Underwriter gets regulatory approval for share capital raise

By Chiamaka Ajeamo    

Following the National Insurance Commission (NAICOM’s) directives on the minimum regulatory requirement on paid-up capital for market expansion, AXA Mansard Insurance Plc has announced the conclusion of its  share capital increase process.

The Company, having obtained requisite approval from its shareholders has commenced implementation of phase one of its plans.

At the Extraordinary General Meeting of the firm held on December 7, 2020, the insurer declared a bonus issuance to increase its share capital from N5.25 billion to N18.0 billion, thus raising the number of shares outstanding from 10.5 billion to 36.0 billion.

This increased number of outstanding shares was expected to lead to higher share register management cost, impact per-share metrics, and possible wide-ranging implications on future capital raising exercises.  To manage the impact of the bonus share issuance, the Company implemented the second phase of the 2020 approved scheme after receiving the final sets of regulatory approvals which is a capital reconstruction through par value re-domination.

This has led to an increase in the nominal value of shares from N0.50 to N2.00 per share and consequently, reduced the number of outstanding shares from 36 billion units to 9 billion units whilst maintaining the existing shareholding structure.

  The share reconstruction was completed on September 27, 2021 and the reconstructed shares have been credited to each shareholder’s account. All shares continue to rank equally in all respects and continue to form a single class of ordinary issued shares of AXA Mansard.

  Commenting on the exercise, the Chief Financial Officer, Ngozi Ola-Israel said. “ We strive to provide shareholders with the best possible return on their investment while also ensuring that we fully optimise the number of shares in stock.

“The reconstruction done maintains the existing shareholding structure as well as the shareholder value of each of our esteemed shareholders. We are positioned to continue delivering strong earnings with the support of all our stakeholders.”

  Also speaking, the Chief Executive Officer,  Kunle Ahmed, said “We are grateful for the continuous support of our shareholders during this process. We assure you of our dedication to the company’s continued growth and profitability through the continual delivery of exceptional services to our customers.”