Ahead of the June, 2020 deadline set by the National Insurance Commission (NAICOM) for recapitalization of insurance companies in Nigeria, Veritas Kapital Assurance Plc has approved to increase its Share Capital from N7 billion to N12 billion by the creation of 10,000,000,000 units of preference shares of N0.50K each.
Effective from the aforementioned date, NAICOM had increased the minimum paid-up share capital for each insurance company operating under the following classification as follows: Life Insurance companies N2 billion to N8 billion; general business insurance companies, N3 billion to N10 billion; composite business insurance companies, N5 billion to N18 billion; and reinsurance companies, N10 billion to N20 billion.
Further, the Directors were mandated to take all necessary steps including, initiating mergers and/or acquisition or any other form of business combination or arrangement with any Company/companies or Institutions) whether foreign or local for the purpose of shoring up the Company’s capital.
These were disclosed Tuesday at an Extra-Ordinary General Meeting of the company in Abuja by the company Secretary, Saratu Umar Garba.
She explained that the Directors were authorised to raise additional capital through an offer of up to 10,000,000,000.00 (Ten Billion ) irredeemable with seven years Convertible, Cumulative Preference Shares of 50k each by way of private placement terms to be approved by the Directors subject to obtaining the relevant regulatory approvals.
The Managing Director, Mr. Kenneth Egbaran, explained that the recapitalization work plans were steps in the right direction which are in the interest of the of the shareholders.
According to him, “Recapitalisation is good because the market is increasing in the part of investors. Agriculture is our strong priority over the years, and we have comparative advantage, and now we are tapping from that sector.
“We are doing this due to government investment in agric business, and we want to take the sector very serious. We are optimistic that increasing share capital would take the company to greater height.”