L-R: Okanlawon Adelagun, executive director; Moses Omorogbe, company secretary ; Joshua Fumudoh, chairman, and Daniel Braie , MD/CEO , all of Linkage Assurance Plc , at the company’s Extraordinary General Meeting in Lagos.
PRESS RELEASE—Underwriting firm, Linkage Assurance Plc has secured the approval of its shareholders to increase the authorized share capital of the company from N7.5 billion to N15 billion by the creation of additional 30,000,000,000 billion ordinary shares at 50 kobo each.
Directors of the company at an Extra Ordinary General Meeting held in Lagos also secured the approval of the shareholders to raise additional equity capital up to the maximum limit of the authorized share capital, whether by way of way of special placement or public offer, right issue or other methods or combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company and subject to the approval of the regulatory authorities.
Chief Joshua Fumudoh, chairman of the company addressing shareholders at the meeting said “the new share capital regime provides unique opportunity for the company to strategically position itself as a key market leader within the insurance industry”.
Chief Fumudoh therefore assured the shareholders, that the Board and Management will utilize the additional equity capital to aggressively expand and grow the business and ensure consistent returns on investment to shareholders.
Daniel Braie, Managing Director/CEO, Linkage Assurance Plc responding to questions from shareholders said the board has quite a number of options to recapitalize the company, but assured them that any decision that will be taken at the end of the day will be in the overall interest of the shareholders.
With nearly N200 billion expected into the Nigerian insurance industry after the ongoing recapitalisation by underwriters, the sector is hopeful to emerge stronger, contribute reasonably to the economy and also able to offer good returns to investors.
Industry experts believe that the sector post consolidation will have enough resources to attract quality manpower, acquire necessary skills to underwrite big ticket risks, increase retention in the local market, and be able to take advantage of untapped potentials to create shareholder value.
The National Insurance Commission (NAICOM) had in a circular issued on Monday May 20, 2019 announced increase in the paid-up share capital of life companies from N2 billion to N8 billion; General Business from N3 billion to N10 billion; Composite Business from N5 billion to N18 billion; and Reinsurance Companies from N10 billion to N20 billion, with 30th June 2020 as deadline.
