Nigeria’s insurance industry has completed its year-long recapitalisation exercise with 43 insurance and reinsurance companies meeting the new minimum capital requirements, drawing more than N300 billion in fresh capital into the sector.

The successful firms, comprising 23 non-life insurers, 10 life insurers, eight composite insurers and two reinsurance companies, signal a major milestone in the industry’s drive to strengthen financial capacity, improve risk underwriting and position operators for larger-ticket business.

Announcing the outcome at the weekend, the National Insurance Commission (NAICOM) confirmed that “43 insurance and reinsurance companies successfully met the prescribed Minimum Capital Requirements” under the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other applicable insurance laws and guidelines.

It noted, however, that eight insurance companies submitted evidence of compliance shortly before the statutory deadline and are currently undergoing final verification and regulatory review. This would be concluded within 14 days, the commission said.

Commissioner Olusegun Ayo Omosehin said: ‘The National Insurance Commission announces the successful completion of the twelve-month insurance sector recapitalisation exercise undertaken pursuant to Section 15 and other relevant provisions of NIIRA 2025, signed into law on 31 July 2025 by President Bola Ahmed Tinubu, as part of his administration’s financial sector transformation agenda towards the attainment of a US$1 trillion economy by 2030.

“The successful conclusion of the exercise marks a defining milestone in the transformation of Nigeria’s insurance industry and signals the beginning of a new era for insurance in the country. It represents a major step towards building a stronger, more resilient, adequately capitalised, professionally governed, and policyholder-focused insurance sector that is better positioned to support national economic growth, deepen financial inclusion, mobilise long-term investment capital, and contribute meaningfully to the stability of Nigeria’s financial system.”

The insurance companies confirmed by the Commission as compliant with the Minimum Capital Requirements are:

Composite Insurers: Leadway Assurance Company Limited, AIICO Insurance Plc, Cornerstone Insurance Plc, AXA Mansard Insurance Plc, LASACO Assurance Plc, Fortis Global Insurance Plc, Industrial and General Insurance Plc, and Great Nigeria Insurance Plc.

Non-Life Insurers: Zenith General Insurance Company Limited, Custodian and Allied Insurance Limited, NEM Insurance Plc, Heirs General Insurance Limited, Fin Insurance Company Limited, Mutual Benefits Assurance Plc, Tangerine General Insurance Ltd, Capital Express Indemnity Insurance Limited, Sanlam-Allianz General Insurance Nigeria Ltd, Consolidated Hallmark Insurance Limited, Sterling Assurance Nigeria Limited, Unitrust Insurance Company Limited, NSIA Insurance Limited, Rex Insurance Limited, Linkage Assurance Plc, Anchor Insurance Company Ltd, SunuAssurances Nigeria Plc, KBL Insurance Ltd, International Energy Insurance Plc, Veritas Kapital Assurance Plc, NPF Insurance Company Ltd, Coronation Insurance Plc, and Prestige Assurance Plc.

Life Insurers: Custodian Life Assurance Limited, CHI Life Assurance Limited, Heirs Life Assurance Limited, Prudential Zenith Life Insurance Ltd, Stanbic IBTC Insurance Limited, Sanlam-Allianz Life Insurance Nigeria Limited, Capital Express Life Assurance Limited, Mutual Benefits Life Assurance Ltd, Enterprise Life Assurance Company (Nigeria) Ltd, and Coronation Life Assurance Limited.

Reinsurance Companies: Continental Reinsurance Plc and FBS Reinsurance Limited.

Following the enactment of NIIRA 2025, the commission commenced a structured implementation process to provide strategic oversight, ensure transparency, support operators throughout the transition, and facilitate the effective implementation of the new minimum capital requirements within the statutory compliance period.

To ensure an orderly, transparent, credible, and verifiable process, the commission issued the guidelines on the implementation of Minimum Capital Requirements (MCR) for insurance and reinsurance companies in Nigeria. The guidelines provided detailed guidance on the statutory minimum capital requirements under NIIRA 2025, eligible and ineligible capital instruments, admissible and non-admissible assets, verification and validation procedures, regulatory timelines, reporting obligations, and supervisory expectations throughout the implementation period.

Through a comprehensive process of review, verification, and validation, the recapitalisation exercise has delivered a major boost to the Nigerian insurance industry. It has enhanced the financial resilience of operators, attracted substantial domestic and foreign investment, and rekindled strong investor confidence, NAICOM stated.

“Nigeria’s insurance industry is now entering a new phase of development founded on stronger capital, improved financial resilience, and enhanced capacity to underwrite larger and more sophisticated risks across strategic sectors of the economy.”

The increase in minimum capital, the commission said, will improve insurers’ ability to honour policyholder obligations promptly, absorb emerging risks, support infrastructure and other long-term investments, and compete more effectively within regional and global insurance markets.

“The recapitalisation exercise also provides a stronger foundation for enhanced risk-based supervision by the commission, ensuring that regulatory capital remains appropriately aligned with the nature, scale, complexity, and risk profile of each licensed operator.”

NAICOM also reassures policyholders, investors, insurance operators, development partners, and the general public that, as the implementation of NIIRA 2025 continues alongside the modernisation of Nigeria’s insurance ecosystem through innovation, technology, and digitisation, the commission will continue to strengthen consumer protection, promote sound market conduct, and accelerate insurance penetration across the country.

“Our unwavering commitment remains to build a fair, stable, innovative, inclusive, and globally competitive insurance market that inspires public confidence and delivers lasting value to policyholders and the Nigerian economy.”

The commission will continue to engage stakeholders and provide regular updates on post-recapitalisation supervisory actions, companies undergoing final verification, industry restructuring developments, implementation of the Risk-Based Capital Framework, and other strategic initiatives designed to deepen insurance penetration and strengthen confidence in the Nigerian insurance industry, NAICOM stated in the statement.

NAICOM also expressed its profound appreciation to the Federal Government, regulatory and supervisory partners, shareholders, investors, operators, professional bodies, development partners, and all stakeholders whose cooperation and commitment contributed to the successful completion of this historic exercise. “The commission looks forward to even stronger collaboration as Nigeria enters a new era of insurance.”

According to the commission, the successful completion of this recapitalisation exercise is not the destination but the foundation. It marks the beginning of a new era in which stronger institutions, stronger governance, and stronger public confidence will make insurance work better for every Nigerian.

Modestus Anaesoronye is a leading Nigerian financial journalist with over two decades of experience reporting on the insurance and pension sectors across Nigeria and West Africa. He has held key editorial positions at major national media outlets, including The Comet, The Nation, and Financial Standard, and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. A widely travelled reporter, he has covered industry developments in more than 14 countries across Africa and Asia. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies, including PensionScope and the Pension Fund Operators Association of Nigeria (PenOp), among others.