Towards a decline in the number of insurance companies in Nigeria

The National Insurance Commission (NAICOM) has required insurance companies to increase their minimum paid-up capital. Several mergers and acquisitions operations are expected.

These would halve the number of companies from 59 to 25 by the end of June 2020, date on which the new regulations will come into force.

According to an analysis conducted by Coronation Merchant Bank with insurance companies:

• 37% of insurers will be able to meet the new capital requirements
• 25% will reach 75% of the new capital threshold
• 11% will have 50% of the minimum capital required
• 27% will have less than 50% of the minimum capital required

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