By Adedapo Adesanya
A top underwriter in Nigeria, AXA Mansard Insurance Plc, has reaffirmed its determination to continue to deliver strong earnings, which will, in turn, result in more value to stakeholders, including investors.
This reassurance was given by the Chief Financial Officer of the company, Mrs Ngozi Ola-Israel, following the completion of the regulatory-driven share capital increase.
The regulatory agency for the insurance industry in the country, the National Insurance Commission (NAICOM), had asked all operators to increase their minimum regulatory requirement on paid-up capital to accommodate more risks and deepen the struggling industry.
Last December, Axa Mansard obtained requisite approval from its shareholders at an Extraordinary General Meeting (EGM) and implemented phase one of the capital increase plan by executing a bonus issue.
As a result of the bonus issuance, the company’s share capital increased from N5.25 billion to N18.0 billion and consequently the number of shares outstanding increased from 10.5 billion to 36.0 billion.
This higher number of outstanding shares was expected to lead to increased share register management cost, impact per share metrics and possible wide-ranging implications on future capital raising exercises.
To manage the impact of the bonus share issuance, the firm implemented the second phase of the 2020 approved scheme after receiving the final sets of regulatory approvals which is a capital reconstruction through par value re-domination.
This has led to an increase in the nominal value of shares from N0.50 to N2.00 per share and consequently, reduced the number of outstanding shares from 36 billion units to 9 billion units whilst maintaining the existing shareholding structure.
The share reconstruction was completed on September 27, 2021, and the reconstructed shares were credited to each shareholder’s account. All shares continue to rank equally in all respects and continue to form a single class of ordinary issued shares of AXA Mansard.
While commenting on the exercise, Mrs Ola-Israel said. “We strive to provide our shareholders with the best possible return on their investment while also ensuring that we fully optimise the number of shares in stock.
“The reconstruction done maintains the existing shareholding structure as well as the shareholder value of each of our esteemed shareholders. We are positioned to continue delivering strong earnings with the support of all our stakeholders.”
Also commenting, the Chief Executive Officer of Axa Mansard, Mr Kunle Ahmed, said, “We are grateful for the continuous support of our shareholders during this process.
“We assure you of our dedication to the company’s continued growth and profitability through the continual delivery of exceptional services to our customers. The fundamentals of the business remain extremely strong with an enviable financial capacity that supports our growth ambitions.”
Dipo Olowookere