By Dipo Olowookere
The National Insurance Commission (NAICOM) has directed insurers and reinsurers operating in Nigeria to submit their recapitalisation plan on or before Tuesday, August 20, 2019.
In a circular signed by Mr Pius Agboola, the Director in charge of Policy & Regulation Directorate at NAICOM, the insurance companies must in the plan categorically state their capital status based on an earlier circular issued in May 20, 2019, the the agency had announced a recapitalisation policy for the industry. The agency noted that this capital status would be based on the last Audited Financial Statements.
It further said the plan should include a resolution of the board on how the funds for the recapitalisation would be sourced with timelines and deliverables.
“Companies intending to seek funds from the capital markets are required to submit their plan of action on a file-and-use basis.
“Companies that intend to merge or acquire another should submit their proposal after which they must comply with Section 30 and 31 of the Insurance Act 2003,” the regulatory document seen by Business Post emphasised.
In addition, NAICOM said it “shall review and provide responses on the submitted Recapitalization Plans on or before 17th September 2019” stressing that, “The review may require meeting with the board and management of each of the insurance company on its recapitalisation plan.”
“The commission is engaging with other regulatory bodies for possible palliatives in addition to those being considered by the commission,” the circular said.
Adedapo Adesanya