Prestige Assurance and Consolidated Hallmark Insurance have obtained approval from the Nigerian Stock Exchange to increase their capital The two insurers intend, hence, to comply with the new requirements imposed by the National Insurance Commission (NAICOM).
Prestige Assurance is expected to issue 13.47 billion new shares, for a total amount of 6.735 billion NGN (18.7 million USD). All of these shares will be acquired by its two main shareholders, New India Assurance (69.8%) and Leadway Insurance (30.2%).
Consolidated Hallmark would issue 2.03 billion shares, for a total of 1.056 billion NGN (2.9 million USD). Two other companies will follow in the footsteps of Prestige Assurance and Consolidated Hallmark.
The shareholders of AIICO Insurance and Sunu Assurances Nigeria also plan to meet in Q1 2020 to discuss the implementation of a similar recapitalization process. All insurance companies have until December 31, 2020 to increase their minimum capital [4] to 20 billion MGN (55 million USD).