By Rosemary Onuoha
Aiico Insurance Plc has increased its paid-up share capital to N11.3 billion from the previous figure of N6.1 billion following investments from LeapFrog Nigeria Insurance Holdings Limited as well as Aiico Bahamas Nigeria Limited.
While LeapFrog Nigeria acquired a 28.24 percent stake in the company, AIICO Bahamas Nigeria Limited acquired a 10.59 percent stake.
Aiico said that it intends to raise the outstanding capital from existing shareholders.
In a statement, the company said, “Aiico Insurance has recorded an extraordinary success in its recapitalization journey – with successful completion of its private placement investment by two strategic investors.
“The company had earlier received shareholders’ approval to increase its authorized share capital to N18 billion through various instruments to meet the new minimum capital base for a composite insurer based on the NAICOM guidelines.
“In compliance with the new minimum capital requirements, Aiico recently concluded the private placement phase of its recapitalization exercise with the uptake of 38.83% of its shares by two strategic investors;
“At the Extra-Ordinary General Meeting, EGM, which held on Thursday, March 5, 2020 in Lagos, the shareholders demonstrated their support by voting in favour of the proposition to raise additional capital through a rights issue.”
Speaking on the company’s recapitalization efforts, the Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun said: “The future looks bright for our company. We are making progress in positioning our company for long-term sustainability.
“Increasing our capital base will enable us to strengthen our balance sheet, provide additional capacity to underwrite more risks and deliver better returns to our shareholders.”