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Following the successful completion of its private placement investment with two strategic investors, AIICO Insurance Plc, said it has made extraordinary success in its recapitalisation journey and progressing with its effort in positioning the company for long-term sustainability.
The Managing Director/CEO, Mr. Babatunde Fajemirokun, in a statement by the Head, Strategic Marketing and Communications Department, AIICO Insurance Plc, Segun Olalandu said that in compliance with the new minimum capital requirements, the insurance firm recently concluded the private placement phase of its recapitalisation programme with the uptake of 38.83 per cent of its shares by two investors; LeapFrog Nigeria Insurance Holdings Limited which acquired 28.24 percent stake while AIICO Bahamas Nigeria Limited acquired 10.59 per cent stake. As a result, the paid-up share capital of the company has increased from N6.1 billion to N11.3 billion as it hopes to raise the outstanding capital from existing shareholders.
It would be recalled that AIICO received its shareholders’ approval to increase its authorised share capital to N18 billion through various instruments to meet the new minimum capital base for a composite insurer based on the National Insurance Commission (NAICOM) guidelines.
At its Extra-Ordinary General Meeting (EGM) recently in Lagos, the shareholders demonstrated their support by voting in favour of the proposition to raise additional capital through a rights issue.
Commenting on the recapitalisation efforts, Fajemirokun said “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”.
