These are not the best of times for many Insurance CEOs right now. Many of them are worried at the new policy introduced by the Insurance authorities which requires that they top up their existing minimum paid-up capital.
Insurance operators are clamouring for the extension of the recapitalization deadline to December 31, 2020 from September 30, 2021. They also want it waived, the first phase of its segmented recapitalization for the insurance and reinsurance companies scheduled to end December 31, 2020, as directed by the regulator, the National Insurance Commission (NAICOM).
The reasons given by the operators for the extension of the deadline are proximately related to the huge impacts of the COVID-19 pandemic and #EndSARS protests on their insurance businesses.
Thus, they require enough time to fully settle back to their businesses to be able to pursue more aggressive recapitalization agenda to meet the commission’s set objectives by 31 December 2020.
The insurance companies are as well pleading with NAICOM to jettison the phase by phase segmentation of the exercise – with the first phase billed to elapse on December 31, 2020.
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This plea was made during a meeting of the Chief Executives of all the insurance companies with the Commissioner for Insurance at the industry’s professional forum in Abeokuta, Ogun State recently. The operators are more concerned and agitated, as it relates to meeting certain thresholds by 31 December 2020, and failing to meet them would make the commission restrict the scope of business insurance and reinsurance companies they can transact. In consideration of the economic realities, a number of the operators are even appealing to the commission to waive/step down the December 2020 deadline, to have ample time to rejig and revamp their businesses.
Life and General Insurance Companies were asked to shore up their existing minimum paid-up capital from N2bn and N3bn to N4bn and N5bn respectively by the end of December 2020, and meet the final minimum paid-up capital requirements of N8bn and N10bn respectively by the end of September 2021.
Composite companies and reinsurance firms were asked to shore up from existing minimum paid-up capital of N5bn and N10bn to N9bn and N12bn by end of December 2020 and to N18bn and N20bn respectively by the end of September 2021.
NAICOM extended the deadline for insurance and reinsurance companies to meet its new capital requirements to September 30, 2021 from December 31, 2020. NAICOM also mandated that 50 per cent of the minimum paid-up capital for insurance and 60 percent for reinsurance must be met by 31 December 2020. NAICOM stated that insurance companies that failed to satisfy the required minimum paid-up capital by December 31, 2020 may be restricted on the scope of business they would transact. Some insurance companies have been struggling to meet these requirements. There were also wide-spread speculations over possible mergers/acquisitions in the insurance sector.
Who are the big players in the industry?
(1) AIICO INSURANCE PLC
Aiico Insurance is one of the well recognised insurance companies in Nigeria. The company started in 1963 as a pension and asset management group. In addition, the outfit also focuses on general and special risks, life assurance, annuity and health insurance as well. Currently, AIICO is the 2nd largest insurance company in Nigeria.
Babatunde Fajemirokun Babatunde Fajemirokun is the Managing Director/Chief Executive Officer of AIICO Insurance Plc.
(2) CUSTODIAN AND ALLIED INSURANCE LIMITED
The company is a brand under Custodian Investment Plc. Their offers include, general and life insurance products.“Oluwole B. Oshin is Group Managing Director & Executive Director
(3) CONSOLIDATED HALLMARK
Consolidated Hallmark is one of the top ten general business and special risk companies in Nigeria. The company thrives on integrity and excellent service delivery. In addition, they provide premium risk management solutions to their clients. Interestingly, the company is the second insurance company to receive ISO 9001:2015 (Quality Management System Certificate).
Eddie A. Efekoha is Chief Executive Officer, MD & Director at Consolidated Hallmark Insurance Plc.
(4) LEADWAY ASSURANCE COMPANY LIMITED
Leadway began business in 1970 and is still one of the leading insurance companies in Nigeria. Over the years, the company is known for giving clients prompt claims settlement and innovative services. Leadway products include personal, SME, and corporate offers. Tunde Hassan-Odukale as the organization’s Managing Director/ CEO effective January 01, 2020.
(5) INDUSTRIAL AND GENERAL INSURANCE (LGI) PLC
IGI started business in January 1992 as a composite insurer offering life and general insurance as well as pensions and special risks. After four years of operation, IGI appeared as the first private insurance company in Nigeria to post N1billion premium income. In addition, IGI makes use of latest technology in their operation. You can get quotations and make payment directly from their website.“Yakubu Gowon (chairman), Remi Olowude (executive vice chairman & CEO).
(6) GOLD LINK PLC
Goldlink was registered on 15th April 1992 but, got licensed on 8th September 1993. The company has a head office in Lagos and 16 branches across the country. Their product ranges from engineering policies to group life, individual life insurance and many more. Kenneth Edore Egbaran is Goldlink Insurance Plc’s new MD/CEO
(7) NIGER INSURANCE PLC
Niger is another company in Nigeria involved in various classes of insurance business. Also, the company offers life and non-life coverage to its clients. At Niger, the product offers are flexible because they understand the diverse needs of their clients.“Edwin Igbiti as substantive Managing Director/Chief Executive Officer.
