AIICO Insurance plc on Wednesday said it had surpassed the December 2020 deadline expectations of the National Insurance Commission (NAICOM).
Managing Director /Chief Executive Officer (CEO), Mr Babatunde Fajemirokun, in a statement explained that the company had made satisfactory progress in its recapitalisation journey.
According to Fajemirokun, its shareholders had approved its request to increase its authorised share capital from N18 billion to N20 billion.
“There are no doubts that we have made some giant strides along this path.
“Beyond just meeting the requirements, we have seen the potentials and value this exercise brings.
“We have positioned ourselves to take full advantage for value creation, both in the short and long term.
“AIICO will emerge stronger and with greater capacity to underwrite more risks”, he said.
NAICOM had directed that insurance companies pay 50 per cent of the minimum paid-up capital while Re-insurance companies are expected to pay 60 per cent by Dec. 31, 2020.
In the segmentation Life Insurance business with existing minimum paid-up capital of N2 billion is expected to pay a minimum paid – up capital of N4 billion by Dec. 31, 2020 and N8 billion by Sept. 30, 2021.
General Insurance business with existing minimum paid-up capital of N3 billion is expected to pay a minimum paid-up capital of N5 billion by Dec. 31, 2020 and N10 billion by Sept. 30, 2021.
Composite Insurance business with existing minimum paid-up capital of N5 billion is expected to pay a minimum paid-up capital of N9 billion by Dec. 31. 2020 and N18 billion by Sept. 30, 2021.
Reinsurance business with existing minimum paid-up capital of N10 billion is expected to pay a minimum of N12 billion by Dec. 31, 2020 and N20 billion by Sept. 30, 2021.
Meanwhile, the House of Representatives, on Tuesday, urged NIACOM to suspend the proposed Dec. 31, 2020 deadline for the first phase.
The House resolution followed a motion of urgent public importance sponsored by Mr Benjamin Kalu on the need to suspend the proposed recapitalisation in view of the pandemic and the recession being experienced in the country.
AIICO said that the share capital would be increased by the creation of additional four billion ordinary shares of 50 kobo each.
The company said that the shareholders gave the approval at its 50th Annual General Meeting (AGM) held virtually.
AIICO said that the shareholders also gave their nod for the declaration of one bonus share for every eight ordinary shares held by existing shareholders of the company as at Dec. 28, 2020 payable from retained earnings.
It also gave one bonus share for every five ordinary shares held by existing shareholders of the company as at Dec. 28, 2020 payable from share premium.
The Chairman of the insurance firm , Mr Kundan Sainani expressed his gratitude for the immense support the company had received from its shareholders.
Kumdan assured the shareholders of the Board’s commitment to continue to steer the affairs of the firm on the path of continuous and sustainable progress, irrespective of daunting macro-economic challenges.
Mr Babatunde Fajemirokun, Managing Director /Chief Executive Officer (CEO) said that the company have made satisfactory progress in its recapitalisation journey and surpassed the december 2020 deadline expectations of the regulator.
“There are no doubts that we have made some giant strides along this path. Beyond just meeting the requirements, we have seen the potentials and value this exercise brings.
“We have positioned ourselves to take full advantage for value creation, both in the short and long term.
“AIICO will emerge stronger and with greater capacity to underwrite more risks”, he said.
