Allianz Group fully recapitalizes Nigeria operations to meet NGN 18Billion threshold
Lagos- 29 September 2021
Allianz Nigeria has announced an additional captial injection of NGN9.15billion from its shareholder, Allianz Africa holding GmBH ( a legal entity of Allianz Africa). This has elevated the capital base of the company above NGN 18billion requirement. The company is in the process of completing all regulatory proceedures for recognition of the capital inflow. Additional shares are to be issued and allotted to all shareholders.
This follows the announcement made last December of an increase in the company's authorized share capital from NGN10billion to NGN18.5billion. To accomplish this, the company had created 17billion ordinary shares to accomodate the first inflow of capital.The first tranche of shares had been issued and alloted in favor of the sharholder, Allianz Africa GmBH.
In 2019, The National Insurance Commission (NAICOM) of Nigeria announced the recapitilization of insurance and reinsurance companies operating in the country. The minimum capital base for life and general insurance companies has been increased from NGN2billion and NGN3billion to NGN8billion and NGN10billion respectively.
The local insurance regulator NAICOM, had mandated all composite operators to shore up their capital base to NGN18billion by 30th September 2021. Whereas there have been legal interventions towards the implementation 'Allianz has been renowned globally to for absolute compliance with regulatory guidelines', noted the Chief Executive Officer Adeolu Adewumi-Zer. 'In order to err on the side of caution and with the full support of our parent group, we successfully imported our capitial ahead of the stipulated deadline'.
Allianz Nigeria had since last year embarked on a restructuring to improve operations and strengthen market share. In December 2020, the entity had reconstituted its shareholding and gone private to make Allianz the sole investor and further streamline business operations.
Chief Operating Officer, Abimbola Alabi expressed that capital will be employed in expanding the retail segement of the business to position for the explosive retail growth already being experienced in the market
"Since this year, we have systematically been investing in digital channels to bring insurance products home to emerging consumers", explains Chief Customer Officer Tunji Oshiyoye.
"2022 will see a deepened focus on technology tools and channels to make our insurance products simple and affordable". He also noted that attention is given to brokers who are key customer acquisition partners for the corporate market. Allianz Nigeria was the headline sponsor for the Nigerian Council of Registered Insurance Brokers (NCRIB) Abuja Area committee's dinner in August
"We are serious about our presence in Africa", Adeolu affirms, "and this significant capital outlay by the Allianz Group to strengthen solvency of its local operations is an unambiguous signal that Allianz is here to stay in Nigeria"