having a capital base of N3.17 billion). Equity Assurance Plc (N3.43 billion), and Capital Express Assurance Limited (N2.06 billion).
Meanwhile, the seven insurance firms whose capital presently fall below statutory requirement are Standard Alliance Life Company Limited with shareholders funds of N720.92 million as against the NAICOM’s statutory recapitalisation base of N2 billion, International Energy Insurance Plc (N1.5 billion), Investment and Allied Insurance Plc (N955.26 million) against N2 billion, Unic Insurance Plc N2.70 billion against N3 billion and Springlife Assurance Plc N351.12 million as against N2 billion recapitalisation capital base.
Source: The Tide