Wapic Insurance Plc has secured the approval of its shareholders to raise the company’s authorised share capital from N8.5 billion to N15 billion.
The development came ahead of the National Insurance Commission (NAICOM) deadline for insurance companies to recapitalise or lose their licenses.
Disclosing this during the company’s recently-held annual general meeting, the Chairman of the board of directors, Aigboje Aig-Imoukhuede, stated that the development is in the best interest of the shareholders.
The Detail: The company’s share capital was increased by the creation of 13 billion additional ordinary shares of 50 kobo each.
What does this mean? As a result of the secured approval to increase the share capital, Wapic Insurance, which provides general insurance as well as life insurance to Nigerians, will meet minimum paid up share capital of N10 billion for general and N8 billion for life ahead of the deadline.
The Backstory: Recall that NAICOM had recently announced an increment in the minimum paid-up share capital of insurance and reinsurance firms.
In the circular signed by NAICOM‘s Director of Policy, Pius Agboola, it disclosed that the new minimum paid-up share capital requirements will become effective from the commencement date of the circular for new applications, while existing insurance and reinsurance companies shall be required to fully comply not later than Tuesday, June 30, 2020.
The future of Insurance firms: Insurance companies in Nigeria are currently making concerted efforts to raise their capital bases. It is expected that there will be a flurry of right issues, public offers, and even IPOs following this development. Just like it happened in the banking sector during Soludo’s era, some insurance companies may even need to consider mergers and acquisitions in order to meet the capital requirements.
About Wapic Insurance Plc: Wapic is one of the leading insurance companies in Nigeria. It was established in 1958 to offer various packages covering life, general and special risk businesses.
Wapic Insurance Plc‘s share price last traded at N0.41 on the Nigerian Stock Exchange.