NEM Insurance Plc is set to plan another capital raising exercise, as revealed in the two notices sent by the company to the Nigerian Stock Exchange (NSE) pertaining to its 48th and 49th Annual General Meetings.
In the Special Business Agenda for its 48th and 49th Annual General Meeting, it was stated “that on the recommendation of the directors, the shareholders authorise the directors to raise additional capital through the issuance of not more than 1,056,000,000 ordinary shares of 50 kobo each at 2.5 naira per share.
The company may have decided to raise capital as a result of the recent increase in capital requirements by the National Insurance Commission (NAICOM).
Capital requirements for life insurance firms was increased from 2 billion naira to 8 billion naira. Insurance firms underwriting general business have been mandated to shore up their capital from 3 billion naira to 10 billion naira.
Composite insurance firms, that is, firms underwriting both life and general business will raise their capital from the current 5 billion naira level to 18 billion naira. Reinsurance firms will move up from the current minimum capital of 10 billion naira to 20 billion naira.
Under the special business agenda, the company also said it “may give notice of its annual general meeting and other statutory notices, its balance sheet, (including every other document required by law to be annexed there to be considered at the company’s annual general meetings) in hard print or in electronic format to any person entitled to receive such notices, either by sending them to the person’s last known registered address, or by electronic mail to his/her last known email address”.