Sovereign Trust Raises Capital Base, Gives Bonus Shares
Sovereign Trust Insurance Company Limited, a new generation underwriting firm has increased its capital base to N412 million through a N58.92 million bonus share offer to shareholders in the company. The company also raised its authorised share capital to N1 billion.
The board of the company was at the 9th Annual General Meeting of the company in Lagos recently, empowered to effect necessary changes in the company's books to give force to the above.
Recommendations made by the company's board of directors to the effect that "the authorised share capital of the company be increased from N500 million to N1 billion by the creation of 500 million ordinary shares of N1 each ranking pari passu in all respects with existing ordinary shares of the company" received the approval of owners of the company at the meeting.
The board was also empowered "to capitalise the sum N58,916,667 being amount standing to the credit of the reserve account for bonus issue in the books of the company".
The board was also authorised to appropriate the said sum of N58,916,667 million to existing ordinary shareholders in the company in the an equitable proportion, applying such sum on their behalf in paying in full at par 58,916,667 of the unissued portion of the N1 ordinary shares in the capital of the company.
The shares in line with the shareholders' approval, is to be allotted and credited as fully paid to and amongst shareholders in the proportion aforesaid so that such shares be issued upon the terms and that same shall rank pari passu for all dividends declared from September this year.
Meanwhile, the company raked in N859.13 million gross premium, N682.46 million net premium income, N133.50 million profit before tax and N120.88 million profit after tax all in 2003.
The company also increased its contingency reserve from N59.63 million in 2002 to N85.36 million in 2003 and raised its total assets from N599.43 million the previous year to N919.62 million last year. Shareholders' stake in the company was also raised to N515.13 million as at end of 2003 accounting period.
Chairman of the company, Chief Ephraim Faloughi in his statement noted that during the year under consideration the Nigerian insurance industry recorded successes in the area of gross premium income, asset base and other performance indices.
He said that the year was characterised by mixed fortunes for both government and corporate bodies.
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