NAICOM writes troubled insurance firms

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has written an administrative letter to insurance companies that are presently undergoing financial challenges, Inspenonline reports.

It was gathered that the letter detailed how the firms could manage their funds to enable them navigate their maladies.

The firms written, joined others that are under the management of the commission, which activities are keenly monitored by NAICOM.

Sources at the commission, told Inspenonline that the steps were taken to save the firms from collapse.

One of them, said after the commission published the accounts of insurance companies, those with problems were identified and confronted with issues observed in their reports and mandated on things to do to improve their performance.

Inspenonline had exclusively reported that 12 insurance companies urgently 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 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.

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