Setting the Pace in Recapitalization Exercise

Man signing a contract document

Allianz Nigeria Insurance Plc (AZNG) has assured its clients and members of the public of its readiness to comply with the National Insurance Commission’s (NAICOM) directive to all underwriting companies to recapitalize by 2020.

At a strategy session on September 6, 2019, Allianz Nigeria resolved to retain both its Life and Non-Life licenses, thus remaining a composite company, post-recapitalization.

“The expected time-line to completely execute the recapitalization plan is March 2020 and as expected, we are setting the pace in this market, maintain our status as a composite Insurance company and ensure timely execution of the plan”, Mr. Owolabi Salami, the Executive Director of Strategy and Administration at AZNG said.

However, Mr. Salami pointed out that AZNG would not initiate mergers with or acquire other underwriting companies stating that the Company will focus on growing the Allianz franchise, organically with the full support of the Allianz Group.

He further stated that Allianz Group, the parent company of AZNG, had demonstrated its commitment when it injected N5 billion as capital into AZNG in December, 2018”. “In the same vein, the Board of Directors of AZNG has also approved a resolution directing the Management of the company to raise the additional capital by way of a Rights Issue to existing shareholders of the Company”.

In line with the directive for capital injection, AZNG envisage several activities and engagements between the Board, Securities and Exchange Commission as well as NAICOM before the expiry of NAICOM’s directive, in order to ensure compliance with the recapitalization directive.

This includes the audit for the 2019 financial year, meeting of the Board of Directors and General Meeting of Shareholders, submission of Audited Accounts and Board Resolution to NAICOM, statutory deposit with Central Bank of Nigeria (CBN), and post capitalization exercise including updated CAC documents and evidence of deposit with CBN submitted to NAICOM.

Taking a brief look at the capital structure of the Company as at December 31, 2018, the share holders’ funds of Allianz stood at N9.6 billion.

The Allianz Group - headquartered in Munich, Germany - is one of the world's leading insurers and asset managers with more than 88 million retail and corporate customers. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from Property, Life and insurance to Assistance services to Credit insurance and Global business insurance. The Allianz Group manages over 650 billion euros on behalf of its insurance customers and an additional 1.4 trillion euros of third-party assets. Allianz holds the leading position for insurers in the Dow Jones Sustainability Index and in 2017, over 140,000 employees in more than 70 countries achieved total revenue of 126 billion euros and an operating profit of 11 billion euros for the Allianz Group.