REFORMERS NEWS NETWORK

Insurers stepping up recapitalization
Insurers stepping up recapitalization
     
By Rosemary Onuoha

THERE are indications that insurance firms are pre-empting a speculated plan by Nigerian Insurance Commission, NAICOM, to raise the industry minimum capital base.

To this end, shareholders of Wapic Insurance Plc have approved the company’s plan to raise additional capital in the sum of N10 billion.

The capital raise would be by way of rights issue, public offering, book building process or other methods or a combination of methods by issuance of ordinary shares, preference shares, convertible loans stocks, medium term notes, bonds or other securities in such tranches, series, or proportions, as the directors may deem fit.

The offers would be at such coupon or interest rates, within such maturity periods and on such terms and conditions as may be determined by the directors. The shareholders at the company’s 58th Annual General Meeting in Lagos last week, expressed their readiness for the anticipated increase in capital.

This came on the back of their appraisal of the company’s ongoing transformation initiative, which they adjudged to be highly successful and encouraging.

The company’s Chairman, Aigboje Aig-Imoukhuede, said “The company is approaching its shareholders at this time to seek approval to raise additional capital as a proactive step towards getting the company ready and set for a much-anticipated regulatory increase in the minimum capital of insurance companies.”