AIICO Insurance Plc records a gross premium of N62bn

AIICO Insurance Plc has recorded a gross premium of N62 billion for the financial period ended 31 December 2020.
This represents a 24 per cent increase when compared with N50.13 billion recorded in 2019 for the same period under review.
The company also improved its profit for the year by 17 per cent to N6.70 billion from N5.71 billion in 2019.
Recall that AIICO recently got the approval of its shareholders at its 50th annual general meeting to increase its authorized share capital from N18 billion to N20 billion.
The shareholders also gave their nod for the declaration of one bonus share for every eight ordinary shares held by existing shareholders of the company as at December 28, 2020 payable from retained earnings and one bonus share for every five ordinary shares held by existing Shareholders of the company as at December 28, 2020 payable from share premium.
The Chairman of the firm, Mr. Kundan Sainani, expressed his gratitude for the immense support the company has thus far received from its shareholders. He assured them of the Board’s commitment to continue to steer the affairs of the firm on the path of continuous and sustainable progress, irrespective of daunting macro-economic challenges.
On his part, the Managing Director and Chief Executive Officer, Babatunde Fajemirokun, also shed some light on the satisfactory progress the company has made in its recapitalization journey, having surpassed the December 2020 expectations of the regulator; the National Insurance Commission (NAICOM).
Fajemirokun also noted that with the company’s Rights Issues oversubscription by 126 per cent in line with meeting the industry recapitalisation exercise, shows an indication of shareholders’ excitement at the opportunity and readiness to be part of the promising future.
“We were never in doubt about our shareholders’ faith and commitment to our company. They share our thoughts and vision for a much stronger and resilient company, and are positioning themselves to take full advantage of the inherent opportunities”, he said.
Explaining more on the Rights Issues, AIICO’s Head, Strategic Marketing and Communications, Segun Olalandu, said the company conducted its Rights Issues exercise listing 4,357,770,954 ordinary shares of fifty kobo each at Eighty Kobo (N0.80) per share, on the basis of five new ordinary shares for every 13 ordinary shares held. He noted that shares allotted will be credited immediately to the CSCS accounts of allottees by the Registrars to the Issue,
Recall that for the ongoing industry recapitalisation exercise, NAICOM stipulated that life insurance companies are to meet a minimum paid-up capital of N8 billion, up from N2 billion; general insurance companies are expected to increase their paid-up capital to N10 billion from the earlier N3 billion.
For composite insurance (those that operate both general and life insurance) are to recapitalise to the tune of N18 billion as against the previous amount of N5 billion, while reinsurance businesses are now required to have a minimum capital of N20 billion from N10 billion that obtained in the past., Sun reports.