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”, 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 “, 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.