The shareholders of AIICO Insurance Plc have pledged their support to the management of the company, voting in favour of the proposition to raise additional capital through a Rights Issue. They disclosed this at the company’s Extra-Ordinary General Meeting on Thursday.
Speaking on the company’s recapitalization efforts, the Managing Director/Chief Executive Officer, AIICO Insurance Plc, Mr Babatunde Fajemirokun said, “The future looks bright for our company; we are making progress in positioning our company for long-term sustainability. Increasing our capital base will enable us to strengthen our balance sheet, provide additional capacity to underwrite more risks and deliver better returns to our shareholders.
“Our history of stability and reliability has earned us a place of admiration in the minds of our esteemed customers. We are putting structures in place to continuously delight and excite them with innovative products and superior service experience.”
What it means: The development means the company is closer to meeting its recapitalisation expectation with successful completion of its private placement investment by two strategic investors.
The insurance firm has increased its paid-up share capital from N6.1 billion to N11.3 billion and it intends to raise the outstanding capital from existing shareholders.
The company had earlier received shareholders’ approval to increase its authorized share capital to N18 billion through various instruments to meet the new minimum capital base for a composite insurer based on the NAICOM guidelines.
AIICO recently concluded the private placement phase of its recapitalisation exercise with the uptake of 38.83% of its shares by two investors; LeapFrog Nigeria Insurance Holdings Limited, which acquired 28.24% stake, and AIICO Bahamas Nigeria Limited that acquired 10.59% stake.
About AIICO: Founded in 1963, it provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.