The Nation Newspaper

Tag: GNI

  • GNI building fire: LASEMA asks family members to register missing persons

    GNI building fire: LASEMA asks family members to register missing persons

    The Lagos State Emergency Management Agency (LASEMA) has responded to concerns expressed in certain quarters regarding persons reported missing following the recent fire incident at the Great Nigeria Insurance building on Martins Street, Lagos Island.

    In a terse e-statement, signed by the Permanent Secretary of LASEMA, Dr Olufemi Damilola Oke-Osanyintolu, the agency advised the family members to register their concerns at the Complaints Unit of the agency, where details would be carefully received and a consolidated list of reported missing persons compiled.

    Despite reports in certain quarters that the search had ended, Oke-Osanyintolu assured that “Search and recovery operation is ongoing.”

  • ‘GNI has not erred against SEC, NAICOM rules’

    Great Nigeria Insurance Plc has never received any warning, query or sanctions regarding insider trading from the Securities and Exchange Commission (SEC) or National Insurance Commission (NAICOM), which both provide regulatory framework for the company, Managing Director of the underwriting firm, Mrs. Cecilia Osipitan, has said.

    This followed allegations by the House of Representatives Sub-Committee on Capital Market and Institutions, following the public hearing on Wednesday, October 31, 2018.

    Mrs. Osipitan in a statement  in Lagos, said the allegation by the Sub-Committee was incorrect.

    She said it has come to the notice of the Board of Directors and Management of GNI that the House of Representatives Sub-Committee on Capital Market issued a statement on Monday, November 5, 2018 threatening to authorise SEC to take over the Management of GNI.

    She assured the company’s shareholders and the public that the organisation was compliant with all the rules and guidelines of the various regulatory agencies that oversee its operations making all the allegations of insider dealings, failure to pay shareholders’ dividends, tax evasion and failure to comply with corporate governance regulations inaccurate.

    She stated that the restructuring process put in place by the Board and management has boosted the firm’s retained earnings of circa from (N2.4billion) in 2009 to (N0.59billion) in 2017. This improvement in retained earnings was achieved through organic growth only.

    She added that the firm has also been meticulous about making tax remittances to both the state and Federal Government and has up-to-date receipts to corroborate this fact.

    While allaying the fears of all stakeholders, she said the firm will ensure that the misconception regarding its operations will be resolved with the Committee.

    She explained that the inability of the firm’s representative to attend the Committee’s meeting was unavoidable and same was duly communicated to the Committee. She further stated that the firm has forwarded to the Committee written detailed responses to all questions raised to set straight earlier communicated misrepresentations and will be willing to answer further questions that may arise.

    “Great Nigeria Insurance Plc is a compliant corporate entity and is not in any way associated with any of the allegations raised in the publication,” she said.

  • GNI’s minority shareholders get October deadline on delisting offer

    The board of Great Nigeria Insurance (GNI) Plc has given minority shareholders October 24 deadline to accept payment in consideration for voluntary delisting of the insurance company from the Nigerian Stock Exchange (NSE) or elect to be part of an unquoted company.

    In a circular at the weekend, GNI stated that shareholders who wish to sell their shares and exit the company as a result of ongoing process of delisting from the NSE may trade their shares at the secondary market or accept exit consideration being offered by the majority core investor in the company.

    Shareholders of GNI penultimate week approved a proposal by the board of directors for immediate delisting of the insurance company from the NSE.

    As part of the delisting process, Insurance Resourcery and Consultancy Services Limited (IRCSL), which owns majority equity stake in the company, is offering to pay cash consideration of 50 kobo per share for every share surrendered by minority shareholders. The exit price of 50 kobo is based on the highest price of 50 at which GNI has traded in the last six months.

    The total payment accruing to minority shareholders that elect to accept the exit consideration shall be collated on October 24, 2018, the deadline for the acceptance of the offer. Thereafter, payment will be made to the bank accounts of the shareholders within 24 hours.

    The board of the company assured that shareholders that intend to continue to be a member of an unlisted GNI shall be free to remain and they have no obligation to receive the exit consideration.

    In an explanatory statement on the proposed delisting, the board of the company noted that the voluntary delisting will shield it from any enforcement action that may arise as a result of the outstanding free float deficiency at the NSE.

    The board also noted that over the last five years, there has been little or no trading on the shares held by the minority shareholders, pointing out that there has also been a considerable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 shares during the period between March 2017 to March 2018.

    The board argued that shareholders were not benefiting from the continued listing as shareholders were not getting any exit opportunity and their investments have been locked up and they found it difficult to dispose of their shareholding.

