Last July, The National Insurance Commission announced a slew of regulatory pronouncements targeted at increasing the market capitalization of insurance companies. In a move that shocked the Insurance Sector, the regulator increased the capital base by 200%.
- Insurance firms underwriting general business have been mandated to shore up their capital from N3 billion to N10 billion.
- Composite insurance firms, that is, firms underwriting both life and general business will raise their capital from the current N5 billion level to N18 billion.
- Reinsurance firms will move up from the current minimum capital of N10 billion to N20 billion.
Insurance Companies have till June 30, 2019, to comply with this directive. To make things even more difficult, NAICOM also insists insurance company investors are not allowed to borrow from the banks to shore up their share capital thus relying only on equity to meet the capital requirements. Thus, they will have to raise money from the capital market or via strategic investors at least on the back of their current valuations.
Market Cap: Nigeria’s Insurance companies quoted on the Nigerian Stock Exchange have a combined market capitalization of just N99.5 billion. To put this into perspective, Dangote Sugar alone is worth about N115 billion and GTB’s half-year profit alone is over N90 billion. Nigerian insurance companies are so small they can hardly cater to an economy with a GDB of over N90 trillion.
Cheap stake: As investors scan through the over a dozen insurance companies listed on the exchange they might want to also focus on those that are even worth less than a billion on market valuation. That is, these companies can be bought for about $4 million. Here is a list
- Goldlink Insurance – N909 million
- International Energy Insurance – N487.9 million
- UNIC Diversified Holdings – N516.4 million
Combined, these companies are worth less than N2 billion and struggling. As expected, any potential buyers will have to pay a control premium and while raising cash to meet the minimum capital requirement. The upside, however, is that this is the surest way to get into Nigeria’s burgeoning insurance sector via a reverse listing.
Covid-19: WHO approves China’s Sinopharm vaccine
WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.
The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination. The vaccine is reported to have 79% efficacy against covid.
This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.
“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.
The WHO added that the easy storage requirements make it highly suitable for low-resource settings.
“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.
“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.
The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.
The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.
In case you missed it
The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.
“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead
Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead
A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.
According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.
Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.
She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.
The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.
Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.
Nairametrics | Company Earnings
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- Okomu Oil proposes dividend worth N6.7 billion for shareholders.
- Ardova Plc confirms appointment of Oladeinde Nelson-Cole as secretary.
- Cadbury Nigeria Plc set to hold 56th Annual General Meeting (AGM) on June 16.
- FCMB Group Plc appoints Muibat Ijaiya as Director.
- Afromedia Plc reports a loss after tax of N27.3 million in Q1 2021.