Shareholders of 20 insurance companies have approved the recapitalisation plans of their firms.
The fund to be raised varies from one company to another, depending on current financial worth.
While some require just N2bn to recapitalise, others need between N5bn and N10bn, especially the composite ones, to get to the new benchmark.
The insurers, who are to raise a cumulative N100bn fresh capital to still be in business post-recapitalisation, utilised their 2018 and 2019 Annual General Meetings as well as Extra-Ordinary General Meetings to seek shareholders’ approval to proceed with their recapitalisation plans.
The concerned insurance firms that have remarkably progressed in their recapitalisation exercise, having secured regulatory and shareholders’ approvals, include Linkage Assurance, Consolidated Hallmark Insurance, Mutual Benefits Assurance, NEM Insurance, Leadway Assurance, Sunu Assurances, Anchor Insurance, Cornerstone Insurance and Wapic Insurance.
Others are African Alliance Insurance, Law Union & Rock Insurance, FBN Insurance, AIICO Insurance, AXA Mansard Insurance, Old Mutual Assurance, Sovereign Trust Insurance, Unitrust Insurance Company Limited, LASACO Assurance, Royal Exchange, Great Nigeria Insurance and Guinea Insurance.
The National Insurance Commission had earlier ordered insurance companies with composite licence to upgrade their capital base from N5bn to N18bn.
Life insurance firms are required to increase their minimum capital requirement from N2bn to N8bn, amounting to 400 per cent increase in their capitalisation.
