Old Mutual confident of meeting NIC’s new minimum capital requirement

Insurance firm, Old Mutual Ghana says it is optimistic about meeting the new minimum capital requirement set out by the regulator for insurance, the National Insurance Commission (NIC).

This is according to the Chief Financial Officer of Old Mutual Ghana, Clara Amarteifio-Taylor who says her outfit has put in place the necessary procedures to meet the June 2021 deadline for insurance firms.

The NIC in 2019 increased the capital for insurance companies from GH¢15 million to GH¢50 million and that of Reinsurance companies from GH¢40 million to GH¢125 million. That for Insurance Broking companies was also been increased from GH¢300,000 to GH¢500,000.

The minimum capital requirement for reinsurance broking companies was however maintained at GH¢1 million.

Consequently, like the banking sector, there have been concerns the increase in minimum capital requirement could result in the subsequent collapse of some insurance firms.

But some industry experts have indicated that the increase will rather help in creating a robust and resilient insurance sector.

Last week, Bloomberg reported that Old Mutual registered a 5 percent drop in earnings for 2019 with the company indicating that its operations were weighed down by a stuttering South African economy.