Recapitalisation: Wapic shareholders approve increase in share capital

Shareholders of foremost underwriting firm, Wapic Insurance Plc, have given the board and management approval to increase the company’s authorised share capital ahead of NAICOM’s capitalisation deadline.

The shareholders, who unanimously gave the approval during the company’s 60th Annual General Meeting in Lagos, also commended the outgoing Chairman of the underwriting firm, Mr. Aignoje Aig-Imoukhuede, for stirring the affairs of the company positively.

Presenting the financial performance of the company to the shareholders the chairman said that Wapic grew from just over N4 billion gross premium in 2012 to close at N13.9 billion in 2018.

He said: “During the reporting period, underwriting profit grew 40 per cent to N2.1 billion as a result of premium growth and improved reinsurance technique. For instance, the negative impact of claims payment in 2018 was dampened by increased reinsurance recoveries.

“We continued to sweat our investments in technology and other assets enabling us to keep expense growth at 11 per cent, which when adjusted for inflation remained flat.”

He, however, said that despite the improved underwriting performance, sharp reversals in the company’s public equities portfolio mirroring the NSE Index’s 2018 negative correction led to significant drop in bottom line performance.

“Our associate company, Coronation Merchant Bank Limited continued to return good earnings, thereby enhancing the value of our private equity portfolio. We closed the period with consolidated net profits of N351 million. Our Nigerian business comprising our Life and non-Life franchise accounted for 88 per cent of group revenue,” he added.

Speaking further on the company’s business strategy, he said between 2012 and 2013, Wapic implemented a merger transaction and rights issueto raise sufficient capital to support its bold transformation agenda.

“As a result of these corporate actions, net assets stood at N14.1 billion by December 2013, positioning the company for as one of the sub-region’s most capitalised insurers.

“Thereafter, in line with our 2014-2018 corporate strategic plan, we commenced the implementation of several transformation initiatives. First, we carried out a detailed consumer research exercise to deepen our understanding of customer needs and market opportunities. These insights formed the basis of the market penetration strategy that we have implemented over the past five years.

“You will be pleased to learn that from a number 18 industrial ranking in 2013, the Wapic group ranks number 8 today,” he noted.

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