Top underwriting firms, AIICO Insurance PLC and Linkage Assurance PLC have met the 50% minimum capital requirements as mandated in the two phases segmented recapitalization exercise of the National Insurance Commission (NAICOM).
The Managing Director and Chief Executive Officer of the two firms, Mr Babatunde Fajemirokun and Mr. Daniel Braie made the disclosure in their separate remarks to flag-off a one-day training workshop organised by NAIPCO for its members in Lagos on Tuesday.
The AIICO MD/CEO who was represented at the occasion by the firm’s Head, Strategic Marketing and Corporate Communication Department, Mr.Segun Olalandu, said the company has already met and surpassed the 50% minimum capital requirements before the expiration of NAICOM’s December 31, 2020 deadline set for all insurance and reinsurance companies in Nigeria.
Mr Fajemirokun also commended the efforts of NAIPCO in creating awareness and educating the public on the benefits and advantages of insurance as a risk mitigating mechanism and a tool for poverty alleviation and wealth creation.
While stressing the prime place of the Media in nation building, he described NAIPCO as a “very important association and strategic” for the nation’s insurance industry, he assured the association of his company’s continued supports, Mr. Fajemirokun implored the journalists to
redouble their efforts and remain committed to their professional ethics and conduct in order to take the industry to the next level.
The Managing Director of Linkage Assurance PLC, Mr. Daniel Braie who was represented by
the firm’s Chief Financial Officer (CFO), Mr. Emmanuel Otitolaiye, gave insight on how the company was able to meet the 50% recapitalization threshold.
Mr Braie said having met the N5 billion for the first segment, added that the company is working assiduously to ensure that the balance of N5 billion is made available before NAICOM’s
September 30, 2021 deadline.
He explained that as at December 31, 2019, Linkage Assurance PLC’s paid-up Capital was N4 billion, adding that to raise the remaining N1 billion, the firm at her 2019 Annual General Meeting (AGM) held on August 13, 2020, sought and received approval from Shareholders to raise the balance from the company’s accumulated retained earnings of N2.4 billion by issuance
of two billion bonus shares of N0.50 kobo to existing shareholders valued at N1 billion.
According him, “Having succeeded in obtaining shareholders’ and Regulatory approvals, Linkage Assurance Plc has met the N5 Billion minimum capital requirements as at date earlier
than 31 December 2020 deadline set by NAICOM.
“The balance of N5 Billion would have to be met on or before 30 September 2021 being deadline set by NAICOM and the Company has array of options to comfortably achieve this
before deadline.”
