Thread by @nsenigeria

The National Insurance Commission (NAICOM) recently announced the upward review of the minimum paid-up share capital requirement of insurance and reinsurance companies. #NSEISF

The ongoing recapitalization and consolidation exercise is expected to significantly impact the industry and equally present new opportunities in M&A as well as private equity and public offerings. #NSEISF

The Nigerian Insurance industry has grown remarkably over the years, generating a Gross Premium Income (GPI) of ₦448.6 billion in 2018, reflecting a 12% growth from 2017.
#NSEISF

The industry also recorded an increase in its asset base by an estimated sum of ₦1.3 trillion as at December 31, 2018, reflecting a 17% Compound Annual Growth Rate over the last three years.
#NSEISF

According to the National Bureau of Statistics, the Insurance sector recorded a nominal growth rate of 6.69% and a real GDP growth rate of 3.96% in Q3 2019 from 4.48% in Q2 2019 and 1.03% in Q3 2018. #NSEISF

This data indicates a positive outlook for the Nigerian insurance industry, the reality and headwinds faced by operators in the sector are quite formidable. #NSEISF

Many licensed insurers are largely undercapitalized, thus limiting their ability to take on big ticket in-country risks, as is often required in the oil & gas, marine and aviation sectors.#NSEISF