By Adedapo Adesanya
Prudential Zenith Life Insurance has revealed that it has raised its authorised share capital to N5 billion, surpassing the new minimum capital requirement of N4 billion by December 31 set by the National Insurance Commission (NAICOM).
The Managing Director and Chief Executive Officer of the firm, Mr Chuks Igumbor, said this in a statement on Tuesday.
“We have met and exceeded the minimum requirement of December 31, 2020, recapitalisation deadline set by NAICOM.
“We are positioned to meet the additional capital requirement of N8 billion well ahead of the September 30, 2021, deadline,” he was quoted as saying in the statement.
According to him, the seamless recapitalisation effort was hinged on the enormous financial strength and support from the company’s key shareholders.
The managing director said that the firm, with this, was poised to emerge stronger with greater capability to serve its customers and to continue to grow its business.
Prudential Zenith Life Insurance Limited is part of Prudential Plc, one of the oldest and strongly capitalised life insurance companies in the world.
It provides a range of insurance and investment-linked savings products designed to suit corporate and individual customers’ budgets.
The company seeks to remove uncertainty from life’s big events, providing customers with the freedom to face the future with greater confidence.
Recall that NAICOM had directed that insurance companies pay 50 per cent of the minimum paid-up capital while Re-insurance companies are expected to pay 60 per cent by December 31, 2020.
In the segmentation, life insurance business, which the company belongs, with existing minimum paid-up capital of N2 billion is expected to have a minimum paid-up capital of N4 billion by December 31, 2020, and N8 billion by September 30, 2021.
General insurance business with existing minimum paid-up capital of N3 billion is expected to get a minimum paid-up capital of N5 billion by December 31, 2020, and N10 billion by September 30, 2021.
Composite insurance business with existing minimum paid-up capital of N5 billion is expected to have a minimum paid-up capital of N9 billion by December 31, 2020, and N18 billion by September 30, 2021.
Reinsurance business with existing minimum paid-up capital of N10 billion is expected to get a minimum of N12 billion by December 31, 2020, and N20 billion by September 30, 2021.
Aduragbemi Omiyale