Linkage Assurance Plc has secured the approval of its shareholders to increase the authorised share capital of the company from N7.5 billion to N15 billion.
This would be done by creating additional 30 billion ordinary shares at 50 kobo each.
The underwriting firm, said this would enable it meet the new minimum capital requirement set for insurance companies by the regulator and position it for big ticket transactions in the market.
Directors of the company at an Extra Ordinary General Meeting held in Lagos, also secured the approval of the shareholders to raise additional equity capital up to the maximum limit of the authorised share capital, whether by way of special placement or public offer, right issue or other methods or combination of any of them, either locally or internationally.
Linkage Assurance Chairman, Chief Joshua Fumudoh, while addressing shareholders at the meeting, said the new share capital regime provides unique opportunity for the company to strategically position itself as a key market leader within the insurance industry.
Fumudoh, therefore assured the shareholders, that the board and management would utilise the additional equity capital to aggressively expand and grow the business and ensure consistent returns on investment to shareholders.
Also speaking, the Managing Director of the company, Daniel Braie, said the board has quite a number of options to recapitalise the company, but assured them that any decision that would be taken would be in the overall interest of the shareholders.
With nearly N200 billion expected into the Nigerian insurance industry after the ongoing recapitalisation by underwriters, the sector is hopeful to emerge stronger, contribute reasonably to the economy and also able to offer good returns to investors.
Industry experts believe that the sector’s post consolidation would have enough resources to attract quality manpower, acquire necessary skills to underwrite big ticket risks, increase retention in the local market, and be able to take advantage of untapped potentials to create shareholder value.