Union Assurance prepares for listing, raises capital to N10 bn

The Mr. Theo Ekeh led Union Assurance Company Limited may have commence the processes leading to its eventual transformation into a public liability company.

This followed the resolution of the shareholders to raise the company’s authorized share capital to N10 billion. The amount represents a 100 per cent increase over the prevailing authorized share capital of N5 billion

Chairman of the company chief Batholomy Bassy Ebong who spoke at the company’s ninth annual general meeting in Lagos said that the increase in the share capital was part of long term strategies to make the company a bigger institution.

Chief Ebong who spoke through Chief Walter Mbah who is a board member of Union Assurance said that Union assurance Company Limited is structured as to be among the top leading insurance institutions in the country.

"We will continue to watch as the appropriate opportunities unfold so as to position your company amongst the first five in Nigeria within the next five years. We will also strive to increase our rating from the present "A" assigned by Augusto $ co., a reputable rating agency", the chairman informed.

Briefing shareholders on the rational for the capital increase, the managing director and chief executive officer of the company chief Theo Ekeh revealed that the company was inching towards listing its shares at the stock exchange. Chief Ekeh had gone ahead to assure shareholders that the proposed listing of the shares of Union Assurance would be accomplished before the end of next year stressing that there is the need to allow the larger investing public to share in the success of the company.

Earlier, chairman of the company had while presenting the Union assurance Company’s trading results for the year ended December 31, 2007 informed the company a gross premium income of N2.003 billion as against the N1.3 billion in 2006, an increase of 51 per cent.

"The retained premium grew by the same percentage as the as the gross premium due to the increase in our retention capacity following our successful recapitalization to more than N5 billion. The claim incurred in the year under review was N0.25 billion, which was slightly higher than the N0.24 billion incurred in 2006. The total assets increased by 214 percent from N2.3 billion in 2006 to N7.2 billion in 2007. Also, the shareholders’ fund increased from N1.18n billion in 2006 to N5.71 billion, an increase of 380 percent due mainly to the injection of funds by shareholders’ compliance with recapitalization directives. The profit before tax increased from N0.229 billion to N0.625, representing an increase of 172 percent while there was a growth of 257 percent in net profit having increased from N0.151 billion in 2006 to N0.540 billion in 2007", the chairman had informed.

Chief Ebong expressed confidence on the capacity of Union Assurance to continually exceed customers’ expectations.