Recapitalisation: 15 insurers verified, 9 still under review

•5 more seek NAICOM approval

By Rosemary Iwunze

As the insurance sector recapitalisation exercise gathers momentum, about 15 firms have so far successfully undergone capital verification out of the 24 firms approved by the National Insurance Commission (NAICOM).

Total number of operating firms in the sector is 57 indicating that barely 40 percent of the sector operators can be said to be in comfortable position, while the remaining 60 percent are still in the various stages of recapitalization, just about two and half months to the deadline, July 31, 2026.

The remaining nine companies out of the first set of 24 are currently undergoing the verification process, indicating a gradual but steady progression toward meeting regulatory requirements.

However, Vanguard learnt that additional five insurance companies have formally written to NAICOM, seeking approval to commence their verification.

The first 24 insurers were distributed among four consulting firms, namely, PwC Nigeria, KPMG, Deloitte, and Ernst & Young, engaged by NAICOM to oversee the capital verification process.

NAICOM explained that the appointment of the four consultants is aimed at ensuring transparency, credibility, and efficiency in the recapitalisation exercise.

It will be recalled that following the signing of the Nigerian Insurance Industry Reform Act, 2025 (NIIRA 2025),   insurance firms were mandated to shore up their operating capital by July 31, 2026 and the deadline would not be extended.

Life insurance firms are mandated to shore up their operating capital from N2 billion to N10 billion. General insurance firms are to raise theirs from N3 billion to N15 billion. Reinsurance firms are to shore up their capital from N10 billion to N35 billion.

There are three reinsurance companies in the insurance sector, 29 general insurance companies, and 14 life insurance companies as well as 12 composite companies.

Meanwhile, Vanguard findings show that NAICOM has held a strategic meeting with about 12 insurance companies said to be largely motionless in the ongoing recapitalisation drive.

Speaking during the meeting, the Commissioner for Insurance, Mr. Segun Omosehin, directed the affected companies to disclose the challenges slowing down their recapitalisation efforts and offered guidance on how they could scale through.

Omosehin also charged the firms to intensify their momentum, warning that any company that fails to comply risks deregistration by August this year.

Meanwhile, further Vanguard investigations indicate that some of the companies involved may be forced to drop certain business lines to survive.

Speaking on the recapitalisation exercise, Commissioner for Insurance, Mr. Segun Omosehin said that it goes beyond his power as insurance commissioner to extend the deadline because it was stated by the Nigeria Insurance Industry Recapitalisation Act, NIIRA 2025, and cannot be shifted by any authority except with the amendment of the law.

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