LASACO Assurance Plc has joined the league of insurance companies queuing to raise capital. The company gave a hint of this in a notice it sent to the Nigerian Stock Exchange (NSE) informing it of its plans to hold an Extra Ordinary General Meeting (EGM) on the 10th of October 2018.
Resolutions to be passed at the meeting include:
That the authorised share capital of the company be increased from 10 billion to 50 billion by the creation of 40 billion ordinary shares. The shares shall rank parri passu with the existing ordinary shares.
That the board of directors, subject to regulatory approval raise additional capital through the issuance of up to 40 billion ordinary shares of 50 kobo each by way of public offer, private placement or preference shares.
The company closed at N0.31 in today’s trading session, down 3.13%. Results for the half year ended June 2018 show gross premium written increased from N4.7 billion in 2017 to N6.3 billion in 2018. Profit before tax increased from N483 million in 2017 to N527 million in 2018. Profit after tax, however, declined from N387 million in 2017 to N382 million in 2018.
Insurance companies have unveiled plans to raise capital in a bid to move from one tier to another. AIICO Insurance Plc, last month 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 passes the following resolutions:
- The directors are authorised 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.
- The proposed shares to be issued shall rank parri passu with the ordinary shares held by existing members of the public.
- The directors are authorised to take all actions deemed necessary and expedient without further recourse to shareholders.
Sovereign Trust Insurance, in a notice sent to the NSE on its upcoming AGM also disclosed plans to raise capital.
The National Insurance Commission (NAICOM) has released the new capitalisation 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.