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.