AT least 17 groups comprising over 45 insurance companies have applied to National Insurance Commission (NAICOM) for endorsement of their merger proposals in the ongoing recapitalisation in the industry.

Some of the groups that met the criteria already have the Commission's pre-merger consent while some companies that are standing alone have advanced to the concluding stages, the Commission announced last week in Lagos.

"As at the moment, we have received merger proposals from not less than 17 groups of companies consisting of over 45 insurers," the Commission's boss stated. However, for companies that are slow in the process, the regulator warned that much time is not on their side, warning that liquidation awaits such firms.

Briefing industry chiefs and the press on the process so far, Commissioner for Insurance, Chief Emmanuel Chukwulozie, stated that there would be no extension of deadline for completion of recapitalisation, affirming that the terminal date remains February 28, 2007.

While acknowledging that "steady progress" has been recorded so far in the process, he said much still lies ahead to be accomplished. Consequently, he urged all insurance companies to render their consolidation and recapitalisation returns monthly as indicated in the guidelines. Similarly, he reminded industry chiefs to ensure that their companies lodge with the Central Bank of Nigeria (CBN) the new statutory deposit on or before January 31, 2007 in accordance with the current capital base.

For companies that applied for mergers and acquisitions, the Commissioner disclosed that the "verification of the information content of their applications will soon commence" in line with the released guidelines. Chukwulozie urged insurance companies to let NAICOM into the problems they encounter so that it can proffer solutions to ensure that they succeed in their quest to recapitalise. He said that the Commission would prefer to midwife insurers to success rather than liquidate them.

Meanwhile, many companies are still struggling to come up with decisions on which way to go as the months roll by. Some leading brokers have also blacklisted some insurers that have not come up with any recapitalisation timetable.

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By Ifeanyi Ugwuadu

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