Five insurers lead industry chart on share capital

Chiamaka Ajeamo

With the insurance sector recapitalisation drawing closer, insurance firms are fighting the greatest battles of their lives to meet the deadline now set for  December 31 2020.

As insurers run around to source funds to meet the required minimum paid-up share capital to enable them stay in business report has disclosed the insurance companies leading in terms of share capital from 2018.

Data sourced from the Nigerian Insurers Association (NIA), has revealed that African Alliance Insurance Plc, with N10.29 billion share capital, topped the industry’s chart in 2018 while Leadway Assurance Limited, took the second place with N10 billion as Universal Insurance Limited, occupied the third position with N8 billion. Other industry leaders include Allianz Nigeria Insurance Plc, with N7.82 billion and Cornerstone Insurance Plc, which has N7.36 billion to occupy the fourth and fifth positions respectively.

Following the first five industry leaders are  Sunu Assurance Plc, N7 billion; Veritas Kapital Assurance Plc, N6.93 billion; Wapic Insurance Plc, N6.69 billion; FBNInsurance Limited, N5.36 billion and Axa Mansard Insurance Plc, N5.25 billion.

Those at the base of the chart are; Mutual Benefits Life Assurance Limited, N250 million; International Energy Insurance Plc, N642 million; Metropolitan Life Insurance Nigeria Limited, N1 billion and Zenith General Insurance Company Limited, N1.45 billion.

The National Insurance Commission (NAICOM) had in 2019 directed  insurance and reinsurance firms to shore-up their minimum paid-up share capital policy. Life Insurance companies were mandated to beef up teir capital from N2 billion to N8 billion; general business operators from N3 billion to N10 billion; composite business, N5 billion to N18 billion and reinsurance, N10 billion to N20 billion.

According to the Director, Policy and Regulation Directorate, NAICOM, Pius Agboola, the mandate applies to all insurance and reinsurance companies, with the exception of Takaful operators and microinsurance companies.