Firm receives shareholders nod on share reconstruction, bond conversion

SUNU Assurances Nigeria has received regulatory approval for the completion of the share reconstruction exercise and conversion of the bond debt to equity.

Share reconstruction is a process whereby a company reduces the total number of outstanding shares it has by canceling out shares it does not need.

The Chairman, SUNU Assurances Nigeria, Kyari Bukar said the company has obtained the approvals of National Insurance Commission (NAICOM), the Financial Reporting Council of Nigeria (FRCN), and the Corporate Affairs Commission (CAC) for the exercise.

Addressing shareholders during the 33rd annual general meeting (AGM) of the company in Lagos, Bukar also said the Federal High Court, Lagos Division, has sanctioned the company’s application for the confirmation of the reduction of the issued share capital of the company.

According to him, the final approval of the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) is currently being awaited to complete the exercise and credit the CSCS accounts of shareholders.

Shareholders of the company had last March approved the share reconstruction and the conversion of the bond debt to equity at an extraordinary general meeting (EGM).

“By December 31, 2020, SUNU Assurance would have satisfied the newly required minimum paid-up capital of N5billion. In addition, conscious efforts would be made to achieve the required minimum paid-up capital of N10 billion by September 30, 2021, through the rights issue exercise as approved by the shareholders at the last EGM,” he added.

Reviewing its performance, the chairman said the company’s underwriting profit increased by 30 percent from N914 million in the 2018 financial year to N1.2 billion in 2019.

In the same vein, the company’s investment income grew from N519.57 million in 2018 to N719.52 million in 2019, while it paid claims to the tune of N657.9 million in the year under review.

Furthermore, he said: “We were able to increase significantly our processes through improved operating efficiency, optimising our current assets and improving operating efficiency which is part of our strategy. We also seek to create further value by developing the opportunities embedded in our existing operations, which present the most attractive options for growth.