Market News
Recapitalisation pressure mounts as 8 insurers chase N132bn - DAILY TRUST
By Peter Moses
At least eight underwriting firms have set out to raise a combined N132.5billion capital to meet up with the mounting recapitalization deadline of July 31, Daily Trust reports.
The insurers include Sovereign Trust Insurance, Linkage Assurance, Guinea Insurance, Veritas Kapital Insurance, SUNU Assurances, Lasaco Assurance Plc, Regency Alliance Insurance Plc and International Energy Insurance Plc.
Daily Trust reports that insurance companies had been given twelve calendar months ending July 2026 to comply with the new minimum capital requirement prescribed by the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
The directive confirmed in a circular dated August 13, 2025 sent to all Insurance and Reinsurance Companies in Nigeria explained that the recapitalisation exercise had commenced from July 31, 2025 date of enactment of the Act.
According to the NIIRA 2025, the minimum capital base for non-life insurers has been raised to N15 billion, while the capital requirement for life insurance firms is now at least N10 billion.
Reinsurance companies got the steepest increase, with their capital threshold now pegged at N35 billion.
The National Insurance Commission (NAICOM) in November last year hinted that it had completed its review of the recapitalisation proposals submitted by insurance companies.
The Commissioner for Insurance/CEO of NAICOM, Olusegun Ayo Omosehin, at the 2025 Insurance Directors’ Conference in Lagos, with the theme: “Navigating the New Insurance Landscape: Strategies for NIIRA 2025 Compliance and Growth,” in Lagos, said all the insurance firms have submitted their recapitalisation plans as of the September 30 deadline.
He said reviews have also been completed as the commission will soon begin to communicate the insurers on the outcomes.
“Reviews of the plans have been completed, and the Commission will commence official communication to each company, indicating the outcome of the review of the Progress Report and also provide guidance and maintain open communication with operators to ensure smooth implementation of the recapitalisation exercise.
“Under the leadership of President Bola Ahmed Tinubu, Nigeria is undergoing a bold economic transformation aimed at achieving a $1tn economy by 2030. The insurance industry is expected to play a pivotal role in this journey, serving as both a shock absorber and a growth catalyst,” he said.
He said NAICON had embarked on interagency collaboration in order to meet the deadline and ensure a transparent process.
He reiterated that the enactment of NIIRA 2025 marked a pivotal moment and “a comprehensive blueprint to reposition the insurance sector as a key driver of economic growth and social protection.”
