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Prestige Assurance Plc to raise authorized share capital to N10bn
To meet the recapitalization requirement as stipulated by the regulator of the Nigerian insurance industry, the National Insurance Commission (NAICOM), Prestige Assurance Plc has announced its intention to explore the most suitable way to increase the capital base.
NAICOM had on May 20, 2019, revised the minimum paid-up share capital requirement for all classes of insurers (insurance and reinsurance companies) operating in Nigeria. For General Insurance Business, to which Prestige Assurance Plc belongs, the amount was jerked up from N3 billion to N10 billion.
Existing insurance and reinsurance companies were required to fully comply with the new minimum capital requirement not later than June 30, 2020, while it takes immediate effect for new applications made to NAICOM by companies seeking to carry on insurance business in Nigeria.
The purpose of the recapitalization is to ensure that the sector stands on a stronger footing in order to be able to wither any headwinds and to handle big ticket transactions.
In a notification to the general public, Prestige Assurance Plc further stated that the its authorized share capital will be increased by N3 billion, bringing the total figure to N10 billion.
The new authorized share capital will be achieved via the creation of 14 billion ordinary shares of fifty kobo each which will equally with the existing shares of the company, the company said.
Among other activities, to be ratified at the underwriter’s 49th annual general meeting on July 29, in Lagos, include rephrasing Article 6 of the Memorandum of Association to read “the authorized share capital of the company is N10,000,000,000 divided into 20,000,000,000 ordinary shares of fifty kobo (.50k) each.” The Article of Association will also be amended to read same as the Memorandum of Association.
During the annual general meeting, shareholders are expected to receive and approve the audited result for the financial year ended December 31, 2018, declare a dividend and elect or reelect directors, among other resolutions.
