International Energy Insurance exits Daewoo loan

…plans N15bn capitalisation

International Energy Insurance Plc (IEI) has exited its old long Daewoo loan, paving way for the underwriting firm to strengthen its foundation for capital restructure structure and financial stability.

This was disclosed at the Company’s 44th Annual General Meeting (AGM) held the Haitel Hotel Dutse, Jigawa State, marking a pivotal moment in the company’s strategic direction.

The AGM served as a platform for robust engagement with shareholders and the culmination of key decisions designed to propel IEI towards sustained growth and improved financial stability.

Speaking at the meeting, Chamberlain Peterside, non-executive director/chairman of the AGM, said this strategic manoeuvre represents a significant victory for the company, demonstrating its proactive approach to strengthening its financial foundation and optimizing its capital structure.

Peterside who represented the Chairman of the Company, Bukar Goni Aji stated that the successful exit from this legacy loan is projected to unlock substantial growth opportunities and accelerate IEI’s ongoing recapitalization initiatives, with a clear focus on meeting the regulatory minimum capital requirement of N15 billion.

Other major outcome of the AGM was shareholders’ approval and adoption financial statements for 2021-2023, and other key governance actions, re-electing directors, appointing auditors, and establishing committee roles to ensure accountability.

The company however recorded a growth in gross premium at an average rate of 40.9 per cent with yearly growth rate of 17.8 per cent in 2021, 22.1 per cent in 2022 and 82.8 per cent 2023, translating to N687 million, N881.5 million and N5.1billion respectively.

Read also: International Energy Insurance repositions for growth

Bukar Goni Aji pointed out that beyond the landmark Daewoo Loan resolution, the AGM facilitated comprehensive discussions on different matters shaping IEI’s operational governance framework.

Supo Sogelola, managing director, IEI Plc, added that the AGM also upheld best practices as the company also authorized auditor remuneration and disclosed management compensation, demonstrating a commitment to transparency in its operational framework.

Sogelola stressed that significant steps have also been taken to restructure the company’s financial standing and modernize its governance.

He said, “A key decision involved settling the company’s debt to Daewoo by transferring loan obligations to Norrenberger Advisory Partners Limited (NAPL), with NAPL receiving shares in the company as part of this agreement. This move aimed to resolve a major financial obligation and reposition the company for future growth.

“Furthermore, the company approved measures to strengthen its capital base and operational framework. These included increasing the Issued Share Capital to facilitate growth and authorizing the Board to raise additional capital through various means.

“In a move to update its practices, the meeting have also authorized amendments to the company’s governing documents, specifically to allow for flexibility in how general meetings are conducted (virtual or physical) and to reflect the changes in share capital. Therefore, the Board has been empowered to take all necessary actions to implement these changes, ensuring compliance with regulatory requirements and smooth execution.

He added that the successful completion of the 44th AGM at the Haitel Hotel Dutse signifies IEI’s unwavering commitment to fostering strong relationships with its stakeholders and adhering to principles of sound corporate governance.

Tony Edeh, a director in the company on his part maintained that the Company is confident that the resolutions passed, and the strategic direction reaffirmed at the AGM will empower IEI to achieve its ambitious goals and deliver enhanced value to its shareholders.

“We are committed to being a trusted partner for individuals and businesses across Nigeria, offering a wide range of insurance solutions tailored to meet diverse needs. With a focus on customer satisfaction, IEI leads the industry in delivering dependable, innovative, and efficient services”, he added.