Following the National Insurance Commission’s (NAICOM) proposed changes to the minimum regulatory requirement on paid-up capital for market expansion, some operators are concluding share capital increment exercise.
Speaking on this, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said that paid-up capital is a form of corporate reorganization, which involves making substantial changes to a company’s capital structure.
According to him, It is one of the strategies companies use to improve their financial stability, maintaining that the post-recapitalisation insurance industry is expected to be robust and capable of underwriting big risks as well as contribute meaningfully to the nation’s gross domestic product (GDP).
Ahmed applauded the support of the shareholders as the company seeks to grow its capital and capacity to be more relevant to the economy.
