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Chuks Udo Okonta
Twelve insurance companies need to shore up their shareholders’ funds in 2018 to enable them play comfortably well in the highly competitive underwriting business.
According to 2016 Insurance industry financial reports published by the National Insurance Commission (NAICOM), these firms are operating below/slightly above the industry’s statutory shareholders’ funds.
In the last insurance industry recapitalisation, Non Life insurance firms were mandated to raised their shareholders’ fund to N3 billion; Life Insurance operators, N2 billion, Composite N5 billion and Reinsurance N10 billion.
Standard Alliance Insurance Plc, operating composite structure has N4.65 billion as against N5 billion; Guinea Insurance Plc, has N2.89 billion, as against N3 billion; International Energy Insurance N2.12 billion; Goldlink Insurance N-4.25 billion and Unic Insurance, N587.81 million.
Those slightly operating above the statutory fund are, KBL Insurance, N3.52 billion; Old Mutual General Insurance, N3.59 billion; Staco Insurance N3.76 billion; Sterling Assurance N3.49 billion; Capital Express, N2.16 billion; ARM LifeN2.75 billion and Wapic Life N2.27 billion.
Inspenonline learnt from sources in some of the firms, that their managements are already working out ways to shore up their capital.