By Agency Reporter
Monday, 22 Nov 2010
The National Insurance Commission on Sunday said it had suspended the operational licence of Spring Life Assurance Plc with effect from October 19.
The Assistant Director, Corporate Affairs, Mr. Lucky Fiakpa, said this in a statement made available to the News Agency of Nigeria in Lagos.
He said that NAICOM was acting in accordance with Section 9 of the Insurance Act 2003, and that this became necessary following the inability of the company to maintain the statutory minimum capital of N2bn.
According to him, N2bn is required as minimum capital for underwriting life insurance business in the country.
“The action is also aimed at ensuring that the company’s existing capacity for claims settlement and other obligations is not overloaded.
“By implication, the company will not be allowed by the commission to accept any new business until the observed shortfall in the company’s capital base is remedied through injection of fresh capital,†he said.
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Source: Punch
