Recapitalisation: Insurance Shareholders Say June 2020 Deadline Not Feasible

Shareholders of some Insurance companies on Monday has described the June 2020 deadline set by the National Insurance Commission ,NAICOM, to review its recapitalisation directive issued to the insurers as untenable.

The shareholders who spoke in Lagos,  urged NAICOM to review the deadline in view with the harsh economic situation in the country.

The National President, Constance Shareholders, Association of Nigeria, Shehu Mikail, stated that there was a need for an extension of the June 2020 deadline, as it did not seem feasible due to the present economic challenges.

Mikail said that once the economy improved, the directive could be implemented by the end of 2020.

He said that while the initiative was laudable, there could be problems with implementation, as the present time frame and procedure could affect the growth of the insurance companies.

He said, “Personally, I think it is good to have the recapitalisation to enable us have stronger insurance companies.

“But because the economy is not friendly at this period, most of the insurance companies would face this problem, as nobody is ready to invest their money.”

Reacting to the option of merger or acquisition by the insurance companies, Mikail noted that the interest of the board of the insurers would determine the possibility of such partnership.

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