NICON Insurance, Nigerian Re Among Firms Missing Recapitalization Deadline, Risk Liquidation

NICON Insurance Limited and its sister company, Nigerian Reinsurance Corporation, are facing potential liquidation after failing to meet the minimum requirements for the insurance sector recapitalization exercise. The National Insurance Commission (NAICOM) concluded the exercise on July 31, 2026, after it commenced in July 2025.

Persistent failure to submit audited financial statements for the past seven years and a lack of approved financial statements since 2019 were cited as key reasons for NICON Insurance's non-compliance. This prolonged period without updated financial records made it impossible for the regulator or auditors to determine the company's actual financial standing. Furthermore, NICON Insurance reportedly failed to submit required monthly recapitalization progress reports within stipulated timelines and did not meet several other regulatory obligations.

NAICOM initially issued new operating licenses to 43 insurance and reinsurance firms deemed compliant. Subsequently, seven additional firms were recognized for submitting their recapitalization documents and paying all required fees before the deadline. These firms had their papers with auditors for review, with NAICOM granting auditors an additional 14 days for verification.

However, NICON Insurance and Nigeria Reinsurance Corporation were marked for liquidation. Checks by THISDAY revealed that some non-compliant firms had accumulated arrears and violated stipulated rules. In contrast, Universal Insurance, which was performing well, engaged in merger discussions that ultimately failed when its potential partner secured foreign investment, leaving Universal Insurance unable to meet the recapitalization hurdle independently before the deadline.