Prestige Assurance plans N3.37b capital raise
Prestige Assurance Plc has planned for a new capital raise of N3.374 billion to enable it meet capitalisation requirements of N10 billion set for companies in its category.
This this is despite that the exercise is on hold following a court order.
The underwriting company, which has completed a rights issue during the past year, is having about N6.62 billion capitalisation.
Prestige, a composite insurer, would require N10 billion paid up share capital to meet the requirement of the National Insurance Commission (NAICOM), if the recapitalisation was called up gain.
Meanwhile, the Board of Directors, at the company’s Annual General Meeting held in Lagos in compliance with COVID-19 directives secured the approval of the shareholders to raise fresh funds.
The approval, which was part of the special business at the meeting reads: “That the directors be and are hereby authorised to raise additional capital of up to N3, 373, 719, 056 only, via the issuance of ordinary shares by way of private placements, public offer, rights issue, mergers and acquisition, or a combination of any of these options at a price, terms and conditions to be determined …”
The Chairman, Adedoyin Salami, who spoke at the AGM, doused shareholders apprehension on mergers and acquisition option, stating that the directors had chosen to have the recapitalisation options to ensure that the company was not caught in the web.
However, he assured the shareholders that any decision taken by the board would be in their best interest.
The company also gave a dividend payout of 2.5kobo, representing N331.3 million for the 2020 financial year, which was appreciated by the shareholders.
The shareholders lauded the company for being able to pay dividend in the year despite the pandemic.
The company however recorded a gross premium income of N7.01 billion, against N6.13 billion in 2019, a 14.36 percent increase.
Profit for the year was N678.31 billion, a 57.08 percent increase from N431.83 billion in 2019, and these improved results, according to Salami, demonstrates both strength and potential of the company.
The underwriter also grew its total assets to N18.51 billion, from N13.18 billion in the previous year, while shareholders fund rose from N8.45 billion in 2019 to N12.41 billion.
Salami stated that innovation and efficiency gains would be the key pillars around which they seek to raise their game in near future.
SOURCE: THE NATION