Tunde Fajemirokun, AIICO Insurance Plc, GMD
BY NKECHI NAECHE-ESEZOBOR--Nigeria’s oldest insurer, AIICO Insurance Plc on Monday announced plans to increase its authorised share capital by 11.11 percent from N18 billion to N20 billion by the creation of additional four billion ordinary shares of 50 kobo each.
The lead insurer made this known on the floor of Nigerian Stock Exchange (NSE) to dealing members and investing public that its plans will be made known to shareholders during its 50th Annual General Meeting expected to hold in December, 2020.
AIICO had in September said it plans to invest the proceeds of its on-going right issue on its property, plant, equipment and technology.
According to the company, 61.2 percent of the proceeds are planned to be invested in property, plant and equipment to be completed Q4 2024, 38.8 percent are expected to be invested in technology to ne completed Q2 2023.
The insurer said its current capital base was N11.6 billion, adding that plans are in place to increase this to N15.02 billion after the rights issue and bonus issue by the end of the year.
The board recommended the bonus issue which will involve capitalising some of our retain earnings with the proposed term of one share for every five shares to shareholders as at 3rd December, 2020.”
After the bonus issue, AIICO will be at N16.02 billion and that deadline for new capital requirement of N18 billion is 2021.
It added that the key impact will ensure that they are able to underwrite big transactions, especially in aviation and oil and gas, earn market confidence and bring us closer to meet the new requirement.