The National Insurance Commission (NAICOM) has concluded the industry recapitalization exercise under the recently enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025. Forty-eight (48) insurers and two (2) reinsurers have been verified as meeting the new minimum capital requirements, reducing the number of operators within the country from 60 to 50.
BACKGROUND: THE OLD CAPITAL REQUIREMENTS
Nigeria’s last conclusive insurance recapitalization was in 2007, when the minimum capital was raised to ₦2 billion for life insurers, ₦3 billion for non-life (general) insurers, ₦5 billion for composite insurers and ₦10 billion for reinsurers. Those figures stood for nearly two decades. However, inflation and naira depreciation steadily eroded their real value and the industry’s capacity to pay large claims. Before the new law took effect, about 60 insurance and reinsurance companies were licensed to operate in the country under these thresholds.
THE NEW MINIMUM CAPITAL REQUIREMENTS
The NIIRA 2025 was signed into law on 31st July, 2025, giving operators 12 months (until 31st July, 2026) to comply with the new capital requirement. The new minimum paid up capital is as follows:
| Category | Old (2007) | New Naira (2025) | Increase |
| Life Insurance | N2 Billion | N10 Billion | 5x |
| General (Non-Life) Insurance | N3 Billion | N15 Billion | 5x |
| Composite Insurance | N5 Billion | N25 Billion | 5x |
| Reinsurance | N10 Billlion | N35 Billion | 3.5x |
NAICOM also introduced a risk based capital framework, engaged independent auditors to verify capital and provided for an Insurance Policyholders’ Protection Fund to safeguard consumers if an insurer becomes insolvent.
THE INSURERS NOW OPERATING:
- Non-life insurers (28): Zenith General Insurance, Custodian and Allied Insurance, NEM Insurance, Heirs General Insurance, Fin Insurance, Mutual Benefits Assurance, Tangerine General Insurance, Capital Express Indemnity Insurance, Sanlam-Allianz General Insurance Nigeria, Consolidated Hallmark Insurance, Sterling Assurance Nigeria, Unitrust Insurance, NSIA Insurance, Rex Insurance, Linkage Assurance, Anchor Insurance, Sunu Assurances Nigeria, KBL Insurance, International Energy Insurance, Veritas Kapital Assurance, NPF Insurance, Coronation Insurance, Prestige Assurance, emPLE General Insurance, Sovereign Trust Insurance, Alliance & General Insurance, Guinea Insurance and Regency Alliance Insurance.
- Life insurers (12): Custodian Life Assurance, CHI Life Assurance, Heirs Life Assurance, Prudential Zenith Life Insurance, Stanbic IBTC Insurance, Sanlam-Allianz Life Insurance Nigeria, Capital Express Life Assurance, Mutual Benefits Life Assurance, Enterprise Life Assurance Company (Nigeria), Coronation Life Assurance, emPLE Life Assurance and Tangerine Life Insurance.
- Composite insurers (8): Leadway Assurance, AIICO Insurance, Cornerstone Insurance, AXA Mansard Insurance, LASACO Assurance, Fortis Global Insurance, Industrial and General Insurance and Great Nigeria Insurance.
- Reinsurers (2): Continental Reinsurance and FBS Reinsurance.
WHY IT MATTERS
The exercise is a structural reset of the industry, aimed at strengthening the financial capacity and resilience of insurance operators across the country while also improving their ability to meet claims and absorb large risks. For businesses and individuals holding policies, only insurers on NAICOM’s verified list are confirmed to meet the new capital standard. Companies and policyholders should confirm their insurer’s compliance status as part of ordinary counterparty due diligence; whether for group life, marine cargo, professional indemnity or other cover. Anyone holding a policy with an operator that is not on the list should seek clarification from the insurer and NAICOM on the status of their cover.
