NAICOM debunks media reports on solvency ratio of 5 insurers
The National Insurance Commission (NAICOM) has debunked media reports that the solvency ratio of five insurance companies fall below regulatory threshold.
A statement today by the Commission’s Director of Communication, Razaaq Salami, said “The attention of the National Insurance Commission (NAICOM) has been drawn to a news publication in the Businessday Newspaper of Tuesday, May 8, 2018 with the caption “solvency of 5 Insurers fall below regulatory threshold”.
“While not holding brief for any company, NAICOM, being the apex Regulatory and Supervisory body of the insurance sector in Nigeria do hereby refutes this claim in its entirety,” he said.
He said “The five companies as mentioned in the publication are financially strong and solvent. 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”.
“Suffice it to say that the solvency test of the financials of insurance companies in Nigeria is based on the provision of extant laws.
“The Commission reiterates that members of the press should always explore all avenues to verify their facts before going to bed to avoid misleading the public,” Salami stated.
