Insurance Recapitalisation Ends As NAICOM Clears 43 Firms, Reviews Eight Others

The National Insurance Commission (NAICOM) has announced the successful completion of the insurance sector recapitalisation exercise, with 43 insurance and reinsurance companies meeting the new minimum capital requirements, while eight others are undergoing final regulatory verification.

The recapitalisation exercise, which lasted 12 months, was carried out pursuant to the provisions of the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu on July 31, 2025.

In a statement issued on Monday, the Commission described the completion of the exercise as a major milestone that would strengthen the financial capacity of insurance operators, enhance policyholder protection, and position the industry to play a greater role in Nigeria’s economic development.

According to NAICOM, the recapitalisation marks the beginning of a new era for the country’s insurance industry, creating a stronger, more resilient, professionally governed and policyholder-focused market.

“The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country,” the Commission said.

It noted that the recapitalisation process followed the implementation of NIIRA 2025, under which the Commission issued comprehensive guidelines detailing the new minimum capital requirements, eligible capital instruments, admissible assets, verification procedures, reporting obligations and supervisory expectations for operators.

NAICOM said the rigorous review, verification and validation process significantly strengthened the industry’s financial resilience while attracting substantial domestic and foreign investments.

“The verified outcome of the exercise indicates that 43 insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements.

“However, eight insurance companies that submitted evidence of compliance shortly before the statutory deadline are currently undergoing final verification and regulatory review. This would be concluded within fourteen days,” the Commission stated.

The regulator said the higher capital base would improve insurers’ capacity to underwrite larger and more sophisticated risks across key sectors of the economy, honour policyholder claims promptly, absorb emerging risks and support long-term investments, including infrastructure financing.

It added that the exercise would also strengthen the Commission’s risk-based supervisory framework by ensuring that regulatory capital remains aligned with the size, complexity and risk profile of each licensed operator.

NAICOM reassured policyholders, investors and other stakeholders that it would continue implementing the reforms contained in NIIRA 2025 while modernising the insurance ecosystem through innovation, technology and digitisation.

The Commission said it remained committed to strengthening consumer protection, promoting sound market conduct, expanding insurance penetration and building a globally competitive insurance industry.

It also pledged to provide regular updates on post-recapitalisation supervisory actions, the status of companies undergoing final verification, industry restructuring developments and the implementation of the Risk-Based Capital Framework.

NAICOM expressed appreciation to the Federal Government, shareholders, investors, insurance operators, professional bodies, development partners and other stakeholders for their support throughout the recapitalisation process.

“The successful completion of this recapitalisation exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance and stronger public confidence will make insurance work better for every Nigerian,” the Commission said.