Stanbic IBTC seeks regulatory approval to own insurance firm
The local unit of South Africa’s Standard Bank, Stanbic IBTC on Friday said it was seeking regulatory approvals for the establishment of a wholly-owned Life Insurance subsidiary.
The lender in a regulatory filing with the Nigerian Stock Exchange (NSE) said the new subsidiary is to be known and referred to as Stanbic IBTC Insurance Limited.
Stanbic IBTC said the commencement of operations for this proposed subsidiary is subject to receiving all required regulatory approvals, including licensing by the National Insurance Commission (NICOM).
“Accordingly, Stanbic IBTC will update the market upon completion of the regulatory approval process as well as licensing of the new subsidiary,” the lender said in the filing.
The industry regulator, NICOM had last year stipulated a new capital base for insurance companies in a bid to strengthening the financial capability of players in the sector and enhance competitiveness.
The industry regulator has stipulated the increase in Life Insurance firm to N8 billion from the present N2 billion, General Insurance firm to raise an additional N7 billion to meet the N10 billion new capital base.
Also, the composite firms will need an additional N13 billion to meet the N18 billion new capital while reinsurance companies are expected to raise their capital to N20 billion from the present N10 billion.
Stanbic IBTC, which is proposing to established life insurance firm, will have to comply with the new capital base of N8 billion for that class of insurance as stipulated by the industry regulator.