2020-06-03 (2) up circulars... · 2020. 6. 5. · title: 2020-06-03 (2) created date: 6/3/2020...

NATIONAL INSURANCE COMMISSIONHEAD OFFICE: Plot 1239 Ladoke Akintola Boulevard Garki II, Abuja, P.M.B. 457, Garki Abuja, Nigeria. :09-8756021

E-mail: info@naicom.gov.ng, Website: www.naicom.gov.ng

CIRCULAR NO: NAICOM/DPR/CIR/25-Q4/2020DATE: JUNE 03, 2020TO: ALL INSURANCE AND REINSURANCE COMPANIES

SEGMENTATION OF MINIMUM PAID UP SHARE CAPITAL REQUIREMENT FORINSURANCE COMPANIES IN NIGERIA

1. We refer to earlier Circulars referenced NAICOM/DPR/CIR/25/20 19 dated May 20, 2019 whichintroduced the new capital requirement for Insurance Companies in Nigeria, andNAICOM/DPR/CIR/25-Q3/20 19 dated December 30, 2019 which extended the deadline forrecapitalization.

2. The incidences of COVID-19 Pandemic has made it difficult to proceed with the 31st December,2020 recapitalization deadline. A review of the recapitalization deadline therefore becameimperative in order to mitigate likely negative consequences of the pandemic on the exercise.

3. The Commission hereby extend and segment the recapitalization process into two phases asfollows:a. 50% of the Minimum Paid-Up Capital for Insurance and 60% for Reinsurance shall be met

by 31st December, 2020;b. Insurance Companies are required to fully comply with the approved Minimum Paid-Up

Capital not later than 30th September, 2021;c. The segmentation is as indicated in the table below:

Class of Existing I Minimum Paid-Up I Minimum Paid-Up .SIN Minimum . Capitalby31stDec.2020 i Capital by 30th Sept. 2021 jBusiness . I 'Paid-Up Capital I (lstPhase) , {2ndPhase ) JLL-+-k.ife N2 billion' N4 billion N8 billion __IUL_ L~eneral___ _ _N3 billion N5 billion N10 billion I~~=uf~~:~:~~e--~%b~nt~n----'-------'_~~2b~lill~~------~-=-:~~-~~----'-.=j

4. Insurance Companies that failed to satisfy the required minimum paid-up capital by the end of31st December, 2020 may be restricted on the scope of businesses they will transact.

5. Insurance Companies must fully comply with the required minimum paid-up capital at the endof the Recapitalization Exercise on 30th September, 2021.

6. All other provisions in the previous Circulars are sustained.

LAGOS CONTROLOFFICE:Alagbon, Ikoyi Road, Ikoyi, P.M.B.80144,VI Lagos. ENUGUZONAL OFFICE: No 1 epeKANO ZONAL OFFICE: 6B Ahmadu Bello Way, Kano, ILORINZONAL OFFICE: Federal Mortgage Bank House, Asa

PORTHARCOURTZONAL OFFICE: NO.8 Ada George Road, Off NTANguobe Port Harcourt,

7. All Insurance Companies are advised to comply with the provisions of this circular.

8. References to Insurance Company in this Circular include Reinsurance Company except wherethe difference is specifically stated.

Director (Policy & Regulation)For: Commissioner for Insurance