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Niger Insurance targets N15bn additional capital

Putting ‘MIDAS’ touch to insurance regulation

 

Niger Insurance Plc has the approval of its shareholders to take all necessary steps to raise additional capital of up to N15billion.

At 20kobo per share, the company has 7.739billion shares outstanding valued at N1.547billion.

Summary of its shareholding position as at December 31, 2018 shows that Management Alliance Company Limited accounts for 497.908million units (6.43percent) while Chrome Oil Services accounts for 2.122billion units or 27.42percent of the total shares outstanding.

Also, ETHA Ventures Limited accounts for 724.314million units or 9.36percent while other Nigerian individuals and associations account for 4.395billion units or 56.79percent.

In the third-quarter (Q3) ended September 30, 2019 Niger Insurance Plc reported gross premium written decreased to N1.497billion from a corresponding year high of N3.042billion.

Its Gross Premium income in the review Q3’19 decreased to N1.413billion as against N3.002billion in Q3’18. Underwriting profit decreased to N610.809million from N1.436billion in Q3’18.

Read also: NAICOM approves new directors for Standard Alliance Insurance Plc

The company reported net operating loss before tax (LBT) of N307.647million from net operating profit before tax (PBT) of N48.392million in Q3’18. The company recorded loss after tax (LAT) of N323.082million in Q3’19 as against profit after tax (PAT) of N15.764million in Q3’18.

The company’s net premium income of N1.228billion in Q3’19 represents a decline from N2.770billion recorded in Q3’18; while its net underwriting income of N1.266billion in Q3’19 is far less than N2.811billion in Q3’18. Total underwriting expenses stood at N655.449million in Q3’19 as against N1.375billion in Q3’18.

The shareholders approved the capital raise plan at the company’s 49th Annual General Meeting (AGM) held in Lagos.

The shareholders approved for the capital raise be by way of rights issue, private placement or to negotiate merger and acquisition or any other form of business combination or other arrangement or a combination of methods with Insurance companies and that the rights issue be executed at such price, time and on such other terms and conditions as the directors may deem fit.

At the meeting, the shareholders received and approved the company’s financial statements for the year ended December 31, 2018 and the report of Audit Committee, Directors and Auditors.