Category Archives: Insurance
The National Insurance Commission (NAICOM) has released a new guideline for recapitalisation of insurance and reinsurance firms.
In a circular number: NAICOM/DPR/CIR/25-04/2020, dated June 3, 2020 and entitled: “Segmentation of Minimum Paid Up Share Capital Requirement for All Insurance and Reinsurance Companies in Nigeria”, the new guideline segments and extends the recapitalisation into two phases.
The acquisition follows a deal signed between FBN Holding (parent company of FBN Insurance and FBN General Insurance) and Sanlam which grants the South African company the ownership over the 65% stake held by FBN Holding in the two branches.
Leadway Assurance Nigeria plc said its claims paid to its policyholders rose from N33.9bn in 2018 to N38.5bn in 2019 financial period.
A statement from the firm said this was disclosed during the presentation of the company’s 2019 annual financial results at its 48th annual general Meeting via a virtual platform.
The non-performing loans of Nigeria insurance companies and other finance organisations granted by banks have dropped by N24.28bn.
Specifically, the loans dropped from N28.86bn in December 2018 to N4.58bn at the end of the 2019 financial year, according to the latest figures obtained from the National Bureau of Statistics.
The report also showed that the total non-performing loans in the banking sector stood at N1.05tn out of a total loan of N17.56tn as of the end of 2019.
Banking sector loans to the finance, insurance and capital market operators are about 7.4 per cent of the total loans in the sector.
As the underwriters beef up their capital to meet the new order, the National Insurance Commission has barred the regulated entities from borrowing money to meet their recapitalisation requirements.
NAICOM stated in a report on ‘Recapitalisation road map: Implementation, expectation and benefits’ that the features of paid-up share capital constituting the companies’ new capital in the sector’s ongoing recapitalisation would be absolute paid-up share capital, as distinct from solvency capital/capital fund/capital base.
The commission stated, “For the avoidance of doubt, and for an instrument to be treated as paid-up share capital, the following criteria among others must be satisfied.
“It must represent the most subordinate claim in liquidation of the insurer/ reinsurer; The investor is entitled to a claim, only on the residual assets that is proportional with its share of issued capital, after all senior claims have been paid in liquidation (such that it has an unlimited and variable claim, not fixed or capped claim);
“The principal is perpetual and never repaid outside of liquidation; distributions are paid out of distributable profit or retained earnings. There are no circumstances under which the distributions are obligatory; it must not be a loan on the company or margin facility whatsoever.”
Royal Dutch Shell on Thursday cut its dividend for the first time since the 1940s after a first-quarter loss – and warned virus-ravaged oil prices will take time to fully recover.
The Anglo-Dutch group sank into a $24-million ($29.5-million) net loss in the three months to March – when oil went into freefall on tumbling demand and a price war between producers Saudi Arabia and Russia
The National Insurance Commission (NAICOM) has extended the recapitalisation deadline for Insurance and Reinsurance Companies earlier slated for June 30, 2020 to December 31, 2020.
Out of the 58 insurance companies in the nation’s economy, seven have reached to their investors to mobilise a cumulative sum of N50 billion new capital to meet June 2020 recapitalisation deadline.While others are still fine-tuning strategies to beat the fast approaching deadline to shore up their share capital to a new threshold, analysts are projecting a mixed outcome.
Noting the trends in the global market in general and in the Insurance industry in particular the Managing Director, Prestige Assurance Plc, Dr. Balla Swamy has expressed the need to explore better distribution channels and technology to make insurance more accessible.
THE National Insurance Commission (NAICOM) has granted approval in principle (AiP) to Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance Company Limited as Composite Takaful operators to transact both family and general Takaful businesses in Nigeria.
According to NAICOM in a statement, this new development brings the total number of wholly Takaful operators to four, having earlier in 2016 granted licence to Noor Takaful and Jaiz Takaful respectively.
The Nigerian Council of Registered Insurance Brokers (NCRIB) has been urged to deploy technology drive penetration in the Nigerian insurance market.
This was disclosed at the 2019 Mid-Year Workshop of the Lagos Area Committee of brokers and other stakeholders in the industry in conjunction with global tech giants, Microsoft Nigeria in Lagos.