Aiico Insurance to Raise Share Capital to N1bn
By Uche Obike
Aiico Insurance Plc has concluded plans to raise its authorised share capital from N500 million to N1 billion by the creation of additional one billion ordinary shares of 50 kobo each ranking in all respects pari pasu with the existing ordinary shares of the insurance firm.
The Acting Managing Director of Aiico Insurance, Mr. Henry Omoragbon disclosed recently at a forum organised by his company for the stockbrokers and the financial press that the increase will position Aiico's paid up capital above the statutory minimum in the forthcoming years.
He added that it will also enabled the insurance firm respond to market demands and regulatory requirement for the foreseeable future.
Omoragbon recalled that the company's recent Rights Issue was fully subscribed and brought its paid up capital to N350 million.
The shareholders had earlier approved a Rights Issue of 300 million ordinary shares of 50 kobo each.
He assured that the board and management were committed to ensuring that the proceeds of the issue will be utilised accordingly in order to position the company to maintain and enhance its place in the industry.
On the performance on the company in the past one year, the Acting Managing director said that Aiico had fully automated its operations, beside being the largest life insurer in Nigeria (29% market share in 2002 excluding NlCON's share of the life insurance market)
He said further that company was also the largest field force/ agency force in the Nigerian insurance industry, as well as managing one of the largest equity portfolio's in the Nigerian insurance industry
Also, as the largest life insurer and a major player in General Insurance business in Nigeria, Omoragbon said the company planned to:
Strengthen its performance, improve efficiency and enhance growth through expansion of branch network,
Acquire new office buildings to accommodate branch and agency offices and renovate all major branches and agency offices in the country.
Continue creating innovative products by utilising its highly trained staff and agents.
Modernise its information technology
Increase its risk bearing capacity in addition to strengthening its working capital requirements.
Continue to place strong emphasis on human capital development through onthe job training, in house seminars and external courses.
Become a pension fund administrator (PFA).
Take advantage of the pension reform act of 2004 to deepen Group life Insurance and Annuity Products.
The Aiico announced that despite the economic backgroumd and a highly competitive industry, the company's financial results for the year ended December 31, 2003 were most encouraging, as the resolve of the board and management continued to be firmly focused on building the strength and asset value of Aiico Insurance and maintaining profitability by every ethical means.
|
