Recapitalisation: 15 insurers verified, 9 still under review
Fifteen Insurers Verified; Nine Under Review in Recapitalization Effort
By Rosemary Iwunze
As the recapitalization of the insurance sector progresses, 15 of the 24 firms approved by the National Insurance Commission (NAICOM) have completed their capital verification. With a total of 57 operating firms in the industry, this indicates that less than 40 percent are currently in a stable financial position. Meanwhile, the remaining 60 percent are at various stages of recapitalization, just over two months ahead of the July 31, 2026, deadline.
Of the initial group of 24 insurers, nine companies are still undergoing the verification process, demonstrating a gradual advancement toward compliance with regulatory standards. Additionally, five more insurance firms have formally requested NAICOM’s approval to begin their verification.
The verification process for the initial 24 insurers is being managed by four consulting firms: PwC Nigeria, KPMG, Deloitte, and Ernst & Young. NAICOM has engaged these firms to enhance transparency, credibility, and efficiency in the recapitalization effort.
Under the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025), insurance companies must increase their operating capital by the established deadline. Life insurance firms must raise their capital from 2 billion naira to 10 billion naira, while general insurers are required to raise theirs from 3 billion to 15 billion naira. Reinsurers need to increase their capital from 10 billion to 35 billion naira.
The sector comprises three reinsurance companies, 29 general insurers, 14 life insurers, and 12 composite insurers.
In a recent meeting, NAICOM reached out to 12 insurance companies that have made limited progress in the recapitalization process. NAICOM’s Commissioner for Insurance, Segun Omosehin, urged these firms to identify and address the challenges impeding their efforts. He warned that non-compliance could lead to deregistration by August.
Further investigations reveal that some companies may have to discontinue certain business lines to remain viable. Omosehin emphasized that extending the recapitalization deadline is beyond his authority, as it is delineated by the NIIRA 2025 and can only be amended through legislative action.
