NAICOM Clears 43 Insurers After Recapitalisation Exercise, Eight Others Under Review

Nigeria's insurance industry has entered a new phase after the National Insurance Commission (NAICOM) announced the successful completion of its nationwide recapitalisation programme, approving 43 insurance and reinsurance companies that met the new minimum capital requirements.

The exercise, which lasted 12 months, was carried out under the Nigerian Insurance Industry Reform Act (NIIRA) 2025, signed into law by President Bola Tinubu in July 2025. According to NAICOM, the initiative is expected to strengthen the financial health of insurance companies and position the sector to play a larger role in supporting Nigeria's long-term economic development.

Following a comprehensive review, verification, and validation process, NAICOM confirmed that 43 insurance and reinsurance companies successfully complied with the new capital requirements.

The approved companies include operators across the non-life, life, composite, and reinsurance segments of the insurance industry.

Among the compliant firms are AIICO Insurance Plc, AXA Mansard Insurance Plc, Leadway Assurance Company Limited, Cornerstone Insurance Plc, Custodian Life Assurance Limited, Heirs General Insurance Limited, Heirs Life Assurance Limited, NEM Insurance Plc, Prudential Zenith Life Insurance Ltd, Stanbic IBTC Insurance Limited, Coronation Insurance Plc, Continental Reinsurance Plc, and FBS Reinsurance Limited, alongside several other licensed operators.

NAICOM also disclosed that eight additional insurance companies submitted evidence of compliance shortly before the regulatory deadline.

The commission said these firms are currently undergoing final verification and regulatory assessment, with decisions expected within 14 days.

According to NAICOM, the recapitalisation exercise is designed to build a stronger, more resilient insurance industry capable of underwriting larger and more complex risks across key sectors of the Nigerian economy.

The regulator said better-capitalised insurers will be in a stronger position to meet policyholder obligations, absorb economic shocks, support infrastructure projects, and compete more effectively in regional and international markets.

The commission added that the exercise has also helped attract both domestic and foreign investment while improving investor confidence in Nigeria's insurance sector.

NAICOM said the recapitalisation process was implemented under detailed regulatory guidelines covering eligible capital, acceptable assets, verification procedures, and supervisory standards to ensure transparency throughout the exercise.

The strengthened capital base will also allow the regulator to deepen its risk-based supervision framework, ensuring that each insurance company's capital remains aligned with the size and complexity of its operations.

The commission reaffirmed its commitment to consumer protection, sound corporate governance, financial inclusion, and continued modernisation of the insurance industry.

Insurance plays a critical role in protecting businesses, households, and investments against financial risks. A stronger and better-capitalised insurance sector is expected to improve public confidence, enhance claims-paying capacity, attract new investment, and increase the industry's contribution to Nigeria's economic growth.

With most operators now meeting the new capital requirements, the focus is expected to shift toward expanding insurance penetration, improving service delivery, and supporting larger commercial and infrastructure projects across the country.