The National Insurance Commission (NAICOM) has concluded Nigeria’s insurance industry recapitalisation exercise, clearing an additional seven companies and bringing the total number of compliant firms to 50.
This was confirmed in a statement released by NAICOM on Thursday, August 13. The statement contains a list of seven more companies that have met the new minimum capital requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
This final batch brings the total to 48 insurance companies and 2 reinsurance companies.
The newly approved firms are Non-Life: emPLE General Insurance Limited, Sovereign Trust Insurance Plc, Alliance & General Insurance Plc, Guinea Insurance Plc, Regency Alliance Insurance Plc
Life: emPLE Life Assurance Limited, Tangerine Life Insurance Limited.
“With this development, forty-eight (48) insurance companies and two (2) reinsurance companies have been confirmed and verified as compliant with the Minimum Capital Requirements stipulated under NIIRA 2025 and applicable insurance laws and guidelines issued by the Commission, thereby bringing the Nigerian insurance industry recapitalization exercise to a successful conclusion,” NAICOM stated.
NAICOM had earlier cleared 43 firms (41 insurers and two reinsurers) and said it was reviewing the remaining firms. The seven companies join the other ones previously confirmed by NAICOM as having successfully met the new capital thresholds following the verification of their recapitalisation efforts.
Pinnacle Daily reports that about six firms did not succeed with the insurance recapitalization exercise.
They include Universal Insurance, Staco Insurance, Nigeria Re, NICON, Royal Exchange Prudential Life and Goldlink.
The recapitalization exercise, which followed the enactment of the NIIRA 2025, was geared towards strengthening the capital base of Nigeria’s insurance industry and improving the capacity of insurers to underwrite larger risks.
The recapitalisation has not been without controversy. Two firms, NICON Insurance and Nigeria Reinsurance Corporation, have taken NAICOM to court to challenge aspects of the process. The Federal Ministry of Finance has intervened, directing NAICOM to suspend the enforcement of disputed charges and directives pending the resolution of the firms’ petitions.
Companies that failed to meet the new capital thresholds now face regulatory action. The licence for Goldlink Insurance Plc has reportedly been revoked, with the company now undergoing the winding-up process.
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With the recapitalisation phase complete, NAICOM has signalled its next major initiative, which is the implementation of a Risk-Based Capital (RBC) framework. This, it said, will align insurers’ capital levels more closely with the risks of their business portfolios.
Industry experts note that the successful completion of the recapitalisation programme and the issuance of new licences mark a significant milestone, though the resolution of ongoing disputes and the transition to risk-based supervision will be critical next steps for the industry.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X