Prudential Zenith Life Insurance says it has raised its authorised share capital to N5 billion, surpassing the new minimum capital requirement of N4 billion by Dec. 31 set by the National Insurance Commission (NAICOM).
Mr Chuks Igumbor, Managing Director and Chief Executive Officer of the firm said this in a statement on Tuesday in Lagos.
“We have met and exceeded the minimum requirement of the Dec. 31, 2020 recapitalistion deadline set by NAICOM .
“We are positioned to meet the additional capital requirement of N8billion well ahead of the Sept. 30, 2021 deadline, ” he said.
According to him, the seamless recapitalisation effort is hinged on the enormous financial strength and support from the company’s key shareholders.
The managing director said that the firm, with this, was poised to emerge stronger with greater capability to serve its customers and to continue to grow its business.
Prudential Zenith Life Insurance Limited is part of Prudential Plc, one of the oldest and strongly capitalised life insurance companies in the world.
It provides a range of insurance and investment-linked savings products designed to suit corporate and individual customers’ budgets.
The company seeks to remove uncertainty from life’s big events, providing customers with the freedom to face the future with greater confidence.
The News Agency of Nigeria (NAN) reports that the NAICOM had directed that insurance companies pay 50 per cent of the minimum paid-up capital while Re-insurance companies are expected to pay 60 per cent by Dec. 31, 2020.
In the segmentation, Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.
General Insurance business with existing minimum paid-up capital of N3 billion is expected to pay a minimum paid-up capital of N5 billion by Dec. 31, 2020 and N10 billion by Sept. 30, 2021.
Composite Insurance business with existing minimum paid-up capital of N5 billion is expected to pay a minimum paid-up capital of N9 billion by Dec. 31. 2020 and N18 billion by Sept. 30, 2021.
Reinsurance business with existing minimum paid-up capital of N10 billion is expected to pay a minimum of N12 billion by Dec. 31, 2020 and N20 billion by Sept. 30, 2021.
Meanwhile, the House of Representatives has called on NIACOM to suspend the proposed Dec. 31, 2020 deadline for the first phase.
The House resolution followed a motion of urgent public importance sponsored by Mr Benjamin Kalu on the need to suspend the proposed recapitalization in view of the pandemic and the recession being experienced in the country.