Recapitalization: AIICO Records Huge Success, Increases Capital Base To N11.3bn

By LOVETH AZODO, Lagos

Following the uptake of 38.83 percent of its shares by two strategic investors, AIICO Insurance Plc has announced that it has increased its share capital from N6.1bn to N11.3bn.

The increase which is a huge success in its recapitalization journey was announced in a statement signed by the company’s Head, Strategic Marketing & Communications Department, Segun Olalandu after an Extra-Ordinary General Meeting (EGM) Today in Lagos.

The statement shows that LeapFrog Nigeria Insurance Holdings Limited acquired 28.24 percent stake while AIICO Bahamas Nigeria Limited acquired 10.59 percent stake.

Commenting on the feat, the Managing Director/Chief Executive Officer, Mr. Babatunde Fajemirokun in his optimism opined that with the development, 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 strengthen our balance sheet, provide additional capacity to underwrite more risks and deliver better returns to our shareholders. Our history of stability and reliability has earned us a place of admiration in the minds of our esteemed customers. We are putting structures in place to continuously delight and excite them with innovative products and superior service experience”.

The statement read “In compliance with the new minimum capital requirements, AIICO recently concluded the private placement phase of its recapitalization exercise with an uptake of 38.83% of its shares by two strategic investors; LeapFrog Nigeria Insurance Holdings Limited acquired 28.24 percent stake while AIICO Bahamas Nigeria Limited acquired 10.59 percent stake.”

“As a result, the paid up share capital of the company has increased from N6.1bn to N11.3bn and it intends to raise the outstanding capital from existing shareholders.”

“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.”