    The board added that the company has neither benefitted from the continuing listing as its shares continue to trade at a significant discount to the intrinsic value.

    “Furthermore, through the voluntary delisting process, the company will be providing an exit consideration to minority shareholders who do not wish to remain in an unlisted company,” GNI stated.

    The board of directors said the delisting will afford the company opportunity to further an imminent corporate restructuring exercise to take advantage of emerging opportunities, noting that the company may consider re-listing on the Exchange in the future if the market conditions are favourable.

     

     

     

    According to the company, the voluntary delisting will not occasion loss of business opportunities as there are similar unlisted insurance companies who are commanding significant share of the insurance market.

    Also, minority shareholders will not lose their shares because of the voluntary delisting and such shareholders may retain their membership in the unlisted company. However, through the voluntary delisting, the minority shareholders – who do not wish to be members of an unlisted company – will have an opportunity to exit the company.

  • GNI earns N449m profit

    •Why firm is delisting from NSE

    Great Nigeria Insurance (GNI) Plc made Profit before Tax (PBT) of N449.7 million in the 2017 business year. This is an increase of 202 per cent from a loss  of N442.7 million in the previous year.

    This was announced at the 50th Annual General Meeting (AGM).

    The company also witnessed an increase of 36.59 per cent in its Gross Premium, which grew to N3.02 billion from N2.21 billion written in 2016.

    As at last December 31, the company’s total assets were  worth Nl0.12 billion, showing a 1.2 per cent increase on the Nl0billion value as at December 31, 2016, while the shareholders’ funds also witnessed a 7.7 per cent rise.

    On why the company voted to delist from the Nigeria Stock exchange (NSE), the company’s Chairman, Bade Aluko, said in the last five years, there was little or no trading with only 0.50 of the shares held by the minority shareholders being traded.

    He explained that there had also been a fall in trading volumes over the past 12 months with an average daily volume of 1,200 units from January to last December.

    He said: “Neither our company nor our shareholders are benefiting from the continued listing as shareholders are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholding. Moreover, the company is bearing unnecessary cost in complying with its listing obligations.

    “Already, our company’s free float stands at 16.03, significantly below the NSE’s minimum Free Float of 20.00. Although the NSE has granted our company an extension till May 2020 to cure the free float deficiency, it is highly unlikely that the free float deficiency will be cured at that time which may necessitate the NSE to take enforcement action and initiate a regulatory delisting.

    “Through the voluntary delisting of our company, we will be exercising a regulatory provision that will shield the company from any enforcement action that the Exchange may effect, for example by way of a regulatory delisting in light of the outstanding Free Float deficiency. The Voluntary Delisting will not occasion loss of the shares held by the minority shareholders as such the shareholders may retain the membership in the unlisted company.”

    He said through the voluntary delisting, the minority shareholders, who do not wish to be members of an unlisted company, would have an opportunity to exit the company.

    He stressed that the company believes that the successful completion of this process will herald  value creation for the shareholders.

    A member of the independent shareholders Association of Nigeria (ISAN), Sunday Akinsoye, said  the continued filing of the company by NSE was affecting the investment of minority shareholders.

    He noted that the shareholders were not pleased with the regulator, adding that if such funds paid as fines were channelled as dividend or investment, shareholders would be better for it.

    Another shareholder, Alex Adio also applauded the Board for opting to delist, adding that it has what it takes to survive after the process.

    According to him, remaining at the exchange has not grown the company. He assured that shareholders would support all moves by the company.

     

  • Core investor acquires Wema’s 75% stake in GNI

    Core investor acquires Wema’s 75% stake in GNI

    Wema Bank Plc has secured  approval of the Nigerian Stock Exchange (NSE) to sell its 75 per cent majority equity stake in Great Nigeria Insurance (GNI) Plc to Insurance Resourcery and Consultancy Services Limited.

    A document obtained by The Nation at the weekend indicated that authorities at the NSE, where both Wema Bank and GNI are listed, have approved the divestment. Under the transaction, a block divestment of 2.87 billion ordinary shares of GNI currently held by Wema Asset Management would be transferred to Insurance Resourcery and Consultancy Services, a relatively unknown firm.

    The divestment is valued at N1.44 billion at current market value of GNI, which currently has total paid up capital of 3.827 billion ordinary shares of 50 kobo each with a market capitalisation of N1.91 billion. GNI is trading at its nominal value of 50 kobo per share.

