Ahead of the ongoing recapitalization exercise in insurance industry, shareholders of Cornerstone Insurance Plc, on Wednesday August 21, 2019, approved the request of the board of directors to raise additional capital of up to N10 billion, through the issuance of any form of equity instruments, whether by way of public offering, private placement, right issue or other methods they deem fit.
This is with or without preferential allot, either locally or internationally, at such dates and on such terms and conditions as determined by the directors. Shareholders also approved the increased in the company authorized share capital from NGN7.500 billion divided into 15 billion ordinary shares of 50 kobo each to twenty billion, divided into 40 billion ordinary shares of 50 kobo each by the creation of additional 25 billion ordinary shares of 50 kobo each, such new shares ranking pari passu in all respects with the existing ordinary shares in the share capital of the company.
Shareholders also gave the directors the go ahead to register the increased share capital with the Corporate Affairs Commission (CAC) in one or more tranches, series or proportions, and on such terms and conditions and in such circumstances as may be required of or determined by the directors, provided that the total authorized share capital does not exceed 40 billion ordinary shares of 50 kobo each.
Commenting on the company’s performance, some shareholders commended the board and management for moving the company earnings from loss position to profitability, including the new head office. While they cautioned the board to be care with the oil and gas business, because during the last recession, the sector was seriously affected.
Responding to shareholders, the chairman Segun Adebanji, explained that the company will do everything to comply with the regulation of the National Insurance Commission (NAICOM). Assuring that shareholders value will be protected. On his part the Group Managing Director Ganiyu Musa added that the picture of 2019 earnings looks interesting.
Cornerstone Insurance which share price is currently selling at 20 kobo at the close of business on Wednesday August 21, 2019, was incorporated on 26th July 1991 as a private limited liability company and became a Public Limited Liability, quoted on the Nigerian Stock Exchange in 1997. The company was established to conduct Insurance business in a professional, ethical and customer-focused manner and has remained committed to these values over the years.
The Company is licensed and re-certified by the National Insurance Commission (NAICOM) to do both General and Life businesses and the classes of Insurance business we currently undertake include the following: Motor Vehicle, Aviation, Marine, Engineering All Risks, Asset Protection, Liability to Third Party, Oil & Gas, Group Life, Credit Life, Mortgage Protection, Term Assurance, Wealth Creation Products and Takaful (Islamic Insurance)
The company’s Authorized Share Capital and Market Capitalization is N7.5 billion and N5 billion respectively, while the Shareholders’ Funds is N6.2 billion as at December, 2017. The total assets of the company are in excess of N20.80 billion.