Shareholders of Plc has approved the company to raise its authorized capital base to N15 billion from N8.5 billion, by the creation of 13 billion additional ordinary shares of 50 kobo each.
Wapic Insurance embarked on the capital raise, following the directives of the regulator, National Insurance Commission (NAICOM), deadline for insurance companies to recapitalise or lose their licenses.
The National Insurance Commission (NAICOM) had on May 20 given insurance companies a 13-month ultimatum to recapitalise or lose their licences.
The ultimatum raised the minimum paid-up share capital of a Life insurance company from N2 billion to N8 billion, Non-Life insurance from N3 billion to N10 billion and composite insurance from N5 billion to N18 billion while Re-insurance companies were directed to raise capital base from N10 billion to N20 billion.
In the circular signed by NAICOM‘s Director of Policy, Pius Agboola, it disclosed that the new minimum paid-up share capital requirements will become effective from the commencement date of the circular for new applications, while existing insurance and reinsurance companies shall be required to fully comply not later than Tuesday, June 30, 2020.
The Chairman, Wapic Insurance, Mr. Aigboje Aig-Imoukhuede, noted that the increase serves the best interest of the shareholders as a whole, applauding them for voting in favour of the resolution to increase the capital base of the insurance company to N15 billion from the current N8.5 billion.
According to him, “That pursuant to resolution of the shareholders of Wapic Insurance Plc passed at the 58th Annual General Meeting(AGM) of the company on May 24, 2017 where the directors of the company were authorised to raise, whether by way of rights issue, public offering, placing, book building process or other methods or combination of methods, additional funds or capital of up to N10 billion or its equivalent in any foreign currency, by way of issuance of ordinary shares, preference shares, convertible or non-convertible loans, stock, medium term notes, bonds or other securities, in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods, and on such other terms and conditions, including the provision of security repayment, as the directors may deem fit or determine, that the authorised share capital of the company be increased from N8.5 billion to N15 billion by the creation of additional 13 million ordinary shares of 50 kobo each to rank pari passu in all respects with the existing ordinary shares in the capital of the company.”
The Managing Director, Yinka Adekoya, added that going into the future, the company plans to up its drive for business excellence through sustainable practices, motivated by its commitment to customer satisfaction.
“While we are hopeful about our future, we are very conscious of the realities of geopolitical and economic volatility, regulatory challenges, foreign currency pressure and customer needs and consumption pattern.
“Wapic will continue to improve and emerge stronger than ever. Our current financial performance together with our firm commitment to improving our service delivery underlines our affirmation that our efforts to date at building an institution of repute have been successful,” she added.