Increase of the minimum share capital of insurance companies

A law requiring an increase in the share capital of insurance companies could soon be promulgated in Nigeria. Nearly 40 of the 58 insurers on the market would be affected by this regulation, which would enter into force during the first quarter of 2017.

The level of capital could be adjusted by class of business. Small-capitalized insurers would then be forced to limit their activity to certain classes of business. Those authorized to underwrite energy, aviation or marine risks should, however, be endowed with a strong financial base.

Finally, the new law would result in a large wave of mergers and acquisitions in the country.

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