NIA seeks NSE’s support for recapitalisation

The Nigerian Insurers Association (NIA) has implored the Nigerian Stock Exchange (NSE) to assist the insurance companies in their bid to meet the new capital level prescribed by the National Insurance Commission (NAICOM).

The Chairman of NIA, Tope Smart, during a courtesy visit to the NSE in Lagos, said that the commission had increased the capital requirements for insurance and reinsurance companies from N2 billion to N8 billion for life insurance companies, N3billion to N10billion for general business underwriters, N18 billion for composite insurers and N20 billion for reinsurance companies with a one year timeline for compliance.

The Controller, Corporate Communications, Human Resources and Administration of the NIA, Davis Iyasere, told The Guardian over the weekend that while addressing the Chief Executive of the Exchange, Oscar Onyema, and management of the Exchange, Smart solicited its support and other players in the capital market in the capital raising efforts.

Given a breakdown of the insurance companies in Nigeria, he noted that out of 59 insurance companies comprising 14 specialist life insurance companies, 28 General Insurance companies, 13 composite insurance companies, two takaful insurance companies and two reinsurance companies, 32 insurance companies are already listed on the Exchange.

He declared the association’s support for the exchange and welcomed the initiatives aimed at strengthening the cordial relationship existing between the association and the Exchange.

However, Onyema, commended the association for increasing its advocacy efforts and expressed joy at the increasing participation of the Insurance Companies on the floor of the exchange.

He described the insurance sector an important sector of the economy that is too critical to be ignored while promising to assist insurance companies in their bid to meet the new capital requirement.He listed some initiatives of the Exchange, explaining that the exchange will soon introduce some derivatives to take care of takaful insurance products, even as he urged the insurance companies to make use of its knowledge sharing platform in its capacity building and corporate governance training.

The Director-General of the association, Yetunde Ilori, commended NSE management team for the support so far, in releasing longer tenured fixed income instruments, which insurance companies can leverage on for greater value for their long term products.