Nigeria’s National Insurance Commission gave underwriters an additional year to recapitalize as companies deal with the effects of the coronavirus pandemic.
The industry recapitalization program scheduled to end in 2020 must now be completed by September 2021, the agency said in emailed statement.
“The incidences of Covid-19 pandemic have made it difficult to proceed with the Dec. 31, 2020 recapitalization deadline,” it said. Following the extension, underwriters are expected to meet at least half of the capital requirements by year-end, the regulator said.
Nigerian authorities last year asked insurers wanting to combine life and property and casualty businesses to raise their capital to 18 billion naira ($46 million) from 5 billion naira, with the minimum for property and casualty businesses increased to 10 billion naira from 3 billion naira.
The requirement for life insurance is 8 billion naira, versus 2 billion naira, and that for reinsurance is 20 billion naira, compared with 10 billion naira.