Regency Alliance Insurance and NEM Insurance Ghana Limited have merged to meet the minimum capital requirement by the National Insurance Commission (NIC).
Under the new NIC requirement, direct insurance companies are expected to increase their capital to GHS15million while Re-Insurance companies are to have GHS 40million.
Speaking at a ceremony to announce the merger, the Commissioner at the National Insurance Commission, Lydia Lariba Bawa, said: “For our market, there are over 50 companies and we think that is too much for the industry, considering the fact that there are even more applications for licences. We are looking at having a smaller number who possess stronger capacities. So if the companies should come together, they should be able to increase their capacities so they can absorb major risks.”
For his part, the Managing Director of Regency Nem Insurance, Bode Oseni, expressed happiness over the merger. He said: “I think it’s the right way to go and we are proud of the convergence; we are also satisfied over the fact that it is the first time that local insurance companies are coming together. We would like to work to make the coming together a good success.”
The initial September 30 deadline for all insurance companies to review their minimum capital has been extended to the end of the year.