FBN Insurance on Monday said it had enough money in its reserve to meet up with the June 2020 recapitalisation deadline given to all insurance companies by the National Insurance Commission (NIACOM).
Mr Valentine Ojumah, Managing Director/Chief Executive Officer (CEO), FBN Insurance disclosed this in an interview with the News Agency of Nigeria (NAN) in Lagos.
“As at the end of December 2018, we already had more money in our reserve to recapitalise FBN Insurance.
“As at that time, we already had over N5 billion capitalised, so all we need is just about N3 billion, which is not a problem at all.
“We are just waiting for the deadline, the money is on the ground and even the regulators and the entire insurance market is aware that we have the money,” he said.
According to him, FBN Insurance is playing a very important role in the return of investment of all shareholders of First Bank holding as a financial service group.
He said the Insurance company was moving in the right direction with an annual incremental addition to the FBN group Permanent Virtual Circuit (PVC)
“We are actually the most profitable insurance company in Nigeria and that is not going to change in the near future,” Ojumah said.
The Managing Director hinted that the group had also improved its system and upgraded to the 21st-century insurance technology demand, to meet up with the needs of its customers.
The News Agency of Nigeria reports that NAICOM, in the exercise of its statutory powers and regulatory functions, on May 20, reviewed the minimum paid-up share capital requirement for all classes of insurers, i.e Insurance and Reinsurance companies.
The directive was with the exception of Takaful operators and Micro-insurance companies doing business in Nigeria.
Following the reviewed minimum capital requirement, the existing minimum paid-up capital share of Life Insurance business was reviewed and raised from N2 billion to N8 billion.
General Insurance business was raised from N3 billion to N10 billion, Composite business was raised from N5 billion to N18 billion and Reinsurance business was raised from N10billion to N20 billion.
The new paid-up share capital requirement takes immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in Nigeria.
However, existing insurance and reinsurance companies are required to fully comply with the new minimum capital requirement not later than June 30, 2020.