Underwriters secure regulatory approval for share capital increment
Following the National Insurance Commission’s (NAICOM) proposed changes to the minimum regulatory requirement on paid-up capital for market expansion, some operators are concluding share capital increment exercise.
Speaking on this, the Chief Executive Officer, AXA Mansard Insurance, Kunle Ahmed, said that paid-up capital is a form of corporate reorganisation, which involves making substantial changes to a company’s capital structure.
It is one of the strategies companies use to improve their financial stability. The post-recapitalisation insurance industry is expected to be robust and capable of underwriting big risks as well as contribute meaningfully to the nation’s gross domestic product (GDP).
Ahmed applauded the support of the shareholders as the company seeks to grow its capital and capacity to be more relevant to the economy.
For Capital Express Assurance Limited, the new regulation has already increased its authorised share capital from N7.5 billion to N8 billion. This follows the new minimum capital requirement for life insurance companies set by the National Insurance Commission (NAICOM).
The Managing Director/Chief Executive Officer, Mrs. Bola Odukale, who spoke to The Guardian, during the company’s year-end media chat in Lagos, said to ensure a smooth recapitalisation, the company is in talks with three companies for acquisition purposes.
Odukale said the shareholders at their meeting approved rights issues and private placement as complementary efforts, which were part of the plans submitted to the board and NAICOM.