A new guideline for the recapitalisation of insurance and reinsurance firms has been released by the National Insurance  Commission (NAICOM)

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.

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The first requires 50 per cent of the minimum paid-up capital for insurance firms and 60 per cent for reinsurance firms to be met by December 31, 2020; while the second requires insurance firms to fully comply with the approved minimum paid-up capital not later than September 30, 2021.

The guideline is the third to be issued by the regulator since the insurance industry’s recapitalisation begun in May 2019 for an initial deadline of June 30, 2020, and the second deadline of December 31