The acceptance list for Wapic Insurance Plc Rights Issue opened on Wednesday November 20. The company is offering existing shareholders 15,613,194,623 ordinary shares of 50 kobo each at 38kobo per share.
The Rights Issue is on the basis of 7 new ordinary shares for every 6 ordinary shares held as at the close of business on 19 September 2019. The Acceptance list closes on Tuesday December 31, 2019.
Chapel Hill Denham Advisory Limited is the Lead Issuing House on this transaction. The Rights are tradable on the Nigerian Stock Exchange between November 20, 2019 and December 31, 2019.
Wapic Insurance Plc is raising the N5.93billion to enable the company invest in Wapic Life Assurance Limited to meet regulatory capital requirements and invest in Wapic Insurance (Ghana) Limited.
Over the last half century, Wapic has developed strong expertise in risk management and underwriting, assisting corporate entities and individuals with various classes of cover across a wide segment of the Nigerian demographics.
The company operates two wholly owned business lines –Wapic Life Assurance Limited, which operates in Nigeria and, a regional footprint in Ghana, Wapic Insurance (Ghana) Limited, as its subsidiaries.
The company’s business lines are split into large corporates, financial institutions, public sector, high net worth individuals (HNIs) and retail sales/distribution for underwriting, investment and claims management.
Wapic has a new five-year strategy plan for 2019 to 2023 to guide its aspirations to be a top 3 Nigeria Insurance Company by 2023. To achieve this, the Company expects to grow its current gross premium position for both the general and Life businesses.
The Group recorded a commendable growth in premiums at 42percent year-on-year to close at N13.89billion in 2018. Underwriting profit grew to N2.15billion in 2018, a 40percent annual growth from the prior period driven largely by the growth in premiums and better claims expense management.
The strategic drive for improved top line performance and better market positioning was a key contributor to the 11percent growth in operating expense recorded.
Asset portfolio rebalancing for strategic growth was a major driver of the 65percent increase in cash and cash equivalent from the December 2017 position. Increase in reinsurance recoverable across key product classes largely impacted the growth in reinsurance assets for the review period.
Iheanyi Nwachukwu