    GNI at the weekend indicated that Wema Bank was its core investor. “Besides many well meaning Nigerians ,who invested in Great Nigeria Insurance Plc, our other core investors are Wema Bank Plc and Odua Investment Group of Companies. Our relationships with these great groups have created a synergy for the growth of our business,” GNI stated in its corporate profile.

    GNI started operations in 1960 and its businesses include general and life insurance.

    Following the Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses, including GNI. The bank had since divested from Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. It also integrated operations of four subsidiaries into its core banking business including Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and Whyte Cleon Limited while it had 94.7 per cent stake in Independent Securities and 75 per cent in GNI.

    Meanwhile, the new core investor would be required to restructure GNI’s issued share capital to dilute the existing concentrated shareholdings of the core investors and allow more investments from the investing public.

    In the latest report on public shareholding status in quoted companies obtained by The Nation, the NSE indicated that GNI and 10 other companies were in violation of the listing requirement, which compels companies quoted on the main board of the NSE to ensure that a minimum of 20 per cent of its issued shares is in the hand of the general investing public.

    Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the main board is 20 per cent while companies on the second board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors, who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    The report indicated that GNI currently has 16 per cent of its issued shares in the hands of the general investing public.

    According to the report, the management of the NSE had given GNI a deadline of July 8, 2016 to free more shares for the general investing public.

  • Core investors acquire 75% stake in Nema’s GNI

    Wema Bank Plc has secured  approval of the Nigerian Stock Exchange (NSE) to sell its 75 per cent majority equity stake in Great Nigeria Insurance (GNI) Plc to Insurance Resourcery and Consultancy Services Limited.

    A document obtained by The Nation at the weekend indicated that the authorities at the NSE, where both Wema Bank and GNI are listed, have approved the divestment. Under the transaction, a block divestment of 2.87 billion ordinary shares of GNI currently held by Wema Asset Management would be transferred to Insurance Resourcery and Consultancy Services, a relatively unknown firm.

    The divestment is valued at N1.44 billion at current market value of GNI. GNI currently has total paid up capital of 3.827 billion ordinary shares of 50 kobo each with a market capitalisation of N1.91 billion. GNI is trading at its nominal value of 50 kobo per share.

    GNI at the weekend indicated that Wema Bank was its core investor. “Besides many well meaning Nigerians ,who invested in Great Nigeria insurance Plc, our other core investors are Wema bank Plc and Odua Investment Group of Companies. Our relationships with these great groups have created a synergy for the growth of our business,” GNI stated in its corporate profile.

    GNI started operations in 1960 and its businesses include general and life insurance.

    Following the Central Bank of Nigeria (CBN)’s banking regulatory regime that required banks to either divest from non-core banking subsidiaries or form a holding company to hold those subsidiaries, Wema Bank had opted to divest from its non-core banking businesses including GNI. The bank had since divested from Wema Insurance Brokers Limited, Wema Registrars Limited, Independent Securities Limited and Whyte Cleon Limited. It also integrated operations of four subsidiaries into its core banking business including Wema Asset Management Limited, Wema Securities and Finance Plc, Wema Homes (Savings and Loans) Limited and Wise Properties Limited. Wema Bank had 100 per cent equity stakes in the trio of Wema Registrars, Wema Insurance Brokers and Whyte Cleon Limited while it had 94.7 per cent stake in Independent Securities and 75 per cent in GNI.

    Meanwhile, the new core investor would be required to restructure GNI’s issued share capital to dilute the existing concentrated shareholdings of the core investors and allow more investments from the investing public.

    In the latest report on public shareholding status in quoted companies obtained by The Nation, the NSE indicated that GNI and 10 other companies were in violation of the listing requirement, which compels companies quoted on the main board of the NSE to ensure that a minimum of 20 per cent of its issued shares is in the hand of the general investing public.

    Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the main board is 20 per cent while companies on the second board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float.

    Free float, otherwise known as public float, refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors, who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

    Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

    The report indicated that GNI currently has 16 per cent of its issued shares in the hands of the general investing public.

    According to the report, the management of the NSE had given GNI a deadline of July 8, 2016 to free more shares for the general investing public.

     

     

  • GNI introduces PayDirect

    Great Nigeria Insurance Plc, an underwriting firm, has introduced PayDirect and Quickteller payment solutions to make it easier for its customers to pay for their insurance and financial services at any bank branch nation-wide.

    A statement by its Corporate Communications and Brand Manager, Oyinkansola Sobande, said the innovation in service delivery was introduced in a bid to make insurance more accessible to customers.

    She said the effort is geared towards reiterating the commitment of the GNI Brand to meeting and surpassing the expectations of its esteemed clients.

