AIICO Insurance Plc, in a notice to the Nigerian Stock Exchange (NSE), has announced it will be holding an Extra Ordinary General Meeting on Friday the 5th of October 2018. Agenda of the meeting is to consider and if thought fit pass the following resolutions.
- The directors are authorized subject to the approval of relevant authorities to raise 4.4 billion ordinary shares of N0.50 each at N1.20 per share by way of a special/private placement. Shareholders had in May 2016, given the directors approval to raise additional capital up to N25 billion.
- The proposed shares to be issued shall rank parri passu with the ordinary shares held by existing members of the public.
- The directors are authorized to take all actions deemed necessary and expedient without further recourse to shareholders
AIICO Insurance Plc is currently trading at N0.82 in today’s trading session, up 5.33%.
The National Insurance Commission (NAICOM), the regulatory body for insurance firms in the country, last month released the new capitalization requirements for insurance firms in the country.
Under the risk based capitalisation requirements, each cadre namely life, non life and composite insurance firms have had their capital base divided into three tiers.
Insurance companies operating in the composite segment, that is all classes of insurance now have three tiers. Companies operating in tier one will be required to have a capital base of N15 billion. Tier two firms will need to have a capital base of N7.5 billion, while those in tier 3 will maintain the current capital base of N5 billion.