Recapitalisation: 4 Audit Firms Begin Capital Verification Of 18 Insurance Companies

Four major audit firms are now verifying the capital status of 18 insurance companies as part of the ongoing recapitalisation exercise in the nation’s insurance sector, it was learnt.

The four auditors include; PricewaterhouseCoopers (PwC), KPMG, Ernst & Young (EY), and Deloitte, who were expected to leverage their collective expertise, capacity, experience, and reputation to conduct the exercise, thereby revealing the actual status of the Minimum Capital Requirement (MCR) these insurers claimed.

Although the names of the 18 insurers cannot be ascertained at the time of writing this report, there are insinuations that the top 10 underwriting firms in the country are involved.
These underwriting firms, it was gathered, already have excess capital above the minimum benchmark and do not necessarily need fresh capital unless they feel the market conditions are right for them to either acquire or attract new investors to consolidate their market share further.
To this end, approximately 42 other insurers, which primarily require capital injections, are in the final stage of obtaining either shareholder approval or regulatory approval.
For instance, SUNU Assurances, Sovereign Trust Insurance (STI) Plc, and Lasaco Assurance Plc, among others, have already secured shareholders’ approval to raise fresh capital, with others planning to approach shareholders soon through an Extraordinary General Meeting (EGM).
Confirming this development at the EY Insurance Summit 2025, over the weekend, the commissioner for Insurance/chief executive officer (CEO), National Insurance Commission (NAICOM), Olusegun Omosehin, said, “Let me say that the industry’s response has been encouraging, with a very significant number of insurers who have indicated their readiness for capital verification.
As we speak, we have about 18 companies that have indicated their readiness for capital verification.”
Omosehin, who was represented by the deputy commissioner, Technical, Dr Usman Jankara, explained that the commission had established a capital verification framework to ensure transparency and credibility.

“We’ve also put in place a capital verification framework, which is aimed at guaranteeing the integrity of the process. To this end, we are partnering with the Big Four audit firms, including EY, for independent verification of compliance with the minimum capital that is required,” he pointed out.
Earlier, Dr. Usman Jankara at the Continental Reinsurance Roundtable held in Lagos, at the weekend, said, “In order to protect the integrity of the recapitalisation exercise, the Commission has resolved to utilise the Big 4 Auditing Firms for the capital verification exercise, in order to leverage on the collective expertise, capacity, experience and reputation, so that every company that is so adjudged as having fulfilled the MCR will be so indeed.”

Recapitalisation, he stressed, is the foundation for growth, not the finish line, adding that, it strengthen solvency and underwriting capacity, thereby, enabling insurers to write bigger tickets and retain more risk locally; build public and investor confidence thus, attracting capital and partnerships, encourage mergers and acquisitions, thereby, fostering scale and operational efficiency and position Nigerian insurers for regional competitiveness, especially under the African Continental Free Trade Area (AfCFTA). Dr Usman noted that NAICOM has also set apparent compliance timelines: 30th September 2025: Submission of recapitalisation plans; 10 working days after month-end: Monthly progress reports; November 2025 – June 2026 for Capital verification, and 30th July 2026 as the final compliance deadline and issuance of a licence to companies that have complied with the MCR.
NAICOM, he said, is ready to facilitate the journey through guidance, engagement, and collaboration, whilst urging every stakeholder to embrace this moment, not as a regulatory burden, but as a strategic opportunity to redefine the industry’s future.
At the earlier summit, Partner and Consulting Leader, West Africa at EY, Ben Afudego,
emphasised the importance of collective action by stakeholders to strengthen the industry.
“The summit became important for stakeholders to discuss what we can do together collectively to push the agenda, to shape the future of insurance confidently, such that we can see the growth that is expected of the sector, and that this can be the catalyst that will actually contribute to our country,” Afudego said.