AIICO Insurance Plc, in line with its preparedness to meet the new minimum capital requirement target for the insurance industry set by the National Insurance Commission (NAICOM), for June 2020, has received its shareholders’ approval to increase its authorised share capital to N18 billion from N10 billion.
The shareholders’ demonstrated their support by voting in favour of this proposition at the Extra-Ordinary General Meeting (EGM) which held on Monday, October 14 in Lagos.
Speaking at the EGM, the Chairman of the Board, Mr. Kundan Sainani, also announced that AIICO has received NAICOM’s ‘No Objection’ to its recapitalization plan. The company’s recapitalization plan, he stated includes a combination of private placement, rights issue and bonus issue.
According to the Managing Director, Mr Babatunde Fajemirokun, the private placement is at an advanced stage with a number of investors. Therefore, the shareholders also approved amendments to the Memorandum of Association to reflect the addition of new investors.
Fajemirokun further noted, “these are exciting times for us as a business and we are confident that the recapitalization exercise will see the company emerge stronger, more resilient, with adequate capacity and competencies to continue to provide risk protection and value adding services to all our customers and stakeholders.”