AIICO Insurance Plc says it has received shareholders’ approval to increase its authorised share capital from N10bn to N18bn.

A statement from AIICO said this was in line with the company’s preparedness to meet the new minimum capital requirement for the insurance industry.

It stated that at its extra-ordinary general meeting, the shareholders supported the plan.

The Chairman of the Board, Mr Kundan Sainani, stated that AIICO had received NAICOM’s “No objection” to its recapitalisation plan.

He disclosed that the company’s recapitalisation plan included a combination of private placement, rights issue and bonus issue.

According to the Managing Director, Mr Babatunde Fajemirokun, the private placement was at an advanced stage with a number of investors.

AIICO said the shareholders also approved amendments to the Memorandum of Association to reflect the addition of new investors.

Fajemirokun stated, “These are exciting times for us as a business and we are confident that the recapitalisation exercise will see the company emerge stronger, more resilient, with adequate capacity and competencies to continue to provide risk protection and value adding services to all our customers and stakeholders.”