Increase of the minimum share capital of insurance companies

The federal government has decided to increase the minimum authorized capital of insurance companies as follows:

• CLife insurance companies: 2 billion NGN (15 million USD) instead of 150 million NGN (1.1 million USD).
• Non life insurance companies: 3 billion NGN (22.7 million USD) instead of 200 million NGN (1.5 million USD)
• Reinsurance companies: 10 billion NGN (75.6 million USD) instead of 350 million NGN (2.6 million USD).

This decision which is intended to enhance local companies' financial capacities is expected to trigger a series of mergers. Recapitalization should be over by February 2007.