Forty Three Insurance Firms Scale NAICOM’s Recapitalisation Hurdle

*Eight others undergoing final verification as regulator concludes review within 14 days

*Commission declares new capital regime will drive $1tn economy, usher stronger insurers to finance infrastructure, absorb larger risks, enhance insurance penetration

James Emejo in Abuja and Ebere Nwoji in Lagos

National Insurance Commission (NAICOM), yesterday, disclosed that 43 insurance and reinsurance companies had fully complied with its new minimum capital requirements. It was a landmark overhaul expected to transform the industry’s capacity to finance economic growth, protect policyholders, and mobilise long-term investment for President Bola Tinubu’s $1 trillion economy ambition.
The conclusion of the 12-month exercise marked one of the biggest structural reforms in the country’s financial services industry since the banking sector consolidation. It positioned the insurance industry to underwrite larger and more complex risks while strengthening confidence among investors, businesses, and policyholders.

The exercise was the country’s most ambitious insurance sector recapitalisation in decades.
In a statement, NAICOM said the recapitalisation exercise was undertaken pursuant to Section 15 and other relevant provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, which was signed into law by Tinubu on July 31, 2025.
Although 43 insurers and reinsurers were confirmed as fully compliant, the commission disclosed that eight insurance companies that submitted evidence of compliance shortly before the statutory deadline were still undergoing final verification and regulatory review, which it said would be concluded within 14 days.

The recapitalisation programme commenced shortly after the enactment of NIIRA 2025, with NAICOM issuing detailed implementation guidelines covering the new minimum capital requirements, eligible capital instruments, admissible assets, reporting obligations, verification procedures, and regulatory timelines.

Throughout the transition period, the commission stated that it carried out extensive reviews, verification, and validation of submissions from insurance operators to ensure a transparent, credible and orderly implementation process.
According to the commission, the exercise has significantly strengthened the financial resilience of insurance companies, attracted fresh domestic and foreign investments, and restored investor confidence in the sector.
NAICOM said the successful completion of the exercise signalled the beginning of a stronger, safer, and more resilient insurance industry capable of supporting strategic sectors of the economy through increased underwriting capacity and long-term investment financing.

It said stronger capital bases would enable insurers to settle policyholder claims more promptly, absorb emerging risks more effectively, participate in financing critical infrastructure, and compete more favourably within regional and international insurance markets.

The regulator also stated that the new capital regime provided a stronger foundation for the implementation of risk-based supervision, ensuring that regulatory capital is better aligned with the scale, complexity, and risk profile of licensed operators.
Beyond improving the financial health of insurers, the commission said the reform would deepen financial inclusion, expand insurance penetration, and reinforce the stability of the broader financial system.

The commission reiterated its commitment to strengthening consumer protection, promoting sound market conduct, and accelerating the digital transformation of the insurance ecosystem through technology and innovation.
It reaffirmed its commitment to continue to engage stakeholders while providing regular updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring, and implementation of the risk-based Capital Framework.
NAICOM expressed appreciation to the federal government, shareholders, investors, operators, development partners, and other stakeholders for their support throughout the recapitalisation process.
It described the exercise as “the foundation” for a new era of stronger institutions, improved governance and greater public confidence in insurance.

Under the new recapitalisation template, insurance companies were required to meet higher minimum capital thresholds, depending on their class of business.
The minimum paid-up share capital requirements for Life insurance companies was pegged at N10 billion, from N2 billion; General insurance was fixed at N15 billion, from N3 billion; Composite insurance (life and general) N25 billion, from N5 billion; and Reinsurance companies was raised to N35 billion, from N10 billion.

The companies confirmed by NAICOM as compliant with the minimum capital requirements are Zenith General Insurance Company Limited, Leadway Assurance Company Limited, Custodian Life Assurance Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, ALICO Insurance Plc, CHI Life Assurance Limited, Heirs General Insurance Limited, Fin Insurance Company Limited, Cornerstone Insurance Plc, and Mutual Benefits Assurance Plc.

Others include Heirs Life Assurance Limited, Tangerine General Insurance Ltd, Capital Express Indemnity Insurance Limited, Continental Reinsurance Plc, FBS Reinsurance Limited, Sanlam-Allianz General Insurance Nigeria Ltd, Prudential Zenith Life Insurance Ltd, Consolidated Hallmark Insurance Limited, and Stanbic IBTC Insurance Limited.

Equally fully compliant are Sanlam-Allianz Life Insurance Nigeria Limited, Sterling Assurance Nigeria Limited, AXA Mansard Insurance Plc, Unitrust Insurance Co. Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Ltd, NSIA Insurance Limited, Rex Insurance Limited, LASACO Assurance Plc, Linkage Assurance Plc, Anchor Insurance Company Ltd, Enterprise Life Assurance Company (Nigeria) Ltd, Sunu Assurances Nigeria Plc, KBL Insurance Ltd.

Others are International Energy Insurance Plc, Veritas Kapital Assurance Plc, NPF Insurance Company Ltd, Fortis Global Insurance Plc, Coronation Life Assurance Limited, Industrial and General Insurance Plc, Coronation Insurance Plc, Prestige Assurance Plc, and Great Nigeria Insurance Plc.