Regency Alliance Insurance Ghana Ltd and NEM Insurance Ghana Ltd business ventures have grown from strength to strength since both business merged a year ago. The two companies which are both Nigeria owned became the first insurance companies to ever merge their operations in the country. Regency Alliance Insurance will assume a 60% controlling stake in the new company, which is christened “Regency-Nem”.
Ms. Lydia Lariba Bawa Commissioner of Insurance made mention of the fact that the National Insurance Commission (NIC) as part of its risk based supervisory framework, issued a solvency and capital adequacy framework to improve the Industry capitalization .” The NIC raised the minimum capital requirement to GH¢.15million in 2014,which all companies are expected to meet by the end of December 2015″ she said.
The rationale for the new capital requirement which is part of the regulatory reforms in the insurance sector is to boost the capacity of insurance firms, to underwrite large transactions and also retain business that would have been underwritten by foreign companies in the country.
Mr. Edward Pianim Board Chairman of Regency Nem Insurance made mention that Regency Alliance Insurance Limited and Nem Insurance Ghana being the first Local Insurance companies to merge in Ghana, marked the beginning of a new Strategic relationship which will be of benefits to its stakeholders.
Managing Director of Regency Nem Insurance Ghana Limited Mr. Bode Oseni in his welcome address stated the combination of resources have strengthen them ” The recapitalization or merger allows a company to improve its Financial Structural System as astute risk management practice” He said.
The management expressed gratitude to NIC for its encouragement and provisions of enabling environment for the merger to take place and assured stakeholders of its commitment in building a strong insurance company.