Board of Directors, Wapic Insurance Plc, a multi-line insurance company has secured the approval of its shareholders to increase the authorized share capital of the company from N8.5 billion to N15 billion, by the creation of 13 billion additional ordinary shares of 50 kobo each.
According to the company, this is necessitated by the recent directive of the National Insurance Commission(NAICOM), which mandated insurance companies to increase their paid-up sharecapital before the 30th June, 2020 deadline.
Wapic operates a general Insurance Business as well as a Life Business here in Nigeria, and so will requires to meet minimum paid up share capital of N10 billion for general and N8 billion for life ahead of the deadline.
The resolution approval, according to Aigboje Aig-Imoukhuede, chairman of the Company is in the best interest of shareholders, and to enable the company accommodate any share capital increase.
Aig-Imoukhuede while responding to shareholders questions at the 60th Annual General Meeting (AGM) held in Lagos said the board is committed to ensuring that Wapic did not just meet the capital requirement, but stand strong to compete effectively.
The chairman who was on the side of NAICOM about increasing the capital base of operating companies said, insurance business requires a lack of funding to attract the right talent, build skills and grow the business.
“I want to assure you that Wapic will be there when the recapitalisation exercise will be completed, he assures the shareholders.
Wapic during the financial years ended 31st December 2018, posted a gross written premium of (GWP) of N13.9 billion, a 42 percent increase from N9.81 billion in 2017.
This performance the company said was buoyed by attainment of leadership status in some major accounts and enhanced underwriting capabilities.
The group also achieved an underwriting profit of N2.2 billion, a 40 percent growth from N1.54 billion achieved in 2017.
Accordingly, the group experienced an 88 percent decline in profit before tax(PBT) to close at N187 million, negatively impacted by the drop in investment and other income, and the growth in underwriting and operating expenses for the period. Profit After tax during the review year is N351.2 million.
Meanwhile, the company paid claims amounting to N4.96 billion, a 30 percent increase from N3.82 billion paid out in 2017, underscoring the importance it attaches to its customers towards meeting their claims obligation.
Yinka Adekoya, managing director, WAPIC Insurance Plc in a statement at the AGM said going into the future, the company plans to up its drive for business excellence through sustainable practices, motivated by its commitment to customer satisfaction.
“While we are hopeful about our future, we are very conscious of the realities of geopolitical and economic volatility, regulatory challenges, foreign currency pressure and customer needs and consumption pattern”.
Adekoya noted that Wapic will continue to improve and emerge stronger than ever. “Our current financial performance together with our firm commitment to improving our service delivery underlines our affirmation that our efforts to date at building an institution of repute have been successful”.
Modestus Anaesoronye
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