Nigerian insurance companies, between June 2020 and September 2021, saw their assets increased by 16%. This is according to data obtained from the Central Bank of Nigeria (CBN) on ‘Insurance sector (general and life) consolidated balance sheets) for last year’s Q3.
As read in the data, the sector’s total assets rose by N228.24 billion or 16% from N1.8 trillion in June 2020 to N2.09 trillion as of September 2021.
Similarly, the industry’s assets rose from N1.16 trillion as of the end of December 2017 to N1.26 trillion and N1.45 trillion as of the end of December 2018 and 2019, respectively.
What you should know
It would be recalled that the industry regulator, the National Insurance Commission (NAICOM), had in June 2020, introduced new and segmented minimum paid up share capital requirements for Nigerian insurance companies.
In a circular dated June 3, 2020, NAICOM mandated underwriters to meet the deadline for the first phase of the recapitalisation exercise, which was slated for December 31, 2020. The final deadline was September 30, 2020.
Life insurance companies were ordered to raise their capital from N2bn to N4bn at the end of the first phase and N8 billion at the end of the second phase.
General insurance companies were ordered to increase their capital from N3 billion at the end of the first phase and N5 billion at the end of the second phase.
While composite underwriters were ordered to raise their capital from N5 billion to N9 billion at the end of the first phase, and to N18 billion at the end of the second phase, the reinsurance firms were ordered to raise their capital from N10 billion to N12 billion at the end of the first phase, and to N20 billion at the final phase.
