NAICOM Certifies Nigerian Insurance Companies As Solvent, Strong

NAICOM CEO, Mohammed Kari

By CLEMENT NWOJI, Abuja

The apex regulator of insurance sub sector of Nigeria’s economy, the National Insurance Commission (NAICOM), has certified all insurance companies operating in the country as strong and solvent.

NAICOM said that the solvency test of the financials of insurance companies in Nigeria showed that none of the companies has fallen short of the solvency provisions as provided by the extant laws.

This is contrary to the recent media reports which had suggested that five companies operating in Nigeria were in deficit of solvency regulatory requirement.

The Commission maintained that the report was not only false but also misleading as it is at variance with the existing regulatory requirements.

According to NAICOM in a statement by its Deputy Director/Head, Corporate Affairs, Salami Razaq, “For the avoidance of doubt, Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per centum of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid up capital whichever is greater.

“While not holding brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refutes this claim in its entirety. The five companies as mentioned in the publication are financially strong and solvent. With the benefit of hindsight, the report is not only false but misleading as the stated solvency ratios are at variance with the true position.

“Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws”

The Commission urged for verification of of information before publication to avoid misleading the publics.