National Insurance Commission Refutes False Insolvency Report On Some Insurance Companies In Nigeria

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In a statement by Head of Corporate Communication of NAICOM, Rasaq Salami, the report that certain insurance companies in Nigeria have become insolvent has officially been confirmed to be false. Mr. Rasaq Salami said, “while not holding the brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refute claims that some insurance companies are insolvent in its entirety.” “ With the benefit of hindsight, the report is not only false but misleading as the stated solvency ratios are at variance with the true position. For the avoidance of doubt, Section 24(2) of the Insurance Act 2003 stipulates that the solvency margin of an Insurer shall not be “less than 15 per centum of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid-up capital whichever is greater”.

Mr. Rasaq Salami noted that the five companies ( AIICO Insurance Nigeria Plc , First Bank Insurance Plc,  Lead way Assurance Limited, NEM Insurance Plc, and Continental Nigeria Plc)  being alluded as distressed are financially strong and solvent, and commission has advised members of the press to always explore all channels to verify their facts before reporting to avoid misleading the public.

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