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Insurer injects N9.15 billion capital into operations

By Bankole Orimisan
11 October 2021   |   1:49 am
The Chief Executive Officer, Adeolu Adewumi-Zer, Allianz Nigeria, has announced an additional capital injection of N9.15 billion from its shareholder, Allianz Africa Holding GmBH...

The Chief Executive Officer, Adeolu Adewumi-Zer, Allianz Nigeria, has announced an additional capital injection of N9.15 billion from its shareholder, Allianz Africa Holding GmBH (a legal entity of Allianz Africa), which raised the capital base of the firm above N18 billion.

Adewumi-Zer explained that additional shares are to be issued and allotted to all shareholders. Adewumi-Zer said this follows the announcement made last December of an increase in the business authorised share capital from N10 billion to N18.5 billion. To accomplish this, the company had created 17 billion ordinary shares to accommodate the first inflow of capital, he stated.

The first tranche of shares had been issued and allotted in favor of the shareholder, Allianz Africa Holding GmBH.

In 2019, The National Insurance Commission (NAICOM), announced the recapitalisation of insurance and reinsurance companies operating in the country. The minimum capital base for life and general insurance companies was increased from N2 billion and N3 billion to N8 billion and N10 billion respectively while composite insurance companies and reinsurance companies have their minimum capital base increased from N5 billion and N10 billion to N18 billion and N20 billion respectively.

Whereas there have been legal interventions restraining the implementation, Adewumi-Zer said “to err on the side of caution and with the full support of our parent group, we successfully imported our capital ahead of the stipulated deadline”.