In continuation of the recapitalisation exercise of Insurance and Reinsurance Companies in Nigeria , the National Insurance Commission (“NAICOM” or the “Commission”) on 17 August 2020 issued a Circular No NAICOM/DPR/CIR/25-05/2020 (the “Circular”) to convey its directive on the minimum paid up share capital policy for insurance and reinsurance companies in Nigeria and provide a timeline for compliance with Phase I of the recapitalisation, ending on 31 December 2020.
For Private Placements, NAICOM indicated that insurance and reinsurance companies may offer more than 30% of the existing issued and fully paid shares, following clarification obtained by the Commission from the relevant regulatory agency.
NAICOM also directed that effective from the end of August 2020, Recapitalisation Progress Reports are now to be submitted monthly, and no later than 5 (five) working days after the end of each month.
A schedule of the timeline and activities for compliance with Phase 1 of the Recapitalisation Exercise (ending 31 December 2020) is set out below:
