Underwriting firm, Linkage Assurance Plc, said it has met the first phase of the insurance industry capital requirement of N5 billion paid- up share capital as directed by the National Insurance Commission (NAICOM).
Addressing members of the National Association of Insurance and Pension Correspondents (NAIPCO) before their training programme in Lagos, Daniel Braie, managing director of the Company
who was represented by Emmanuel Otitolaiye, the firm’s chief financial officer (CFO), gave insight on how the company was able to meet the 50 percent recapitalization threshold.
He explained that as at December 31, 2019, Linkage Assurance paid-up capital was N4 billion, adding that to raise the remaining N1 billion, the firm at her 2019 Annual General Meeting (AGM) held on August 13, 2020, sought and received approval from Shareholders to raise the balance from the company’s accumulated retained earnings of N2.4 billion by the issuance of two billion bonus shares of N0.50 kobo to existing shareholders valued at N1 billion.
It should be noted that under the two phases segmented NAICOM’S recapitalization plan, all insurance companies are expected to meet 50 percent and reinsurance companies 60 percent of the mandatory recapitalization requirements on or before December 31, 2020. The new minimum paid-up Share Capital regime demands that Life insurance operators should raise their minimum paid up share capital from N2 billion to N8 billion; those in General business to jerk up from N3 billion to N10 billion while the reinsurers should increase from N10 billion to N20 billion.
Read Also: Insurance you need for your assets, businesses during civil unrest, riots
Braie said having met the N5 billion for the first segment, added that the company is working assiduously to ensure that the balance of N5 billion is made available before NAICOM’S September 30, 2021 deadline.
According to him, “Having succeeded in obtaining shareholders’ and Regulatory approvals, Linkage Assurance Plc has met the N5 Billion minimum capital requirements as at date earlier than 31 December 2020 deadline set by NAICOM.
“The balance of N5 Billion would have to be met on or before 30 September 2021 being deadline set by NAICOM and the Company has an array of options to comfortably achieve this before the deadline.”
On the Company’s strategic outlook taking into consideration various strategies including its intention and focus, he said “Our Strategy is to consistently grow our revenue and deliver strong returns and excellent customer experience while leveraging technology, strategic alliances, and capabilities/insights to provide world-class insurance & risk management solutions. Our guiding principles are our Core Values and vision. They underpin our desires, ambitions and aspirations aimed at reinforcing the trust of our stakeholders