July 24, 2026/InvestmentOne Update
The ongoing insurance sector recapitalization, which began on July 31st, 2025, is nearing its July 31st, 2026, deadline. The recapitalization is aimed at deepening insurance penetration, enhancing solvency and ability to pay claims.
In a bid to comply with the minimum capital requirement, insurers have raised capital through various sources such as rights issues, private placements, and public offer. The table below shows a summary of the new requirement and current capital position for selected insurers listed on NGX based on Q1:2026 unaudited financial statements.
Kindly note that shareholders’ fund is as contained in the financial statements and no adjustment was made with respect to meeting the new minimum capital requirement.
Company | Category | New Min. Capital (NGN’bn) | Shareholders’ Fund (NGN’bn) |
Mutual Benefits | Life Insurance | 10.00 | 67.76 |
NEM | Non-Life (General) | 15.00 | 88.10 |
Linkage | Non-Life (General) | 15.00 | 52.80 |
Coronation | Non-Life (General) | 15.00 | 52.24 |
Sunu Assurance | Non-Life (General) | 15.00 | 14.53 |
AIICO | Composite (Life & Non-Life) | 25.00 | 103.50 |
AXA Mansard | Composite (Life & Non-Life) | 25.00 | 56.71 |
Cornerstone | Composite (Life & Non-Life) | 25.00 | 75.29 |
Based on these numbers, most insurers appear to be in solid capital positions. However, we await official confirmation from regulators regarding capital raised, with independent capital verification currently on. We expect Sunu Assurance to get over the line with the recently concluded rights issue, which is also undergoing verification.