Economy
Shareholders Okay N6.5bn for Recapitalisation of Wapic Insurance
By Modupe Gbadeyanka
Shareholders of Wapic Insurance Plc have authorised the board of directors of the company to raise additional capital up to N6.5 billion so as to meet the new recapitalisation policy of the industry’s regulator, National Insurance Commission (NAICOM).
On May 20, 2019, the agency issued a circular to insurance firms operating in Nigeria to raise their capital base within 13 months or lose their licences.
This came months’ after NAICOM had cancelled its initial tier-based recapitalisation introduced last year. Stakeholders in the sector had kicked against the policy, which forced the regulator to dump the idea.
In the new policy, NAICOM said those in the general insurance category must raise their minimum paid-up share capital to N10 billion, while those in the life insurance segment should have N8 billion instead of the former N2 billion.
Also, the non-life insurance companies are to raise theirs from N3 billion to N10 billion, while composite insurance firms must raise their capital from N5 billion to N18 billion, with re-insurance companies expected to have N20 billion instead of N10 billion.
Wapic Insurance operates in the general and life categories and would be expected to meet the requirements if it hopes to continue to operate in the country.
In order to raise its capital from N8.5 billion to N15 billion, the board proposed the creation of 13 billion additional ordinary shares of 50 kobo each, which the shareholders approved at the company’s Annual General Meeting (AGM) in Lagos recently.
Chairman of the firm, Mr Aigboje Aig-Imoukhuede, a former banker, said the decision was in the best interest of shareholders, as it will enable the company to accommodate any share capital increase.
He assured shareholders that the company will emerge stronger by the end of the recapitalisation exercise, commending NAICOM on the capital base increase, stressing that insurance business requires funding to attract the right talent, build skills and grow the business.
Managing Director of Wapic Insurance, Ms Yinka Adekoya, said going forward, the company plans to up its drive for business excellence through sustainable practices, motivated by its commitment to customer satisfaction.
“While we are hopeful about our future, we are very conscious of the realities of geopolitical and economic volatility, regulatory challenges, foreign currency pressure and customer needs and consumption pattern.
“Wapic will continue to improve and emerge stronger than ever. Our current financial performance together with our firm commitment to improving our service delivery underlines our affirmation that our efforts to date at building an institution of repute have been successful,” she said.
In the 2018 fiscal year, Wapic Insurance posted a gross written premium of (GWP) of N13.9 billion, a 42 percent increase from N9.81 billion in 2017, while the underwriting profit rose by 40 percent to N2.2 billion.
However, the group experienced an 88 percent decline in profit before tax (PBT) to close at N187 million, negatively impacted by drop in investment and other income, and the growth in underwriting and operating expenses for the period.
The company paid claims amounting to N4.96 billion, a 30 percent increase from N3.82 billion paid out in 2017, underscoring the importance it attaches to its customers towards meeting their claims obligation.
By Dipo Olowookere
The Nigerian equity market showed no signs of slowing down, as it further appreciated by 1.30 per cent on Friday on the back of sustained buying pressure.
Unlike the preceding sessions, investor sentiment was bullish yesterday after the Nigerian Exchange (NGX) Limited ended with 43 price gainers and 26 price losers, implying a positive market breadth index, the first this week.
UPDC gained 10.00 per cent to close at N4.40, Academy Press also appreciated by 10.00 per cent to quote at N7.70, Haldane McCall improved by 9.97 per cent to N3.97, Zichis soared by 9.94 per cent to N15.60, and Wema Bank added 9.84 per cent to settle at N31.25.
Conversely, Meyer lost 9.92 per cent to sell for N16.80, Trans-Nationwide Express also crashed by 9.92 per cent to end at N7.90, C&I Leasing slipped by 8.53 per cent to N5.90, Omatek dipped by 7.34 per cent to N2.02, and eTranzact decreased by 5.28 per cent to N17.05.
When the bourse closed its doors to business, the All-Share Index (ASI) rose by 2,884.81 points to 225,722.49 points from 222,837.68 points, and the market capitalisation grew by N1.858 trillion to N145.335 trillion from N143.477 trillion.
A look at the activity chart showed that market participants transacted 627.6 million shares worth N44.5 billion in 55,232 deals during the trading day compared with the 667.9 million shares valued at N38.1 billion traded in 53,062 deals a day earlier.
This indicated that the volume of transactions went down by 6.03 per cent, the value of trades went up by 16.80 per cent, and the number of deals jumped by 4.09 per cent.
Access Holdings closed the session as investors’ toast, with a turnover of 75.6 million units worth N2.4 billion. UBA transacted 43.1 million units valued at N2.3 billion, Wema Bank exchanged 41.5 million units for N1.3 billion, Zenith Bank traded 38.4 million units valued at N5.2 billion, and Universal Insurance sold 29.5 million units for N35.9 million.
By Aduragbemi Omiyale
Mr Taiwo Oyedele has set some goals he intends to achieve as Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
While taking over from his predecessor, Mr Wale Edun, on Thursday, the tax expert assured that he has no plans to overturn some of the reforms already put in place by the former occupier of the seat.
In a message on Friday, he emphasised that, “Our immediate task is to consolidate these gains, deepen ongoing reforms, and ensure they translate into tangible benefits for all Nigerians.”
He promised to ensure fiscal discipline by embracing transparent and prudent management of public resources, while also harmonising revenue administration, broadening the tax base, reducing the burden on the vulnerable population, and supporting economic growth.
Mr Oyedele further said his other strategic priorities include creating a predictable and investor-friendly environment anchored on policy coherence, consistency, and clarity; and aligning efforts across all tiers and institutions to maximise policy impact.
He also said efforts would be made to deepen collaboration with the private sector and other key stakeholders for data-driven policy design, co-implementation, and feedback for continuous improvement.
According to him, “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results.”
“I look forward to working with colleagues across government, the private sector, and all Nigerians as we move from reform to result, accelerate growth and build a more stable, inclusive, and prosperous economy,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.23 per cent on Thursday, April 23, with the Unlisted Security Index (NSI) adding 8.99 points to close at 3,969.96 points against the previous day’s 3,968 points.
The rise in the share price of Central Securities Clearing System (CSCS) Plc by N2.86 to N69.34 per unit from N66.48 per unit raised the market capitalisation of the NASD bourse by N5.38 billion to N2.380 trillion from N2.375 trillion.
Yesterday, there were two price losers, led by Food Concepts Plc, which lost 29 Kobo to sell at N2.65 per share versus N2.94 per share, while UBN Property Plc dipped by 22 Kobo to N2.03 per unit from N2.25 per unit.
During the session, the volume of securities traded declined by 97.9 per cent to 451,522 units from 21.5 million units on Wednesday, the value of securities depreciated by 52.32 per cent to N23.6 million from N49.5 million, and the number of deals depreciated by 3.6 per cent to 27 deals from 28 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.5 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
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