Stanbic IBTC Insurance emerges stronger after recapitalisation

Stanbic IBTC. Photo: Stanbic IBTC

Stanbic IBTC Insurance has strengthened its financial capacity after meeting the N10bn minimum capital requirement set by the National Insurance Commission (NAICOM), positioning the company to take advantage of the next phase of growth in Nigeria’s insurance industry.

The insurer was among the early operators to successfully complete the recapitalisation process, a development that comes as the industry adjusts to higher capital requirements and tougher regulatory expectations.

The company said the successful verification of its capital base represented more than compliance with a regulatory threshold, describing it as a reflection of the financial discipline, planning and governance underpinning its operations.

Chief Executive Officer of Stanbic IBTC Holdings, Chuma Nwokocha, said meeting the new capital requirement required extensive preparation beyond simply raising funds.

He said the verification of Stanbic IBTC Insurance against the N10bn threshold demonstrated the strength of its balance sheet and the group’s approach to capital planning and corporate governance.

Nwokocha said the achievement had placed the insurer on a stronger footing as the sector undergoes significant changes, with the recapitalisation exercise expected to leave the industry with fewer but better-capitalised operators.

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The development could also provide Stanbic IBTC Insurance with greater capacity to absorb risks, pursue new business opportunities and compete for a larger share of the insurance market.

For the company’s Chief Executive Officer, Akinjide Orimolade, however, the completion of the recapitalisation should not be regarded as the end of the process.

He said the new capital had created a stronger foundation from which the company would have to build a sustainable and competitive insurance business.

Orimolade said NAICOM’s recapitalisation programme had raised the standard for what would be required to operate effectively in the industry, making financial strength, scale and sound governance increasingly important.

He said the company’s priority would now be to convert its stronger capital position into lasting value for customers and other stakeholders.