NAICOM Clears 43 Insurers Under Nigeria's Insurance Recapitalisation

• NAICOM has completed Nigeria's 12-month insurance sector recapitalisation exercise.
• 43 insurers have met the new minimum capital requirements.
• The recapitalisation process involved a rigorous review and verification of financials.
• The adequately capitalised insurers are better positioned to support national economic growth.
• An additional eight insurance operators are currently undergoing final verification and regulatory review.

The successful completion of this recapitalisation exercise signifies a major step towards building a stronger, more resilient insurance sector in Nigeria.

The National Insurance Commission (NAICOM) has completed Nigeria's 12-month insurance sector recapitalisation exercise, clearing 43 insurers who have met the new minimum capital requirements. The exercise was undertaken in accordance with Section 15 of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and aimed to align with the administration's economic agenda of building a $1tn economy by 2030. The recapitalisation process involved a rigorous review, verification, and validation of insurance companies' financials, resulting in the successful clearance of non-life insurers such as Zenith General Insurance Company Limited and Custodian and Allied Insurance Limited. In the life insurance segment, companies like Heirs Life Assurance Limited and Prudential Zenith Life Insurance Ltd met the requirements. The composite insurers that satisfied the requirements include Leadway Assurance Company Limited and AIICO Insurance Plc. Continental Reinsurance Plc and FBS Reinsurance Limited were also confirmed compliant in the reinsurance category.

The recapitalisation exercise was guided by explicit regulatory directives issued by NAICOM to ensure an orderly, transparent, and verifiable transition. The Commission's Guidelines on the Implementation of Minimum Capital Requirements for Insurance and Reinsurance Companies in Nigeria defined eligible capital instruments, admissible assets, verification procedures, and supervisory expectations throughout the implementation window. The exercise was undertaken pursuant to Section 15 and other relevant provisions of NIIRA 2025, which was signed into law by President Bola Tinubu on August 5, 2025. The regulatory push has successfully enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence across the industry.

The successful completion of this recapitalisation exercise signifies a major step towards building a stronger, more resilient insurance sector in Nigeria. The adequately capitalised insurers are better positioned to support national economic growth, which may have implications for policyholders. This development represents a pivotal moment for the industry, signaling the beginning of a new era for insurance in the country. The regulator noted that an additional eight insurance operators are currently undergoing final verification and regulatory review, with outcomes expected within 14 days.

Lawyers and compliance officers should note that the successful completion of this recapitalisation exercise signifies a major step towards building a stronger, more resilient insurance sector in Nigeria. This development may have implications for policyholders, as the adequately capitalised insurers are better positioned to support national economic growth.

Source: Original reporting via National Insurance Commission