BY NKECHI NAECHE-ESEZOBOR—Following the successful conclusion of the Nigerian insurance industry recapitalisation exercise, 48 underwriting firms and two reinsurance companies scaled National Insurance Commission (NAICOM), minimum capital requirements as stipulated by NIIRA 2025.
While industry stakeholders have applauded the commission for a successful exercise, market observers remain surprised by the unexpected survival of some underwriters previously perceived as unviable.
Companies such as Fortis Global Insurance Plc Industrial And General Insurance (IGI), and Alliance & General Insurance PLC (A&G) successfully met NAICOM’s minimum capital requirements. While the likes of Universal Insurance Plc and STACO Insurance failed to meet the regulatory deadline.
Explaining the dynamics behind this, the immediate past President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Prince Oguntade, disclosed that strategic capital injections and corporate governance shifts saved several struggling firms.
According to him in most of those cases, fresh funds are being injected into management, and there is a lot of new capital entering the system,” Oguntade stated. “People are beginning to realize that insurance—much like banking—is being run by sound principles.
He noted that NIIRA 2025 and broader regulatory reforms have reshaped investor perception, positioning the sector as a highly lucrative asset class.
He said “the Insurance Act has brought so many critical issues to the fore. When you review the legislation, you realize that insurance is essentially the ‘new oil.’ As a result, many companies that previously suffered from poor management or inadequate premium collection practices are starting fresh and seeking new growth opportunities.”
Addressing why some prominent companies failed to…
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