The Nigerian Stock Exchange (NSE) last Friday placed the shares ofÂ Prestige Assurance Plc on full suspensionÂ Â to enable the Companyâ€™s Registrars updateÂ Â the register of shareholders for the planned share capital reconstruction of the company.
This implies that there will not be trading in the shares of the insurance firmÂ for now. Prestige Assurance had last yearÂ made an application to the NSEÂ Â Â for a â€œNo Objectionâ€ to its proposal to reduceÂ Â Â theÂ Â companyâ€™s share capital from N2, 685,216,000 being 5,370,432,000 ordinary shares of 50 kobo each to N1, 908,705,000 being 3,817,410,000 ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the Company.
According to the company, theÂ Â share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets.
Prestige Assurance hadÂ Â explained that the essence of the capital reconstruction wasÂ Â to enable itÂ Â wipe out its accumulated retained losses of N776, 511,000.
It added thatÂ Â the reconstruction will reposition the company on a trajectory for subsequent accumulated retained profit, create more value to its shareholders, allow the company to declare dividend and improve its perception in the market thereby making it more competitive.
The management of Prestige Assurance Plc late last year told the capital market community ofÂ Â Â strategic initiatives being taken that would ensure sustained growth over the next five years.
According to theÂ Â companyâ€™s forecasts, pre-tax profit is expected to rise to N877 million by the end of 2017 and thereafter rise consecutively to N8.08 billion by 2021. Profit after taxÂ Â is expected to increase to N596 million in 2017 and N2.09 billion in 2021.
Chief Financial Officer, Prestige Assurance Plc, Mr. Oluwadare Emmanuel, said the companyâ€™s strategic growth plan focused on prompt payment of claims to customers and dividend payment to shareholders.
He disclosed thatÂ Â Â the company has restructured its balance sheet in order to be able to make dividend payments while it has implemented many digital transformation initiatives and robust software to ensure prompt claims payment.
He added that successful launch of new products such as Prestige Mediclaim Policy, Prestige Salary Protection Shield and Travel Insurance (OMP), expansion of retail market reach by employing marketing associates and opening new branches were aimed at deepening the companyâ€™s market penetration and build a solid base for growth.