Linkage Assurance Plc said it has secured the approval of its shareholders to increase authorised share capital of the company from N7.5 billion to N15 billion.
The underwriting firm revealed it would accomplish this by the creation of additional 30 billion ordinary shares of 50 kobo each.
A statement from the firm disclosed this move would enable the company, a general business insurer to meet the new minimum capital requirement set for insurance companies in the industry, and position it for bigger ticket risks in the market.
Directors of the company at an Extra Ordinary General Meeting (EGM) held in Lagos also got the approval of shareholders to raise additional equity capital up to the maximum limit of the authorised share capital.
It stated it would realise this either by way of way of special placement or public offer, right issue or other methods or combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company and subject to the approval of the regulatory authorities.
Addressing shareholders at the meeting, the Chairman of the company, Chief Joshua Fumudoh, said “the new share capital regime provides unique opportunity for the company to strategically position itself as a key market leader within the insurance industry”.
Fumudoh assured the shareholders, that the board and management will utilize the additional equity capital to aggressively expand and grow the business and ensure consistent returns on investment to shareholders.
Also speaking, Managing Director/Chief Executive Officer, Linkage Assurance Plc, Daniel Braie, told shareholders the board has quite a number of options to recapitalise the company, but assured them that any decision that will be taken at the end of the day will be in the overall interest of the shareholders.
With nearly N200 billion expected into the Nigerian insurance industry after the ongoing recapitalisation by underwriters, the sector is hopeful to emerge stronger, contribute reasonably to the economy and also able to offer good returns to investors.
The National Insurance Commission (NAICOM) had in a circular issued on Monday May 20, 2019, announced an increase in the paid-up share capital of life companies from N2 billion to N8 billion; general business from N3 billion to N10 billion; composite business from N5 billion to N18 billion; and reinsurance companies from N10 billion to N20 billion, with 30th June 2020 as deadline.