Goldlink Insurance Plc, one of Nigeria’s leading risk underwriting company, has unveiled plans to raise N10 billion through rights issue and ordinary as well as preference share.
The company’s Acting Managing Director and Chief Executive Officer, Mrs. Funke Moore, who gave this hint during a pre-Annual General meeting (AGM) media chat, confirmed that the National Insurance Commission, NAICOM, had approved the capital sourcing plan.
She explained that the money would be ploughed into restructuring the company’s business and return it to profitability, adding that N3.3 billion of the capital would be raised through rights issue and that shareholders of the company are enthusiastic to raise the fund.
The insurance expert said: “Our recapitalisation will place us in a vantage position and repositions the company to compete favourably.
“Since the reconstitution of the present board by the regulator in 2016, through regulatory intervention, we have been able to restructure and gradually returning to market reckoning and the upcoming annual general meeting is to enable us present to our shareholders our recapitalisation plan and this will enable us boost our business”, Moore added.
According to her, despite the inclement business environment of the country, the company last year reported N1 billion profit and has recorded similar financial and operational leverage in the current year, indicating that the company has recovered financially.
On the situation of the underwriting entity at the time she took over as CEO, Moore recalled that “when we took over we met huge unsettled claims and staff that is not motivated but today we have reversed the situation.”
To enhance its penetration into the insurance market further, she disclosed that the company last year opened six offices outside Lagos which had impacted positively on its influenced business transactions capacity.
She assured the shareholders that the money raised would be judiciously utilised to fully reposition the company’s operations and create more opportunities for its market penetration and profitability in the year’s ahead.