The shareholders of WAPIC Insurance Plc has moved its authorised capital base to N15 billion and will seek its shareholders’ consent for its ratification at a meeting scheduled for June 10 .
The move became necessary as the company prepares to meet the directives of the sector regulator, National Insurance Commission (NAICOM).
WAPIC is currently on N8.5 billion authorised capitalisation and will require N6.5 billion to move to the new threshold.
The sector regulator in a May 20 circular to the underwriting arm of the industry ordered that the minimum paid-up share capital for insurance and reinsurance firms be increased by June 30, 2020.
With this development, WAPIC will create additional 13 billion units of shares of 50kobo to rank pari passu with the existing ordinary shares in the capital of the company
WAPIC in a June 1 notice signed by its secretary, Mary Agha, to its shareholders and the Nigerian Stock Exchange (NSE) noted the amendment of its resolutions for its annual general meeting (AGM) scheduled for June 10 to include this development.
In the addendum captioned, ‘Special Business’ and under resolution 8, the company noted that the increase serves the best interest of the shareholders as a whole, and recommends that they vote for the resolution that moves the capitalisation to N15 billion from the current N8.5 billion.
It reads ‘That pursuant to resolution of the shareholders of Wapic Insurance Plc passed at the 58th Annual General Meeting of the company on May 24, 2017 where the directors of the company were authorized to raise, whether by way of rights issue, public offering, placing, book building process or other methods or combination of methods, additional funds or capital of up to N10 billion or its equivalent in any foreign currency, by way of issuance of ordinary shares, preference shares, convertible or non-convertible loans, stock, medium term notes, bonds or other securities, in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods, and on such other terms and conditions, including the provision of security repayment, as the directors may deem fit or determine, that the authorized share capital of the company be increased from N8.5 billion to N15 billion by the creation of additional 13 million ordinary shares of 50 kobo each to rank pari passu in all respects with the existing ordinary shares in the capital of the company’.
The NAICOM’s Director for Policy and Regulation,P ius Agboola, in the May 20 circular said the new capitalisation for Life underwriters is N8 billion from the current N2 billion while general business underwriters will need to shore up their capitalisation to N10 billion from the current N3 billion. For those transacting Composite Insurance business, they are required to increase to N18 billion from the current N5billion. Likewise others, reinsurance operators are also to go up to N20 billion from the present N10 billion.
The new capitalization which represents over 200 percent increase for the four units of the four units of the segment, excludes micro-insurance firms and takaful operators.
The new regime takes effect June 30, 2020.
