Goldlink Insurance to raise additional N8b capital

Targets N10.5b gross income in 2019

As part of its commitment to strengthen its operations and enhance shareholders value, Goldlink Insurance Plc has unfolded plans to raise additional N8 billion fresh fund from the nation’s capital market.

Addressing Stockbrokers during the ‘Facts Behind Restructuring’ of the company, on the Nigerian Stock Exchange (NSE), the Ag. Managing Director, Mrs. Olufunke Moore explained that the funds would be either by way of rights issue or public offer.

She stated the fresh capital injection was part of recommendations by the Interim Management Board (IMB), inaugurated by the National insurance Commission, (NAICOM) in 2012 to audit the accounts for the years ended 2011, 2012, 2013 and 2014.

She added that the fund raising exercise would enable the company to meet up with the share capital requirements of the 2003 Insurance Act, as composite insurer, while expressing optimism that it would transform the company to solvent position in order to enable it undertake ‘big ticket ‘ transactions.

According to her, the proceeds from the offer would be deployed in upgrading its information technology, while some parts of the proceeds would be invested in fixed instruments and real estate.

She further stated that Goldlink would reinvigorate its marketing strategy in 2016 in pursuit of its objective of reclaiming its market shares in the insurance industry.

She explained that the company would grow its gross premium income from the set target of N5.2 billion in 2016 to N10.5 billion in 2019 on successful conclusion of the offer.

Moore noted that Interim Management Board, IMB, reconstituted by NAICOM in February 2016 with the mandate of assuming oversight responsibilities and performing normal duties of Board of Directors for sound management and growth of the company, was able to reorganize the management with resultant return of vibrancy and efficiency in managing the company.

The IMB also took steps to reinforce budgetary control as an effective tool for financial and expenditure management and also commenced the review of past financial and employment policy and practices of the company.

She added that the board also commenced the process of sensitizing prospective investors, both existing shareholders and external investors to achieve the recapitalisation mandate.