26 underwriters get clearance for recapitalisation
Following the directive to insurance companies to submit their recapitalisation plans, 26 underwriters have so far received a “No Objection” approval.
By this, they are now ready to proceed with their recapitalisation, as they have met the initial requirements in their work plan to shore up these capital base.
In a document made available to The Guardian by the Head, Commissioner for Insurance Directorate, Reseal Salami, the regulator said the approval was in keeping with the recapitalization roadmap.
Salami said NAICOM has communicated the individual companies on their positions, after it received plans of 47 insurers and two reinsurers.
The document showed that the plans of 17 companies were corrected and advised to resubmit the new plans, using paid-up capital and not shareholders fund.
Similarly, four companies do not have the requisite 2018 financial statements and are thus, advised to review their plans of using IPO.
Still, one company is said to have litigation issues and has been advised to resolve them as soon as possible to enable it progress.
While the names of the affected companies were not given, three others are yet to submit their recapitalisation plans, as NAICOM is resolved to adhere to the recapitalisation roadmap towards achieving its desired objectives in the best interest of all stakeholders.