By Ebere Nwoji
AIICO Insurance plc, insurance and financial services conglomerate has secured express approval of its shareholders to upgrade to a Holding Company, increase its authorised share capital from N7.5 billion to N12.5 billion as well as raise fresh capital up to N25 billion .
The shareholders’ nod formed part of a special business resolution passed at its 46th annual general meeting (AGM), held in Lagos recently.
Specifically, the shareholders authorised the Board of Directors of the company “to commence all processes required to obtain shareholders’, regulatory and other approvals necessary for the adoption of a holding company structure.”
According to the shareholders, AIICO’s authorised share capital is to be increased from N7,500, 000,000.00 made up of 15,000,000,000 (fifteen billion) ordinary shares of 50 kobo each to N12,500,000,000.00 by the creation of 10,000,000,000 ordinary shares of 50 kobo each ranking pari-passu with existing ordinary shares of the Company.
The proposed fresh share capital of N25 billion is to be raised either by way of public offering, placing, and rights issue or other methods or combination of methods.
AIICO as a group has subsidiaries in Insurance, Pension, Trustees and Health Management.
Addressing shareholders at the meeting, Chairman, Board of Directors, Dele Fajemirokun said the planned restructure would make AIICO a financial services conglomerate that will not only increase shareholder value, but stands on a stronger position to compete more favourably.
“I can assure you that your shareholding in AIICO Insurance will not be depleted, but transferred to the Holding Company for greater value,” Fajemirokun assured.
On future outlook of the company, he said: “We are delighted to inform you that our search for a strategic investor is nearing fruition. We believe that a strategic alliance demonstrates our commitment to growing the company with increased underwriting and risk management capabilities as well as access to different markets and brand equity associated with partnering with globally recognised player. This can only be good for the company for the long term,” Fajemirokun stated.
Also speaking at the AGM, managing director of AIICO Insurance, Edwin Igbiti said: “We are determined to make the AIICO brand a top-of-mind in the consumer’s consciousness.
According to him, the company will continue to invest in infrastructure to improve quality of service and would continue to invest in its human resources as this has remained its greatest assets.
“We will improve our relationship with brokers in the corporate space while maintaining or competitive advantage in the retail segment, “Igbiti stated.