Recapitalization: AIICO Records Huge Success, Grows Paid up share capital to N11.3bn
By Ngozi Onyeakusi– AIICO Insurance Plc. has recorded an extraordinary success in its recapitalization journey – with successful completion of its private placement investment by two strategic investors. 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.
In compliance with the new minimum capital requirements, AIICO recently concluded the private placement phase of its recapitalization exercise with an uptake of 38.83% of its shares by two strategic investors; LeapFrog Nigeria Insurance Holdings Limited acquired 28.24 percent stake while AIICO Bahamas Nigeria Limited acquired 10.59 percent stake. As a result, the paid up share capital of the company has increased from N6.1bn to N11.3bn and it intends to raise the outstanding capital from existing shareholders.
At the Extra-Ordinary General Meeting (“EGM”) which held on Thursday, March 5, 2020 in Lagos, the shareholders demonstrated their support by voting in favour of the proposition to raise additional capital through a rights issue.
Speaking on the company’s recapitalization efforts, the Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun says “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 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”.
AIICO Insurance is a leading composite insurer in Nigeria with a track record of serving our clients that dates back over 50 years. Founded in 1963, AIICO 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.
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