Universal Insurance Sets Re-Capitalisation Machine In Motion
With the approval obtained by the board and management of Universal Insurance Plc from the shareholders at its 49th Annual General Meeting (AGM) held in Lagos Tuesday, December 17, 2019 the company is set to deploy in motion, strategies that would see it raise meet the N10billion recapitalisation requirement as prescribed by the National Insurance Commission (NAICOM) for the general business category, in the ongoing recapitalization exercise,.
The board had sought and obtained the shareholders’ approval to raise the company’s capital through Right Issues, Share Reconstruction, to raise additional equity capital for the company up to the maximum limit of the authorized share capital, whether by way of special placement or public officer with or without a preferential allotment/or rights issue or a combination of any of them, either locally or internationally and upon such terms and conditions as the directors may deem fit in the interest of the company and subject to the approval of the regulatory authorities,”
“That in the event of over subscription of the offer/issue to capitalise the excess money and allot additional shares to the extent that can be accommodated by the company’s unissued share capital subject to the approval of the regulatory authorities and that the proceeds should be used for the same purpose as the offer/issue.”
The acting Chairman disclosed that the company has in its kitty, N6.5billion and would need N3.5billion to make up for recapitalisation requirement as a general business insurer.
On steps to meet up with the exercise and beat the June 30 2020 deadline, Okocha stated: “More discussion is ongoing but could not be discussed prematurely. We are also looking at Right Issues, the company is in discussion with core investors and probable foreign influence into your company.”
Okocha said it is the intention of the board and management to intensify the corporate strategy in order “to identify the needs of potential customers, their behavior and culture and have an attentive ear to market-feedback so to create products that will address them.
He disclosed that the company would continually invest in information technology so as to create an insurance driven by technology (INSURETECH) that will not only deliver services real-time and in seamless manner but will also deliver on the numbers, adding that the Universal brand has stood the test of time and the values created over the years are embedded in the loyalty and commitment the firm has enjoyed from all stakeholders.
“We intend to keep this Universal Insurance Plc. as a legacy for several generations to come. We are sincerely grateful to our treasured customers, brokers, agents and other stakeholders who have objectively trusted in the universal advantage over the years” , he said.
In the same vein, Mr Ben Ujoatuonu, the Managing Director and Chief Executive of the company craved the indulgence of the shareholders to approve that they, the board and management, go out there and raise the required funds so as to retain the company’s brand.