By Zainab Iwayemi
Prudential Zenith Life says it has raised its share capital to N5 billion, an amount that exceeds the minimum capital life insurers are supposed to meet by end of December, 2020, as stipulated by regulator, National Insurance Commission (NAICOM).
NAICOM had directed that insurers meet up 50 per cent to 60 percent of different categories of capital base by end December 2020 that are dependent on the insurance business they are involved in.
For life insurance underwriters, the new minimum capital required for them to operate in Nigeria is N8 billion. Having raised its capital to N5 billion, it means Prudential Zenith Life Insurance has met 62.5 per cent of the minimum capital requirement for life insurance business stipulated by NAICOM.
The recapitalization guideline from the regulatory authority expects that by now, insurance companies would have canvassed at least half of the new capital requirements for their different categories of insurance.
The requirement states that firms specialising in life, general and composite insurance are expected to have upgraded their capital base from N2 billion, N3 billion and N5 billion to N8 billion, 10 billion and N18 billion respectively, while reinsurance businesses are expected to have raised up to N20 billion as against the erstwhile N10 billion by the close of December 2020.
Chuks Igumbor, managing director and chief executive officer of Prudential Zenith Life, while speaking on the company’s recapitalisation achievement said: “We have met and exceeded the minimum requirement of the December 31st, 2020 deadline set by NAICOM and we are positioned to meet the additional capital requirement of N8 billion well ahead of the September 30th, 2021 deadline.
“This seamless recapitalisation effort is hinged on the enormous financial strength and support from our key shareholders. With this, the firm is poised to emerge stronger with greater capability to serve our esteemed customers and to continue to grow the business,” he added
As a provider of insurance and investment-linked savings products designed to suit corporate and individual customers’ budgets, Prudential Zenith Life Insurance Limited, a subsidiary of Prudential Plc is one of the oldest life insurance companies in the world that seeks to remove uncertainty from life’s big events by providing customers with the freedom to face the future with greater confidence.
Meanwhile, the court had earlier restrained NAICOM from enforcing its deadline on the recapitalisation for insurance and reinsurance companies. This came after the House of Representative asked NAICOM to waive the December deadline as a result of events that beclouded the economy and the insurance landscape in 2020.