Universal Insurance optimistic on N10billion re-capitalisation
Frontline insurance company, Universal Insurance Plc, has declared its total commitment to the task of securing the N10 billion recapitalisation target prescribed by the industry regulator, National Insurance Commission (NAICOM).
The company, reputed for its dominance in the general insurance service sector says it is very optimistic and confident to successfully cross the re-capitalisation hurdle with a target to become a financial force of reckon and one of the top ten leading players in the insurance market in Nigeria.
The Managing Director/CEO of the company, Ben Ujoatuonu, who disclosed this during a brief chat with MARKETING EDGE in Lagos, said the company was working assiduously and would remain focused to ensure that the re-capitalisation objective was realised.
The company boss who was rather unspecific about the strategy the company was adopting in its quest of attaining the recapitalisation target stated, however, that the company was considering several options of reaching the target, including the option of mergers and acquisitions.
Hinting that the option of going into a merger was possible he was, however, silent on disclosing which of the insurance outfits was being considered for the initiative.
The insurance industry regulator, NAICOM, had earlier on May 20, 2019 released a new circular titled “Minimum Paid-up Share Capital Policy for Insurance and Reinsurance Companies in Nigeria in which it required that all insurance companies that provide life insurance should increase their minimum paid-up share capital from two billion naira to N8billion. Companies that provide general insurance were required to increase their minimum paid-up share capital from N3 billion to N10 billion. In addition, companies that provide composite insurance and reinsurance were required to increase their minimum paid-up share capital from N5 billion and N10 billion respectively to N18 billion Naira and N20 billion respectively.
The circular comes into effect immediately and existing insurance and reinsurance companies are required to fully comply with the new minimum capital requirement by not later than June 30, 2020.
Universal Insurance Plc. is a leading name in the Nigerian insurance and financial services industry with over five decades of experience and operations in many states of the Nigerian Federation, including the Federal Capital Territory. Universal Insurance serves commercial, institutional and individual customers through an extensive general insurance network. It also provides financial services and risk management services nation-wide.
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