Leading Insurance company, LASACO Assurance Plc, has met National Insurance Commission NAICOM’s December 31st deadline for insurance and reinsurance companies to recapitalize.
The nation’s insurance regulatory body (NAICOM), mandated insurance companies operating in the country to recapitalize so as to ensure a healthy and robust operations of the industry.
The recapitalization order set off palpitation among most players with strident calls for postponement of the deadline.
However, LASACO, which is partly owned by Lagos State government, has beaten the deadline following its N3.5bn capital injection.
The development has been music to the ears of the company’s shareholders.
In the meantime, the insurance companies are expected to meet at least half of the capital requirements by the end of 2020. The final deadline to fully recapitalise is September 2021.
NAICOM had segmented the recapitalization into two phases in the directive saying the fifty per cent of the minimum paid-up capital for insurance and 60 per cent for reinsurance shall be met by 31st December 2020 while insurance companies are required to fully comply with the approved minimum paid-up capital not later than 30th September 2021.