Shareholders endorse Wapic’s bid to raise N10 billion

Shareholders of Wapic Insurance have approved the company’s plan to raise fresh capital of N10billion or its equivalent in any foreign currency.The shareholders, who gave their nod at the firm’s 58th Annual General Meeting, said this became necessary after the appraisal of its ongoing transformation initiative, which was adjudged to be highly successful and encouraging.

This is a proactive step towards getting the company ready and set for a much-anticipated regulatory increase in the minimum capital of insurance companies.“This (raising of additional capital), the company intends to achieve by way of rights issue, public offering, book building process or other methods, or a combination of methods, issuance of ordinary shares, preference shares, convertible loans, stocks, medium term notes. It also includes bonds or other securities in such tranches, series, or proportions, at such coupon or interest rates, within such maturity periods and on such terms and conditions as the directors may deem fit or determine,” the firm stated.

Addressing the shareholders, the Chairman, Wapic Insurance, Aigboje Aig-Imoukhuede, said the firm was seeking approval to raise additional capital.“This is particularly instructive in view of the recent adoption of the risk-based supervision model by the National Insurance Commission (NAICOM) and the directive to insurance companies to implement the Solvency II Capital Allocation model by 2018,” he stated.

Aig-Imoukhuede recalled that when a similar regulatory capital increase was imposed on the banking industry during the consolidation era, only the banks that were proactive in raising the required sum emerged winners.

“Shareholders’ approval of the additional capital raise for the company is a testament of their belief and confidence in the company. More specifically, the current transformational journey that the company embarked upon under its current leadership inspired shareholders and demonstrated in practical terms the centrality of the exercise to shareholder value creation,” the chairman said.

Responding, members of various shareholders’ associations, who spoke at the event, expressed their satisfaction with the company’s performance at this time of recession. They urged the Board and Management to continue to deliver incremental value for the company and all its stakeholders, especially in view of the additional fund being approved for its operations.