(8) NEM INSURANCE
NEM Insurance Plc started business in Nigeria in 1948 through the agency of Edward Turner & Co. Their products and services include corporate, personal and SME products. Tope Smart is GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER.
(9) MUTUAL BENEFITS ASSURANCE PLC
Mutual Benefits Assurance Plc was incorporated on 18th April 1995 as a private limited liability company but began operation on 2nd October 1995. The company offers life and general insurance business. Femi Asenuga is Chief Executive Officer, MD & Executive Director at Mutual Benefits Assurance Plc.
(10) STACO INSURANCE PLC
Staco was incorporated in Nigeria on 10th October 1991 but was licensed to carry out insurance business on 1st October 1994. The company also carries out general and special risk insurance. In addition, Staco Plc upholds integrity and hard work in their operations.“Mr. Oritsedere Samuel Otubu is the Chairman of STACO Insurance Plc.
(11) NICON INSURANCE
Nicon was originally owned by the Federal Government of Nigeria. It was established to assist the development of insurance companies in Nigeria and to ensure that the Federal Government’s assets and properties are protected. However, NICON was privatized in December 2005. Currently, the company has 40 branches and six regional offices. Muhammadu Bagudu Hussaini is the Md/CEO.
(12) LASACO ASSURANCE PLC
Lasaco was incorporated on 20th December 1979 but was granted a license on 7th July 1980. The company transacts life and non-life insurance.“Dr. (Mrs) Olateju Phillips, is Chairman of its Board of Directors.
(13) Royal Exchange Plc
Royal Exchange began operations in Nigeria in 1918 and was represented by Barclays Bank DCO. Thereafter, in 1921, Royal Exchange converted to a full branch of its then-parent company, Royal Exchange Assurance, London. Their products include Royal money guard, Royal Burglary protection, Royal fire protection, Royal transit plan and many more. Mr Olawale Omotunde Banmore is the GMD.
(14) GUINEA INSURANCE PLC
The company is also a well sought after company in Nigeria. They began operation on December 3rd, 1958. Their product covers general accident, engineering and special risk. Ademola Abidogun is MD/CEO for Guinea Insurance.
(15) ANCHOR INSURANCE PLC
Anchor is a non-life insurance outfit registered and licensed in October 1989, but started full operation in November, 1989. Currently, Anchor has expanded to 19 branch offices across the country. Augustine Osegha Ebose is the Managing Director/Chief Executive Officer of the company
(16) WAPIC INSURANCE PLC
Wapic provides general and life insurance policies at competitive rates for both individual and corporate clients. They started in 1958 and got licensed to carry out different classes of insurance including fire and special perils. Adeyinka Adekoya Chief Executive Director, MD & Executive Director.
(17) GREAT NIGERIA INSURANCE PLC
GNI has over 55years experience in underwriting, financial advisory and real estate investments. Also, GNI Plc employs state of the art information technology in its operation. Product offers include group life assurance, fire and special peril, workmen compensation and many others. “CECILIA OLAPEJU OSIPITAN – MD/CEO.
(18) ZENITH GENERAL INSURANCE COMPANY LIMITED
Zenith is another leading insurance institution in Nigeria. Their product ranges from corporate to personal and travel insurance. Zenith is committed to giving peace of mind and creating values to people in a world of uncertainties.“Kehinde Borisade, Managing Director/CEO.
19. STERLING ASSURANCE PLC
Sterling Assurance Plc was established in 1990 and offers all classes of general coverage. Importantly, their products are backed up by highly profiled reinsurance organisation like General Insurance Corporation of India (GIC), Africa Re, Continental Re, etc. Also, the company’s product includes: Fire and Special Perils, Burglary and House, Motor, Money Insurance and many more. FATAI KAYODE LAWAL, MANAGING DIRECTOR/CEO.
(20) FBN INSURANCE LTD
A company licensed to transact general insurance business in Nigeria. The company is jointly owned by FBN Holdings Plc and the Sanlam Group. They provide coverage for both individuals and corporates alike.“Val Ojumah, Managing Director/ Chief Executive Officer/ FBNInsurance Limited.
(21) STANDARD ALLIANCE INSURANCE COMPANY Limited
Standard Alliance is licensed by the National Insurance Commission (NAICON) to transact general and special risk business. The company got registered as a private limited liability company in July, 1981 under the name Jubilee Insurance Company Ltd. Their product covers, aviation, bonds, goods in transit and machinery breakdown as well. Richard Ododo is the Managing Director/Chief Executive Officer.