Underwriting firm, STACO Insurance plc is planning to raise additional capital up to N3 billion that enable the company play stronger in the nation’s financial services market.
Consequently, it has secured the approval of its shareholders through a special resolution during the Company’s Annual General Meeting held in Lagos.
“That the Directors be and are hereby authorised to raise additional capital up to a maximum of N3 billion through right issue and or public offer and/ or special placement upon such terms and conditions as the Directors may deem fit in the interest of the Company for the purpose of enhancing the Company’s working capital.”
In this vein, the Staco is increasing its authorised share from N4, 500,000,000.00 to N6, 500,000,000.00 by the creation of additional N4, 000,000,000 ordinary shares of 50 kobo each ranking parri-passu in all respects with the existing ordinary shares in the capital of the company.
Financial result of STACO Group as the end of 2012 financial year reveal a gross premium income of N6.9 billion against N6.6 billion in 2011, showing a 4.5 percent increase whereas the net premium earned stood at N6.38 billion from N6.12 billion in 2011, also indicating a 4.33 percent increase.
Total assets of the growing as the end of 2012 moved from N7.27 billion to N7.91 billion, showing a 8.8 percent growth, while shareholders fund inched by 14.94 percent to close at N2.41 billion as against N2.09 billion in 2011.
Dere Otubu, chairman of the Company said the descion to raise additional capital was to promote growth and position the company strategically for the ever increasing competition in the financial services sector.
“This development has given rise to the need for adequate capitalisation to position the company in a good stead to compete favorably in the nation’s insurance sector”
Shareholders who spoke to support the move said it was necessary that the Company raise additional capital to enable it do big ticket risks particularly in the oil and gas business, which they believe hold a lot of potential for premium growth.
STACO Insurance emerged in July as result of a discreet acquisition and restructuring carried out on Alpha Insurance plc. It was incorporated in Nigeria and subsequently licensed to transact all classes of general insurance business.
Owned by Nigerians who have distinguished themselves in their various business endeavours, the company’s strength lies in its passion for high standard and prompt claims settlement, its management said.
By: Modestus Anaesoronye