By Nse Anthony-Uko
ABUJA, (Sundiata Finance) – Shareholders of Wapic Insurance have unanimously approved the company’s plan to raise additional capital in the sum of N10 billion only, or its equivalent in any foreign currency in line with the increase in capital requirement for the insurance industry.
At the company’s 58th annual general meeting held in Lagos last week, the shareholders threw their weight behind the move. This came on the back of their appraisal of the company’s ongoing transformation initiative, which they adjudged to be highly successful and encouraging.
The company intends to achieve by way of rights issue, public offering, placing, book building process or other methods or a combination of methods by issuance of ordinary shares, preference shares, convertible loans, stocks, medium term notes, bonds or other securities in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods and on such terms and conditions as the directors may deem fit or determine.
According to the company’s chairman, Aigboje Aig-Imoukhuede, while addressing the shareholders on the subject, “that the company is approaching its shareholders at this time to seek approval to raise additional capital is a proactive step towards getting the company ready and set for a much-anticipated regulatory increase in the minimum capital of insurance companies.
“This is particularly instructive in view of the recent adoption of the Risk Based Supervision model by the National Insurance Commission (NAICOM) and the directive to insurance companies to implement the Solvency II Capital Allocation model by 2018”. In his address, he made reference to when a similar regulatory capital increase was imposed on the banking industry during the consolidation era wherein only the banks that were proactive in raising the required capital emerged as winners.
Shareholders’ approval of the additional capital raise for the company is a testament of their belief and confidence in the company. More specifically, the current transformational journey that the company embarked upon under its current leadership inspired shareholders and demonstrated in practical terms the centrality of the exercise to shareholder value creation”
Reflecting this view, members of the various shareholders’ associations who spoke at the event expressed their satisfaction with the company’s performance at this time of recession and urged its Board and Management to continue to deliver incremental value for the company and all its stakeholders, especially in view of the additional fund being approved for the company’s operations.