    Head, Information Communications and Technology, Fasasi Kaseem, said the new payment channels were introduced to provide  a secure and fast way of enabling customers make premium payments and renewals of insurance policies anywhere anytime.

    He said: “While PayDirect offers a customer the opportunity to complete an insurance transaction in any bank nationwide, Quickteller on the other hand operates on simple easy-to- do steps that are self-explanatory”.

    The Managing Director/Chief Executive Officer (CEO), Mrs. Cecilia O. Osipitan,  said the new payment solutions were adopted to enable customers pay for their services without stress.

    She said considering the fact that insurance is gradually becoming an integral part of our human existence coupled with the emerging innovations in the insurance industry, these payment solutions have become necessary to encourage the “Do it Yourself” attitude of the public.

    She mentioned that customers can now walk into any Bank branch nation-wide to pay for their respective policies on the PayDirect platform.

    To remain a major player in the industry and with a mission of “Giving you peace of mind by keeping our promises”, Great Nigeria Insurance Plc strive to ensure the delivery of exceptional quality service having created an effective and functional customer service desk.

    For Great Nigeria Insurance, the journey has just begun and the insurance industry is set to witness more innovative ways of doing insurance business in Nigeria.

  • GNI, Senator Adeola, Paseda, others for Ogun top magazine anniversary

    GNI, Senator Adeola, Paseda, others for Ogun top magazine anniversary

    The fourth edition of celebrity magazine, Ijebu News Xtra lecture series, is slated for Sunday, January 31, 2016 at the upscale Equity Resort Hotel, Ijebu Ode, and the PDP governorship candidate in the 2015 general election in Ogun State, Gboyega Nasir Isiaka, is scheduled to deliver the anniversary lecture titled ‘Fast-tracking Development in Ogun State, Using Inherent Human and Natural Endowments of Each ‘Zone’.

    Isiaka has had an eventful life and is still enthusiastic about the state of his state. Apart from his sojourn in politics, Isiaka, a fellow of the Institute of Chartered Accountant of Nigeria is a thoroughbred economist who has also carved a niche for himself in community development. Other prominent stakeholders in Ogun political development, who will also speak at the event, include Senator Olalekan Solomon Adeola a.k.a. Yayi, who is the Vice Chairman Senate Committee on Communication; Prince Rotimi Paseda, a chieftain of the Unity Party of Nigeria; Adewale Osinubi, the CEO Wesco Pools & Lottery and Alh Bidemi Rufai, Founder, Omo Mayodele Educational Foundation.

    A prominent chieftain of the All Progressives Congress in Ogun East and former Deputy Speaker of the Ogun state House of Assemby, Hon Tokunbo Oshin, will chair the event, while the erstwhile Chief Press Secretary to former Governor Otunba Gbenga Daniel, Mr Wale Adedayo, will serve as the compere.

    Baaroyin Dayo Rufai, the publisher of the magazine, argued that while a good number of such community-based tabloids and magazines in the state have gone extinct following the increasing harsh climate of publishing, dwindling sales figure, threat from web-based publishing, low advert patronage, among others, a few others have kept trudging on. Ijebu News Xtra has not only managed to survive the teething challenges of publishing but also boldly stamped its authority as the flagship of community magazine in Ijebuland, its target area.

  • GNI posts N903m profit

    • Unveils new board

    Great Nigeria Insurance Plc (GNI) has posted a profit after tax (PAT) of N903 million in its financial year ended 2012, representing a 119 per cent growth from the N399 million recorded in 2011.

    This is even as the company unveiled its new board members during the 48th Annual General Meeting (AGM) in Lagos following the conclusion of its divestment.

    The company also witnessed a growth in its gross premium, recording N2.88 billion and N2.4 billion in turnover.

    Total assets grew marginally at N8.43 billion in the year under review as against the N7.26 billion recorded in 2011, while N833 million was paid out as claims to its various customers.

    The new Chairman, Mr. Tokunbo Talabi, who made this known at the AGM, assured the shareholders of the board’s commitment to bringing to bear their various wealth of experience to ensure optimum performance by the organisation.

    The Directors are Mr. James Naiyeju, Mr. Bade Aluko, ArchBishop Felix Alaba Job, Mrs. FolusoOnabowale, Mr. Dapo Otunla, and Mrs. Cecilia Osipitan the Managing Director/Chief Executive Officer (CEO).

    Others are Mr. Rotimi Olukorede and Mrs. Roselyne Ulaeto.

    He said: “The company is evolving as all the indices point towards growth. The board is committed to its vision and mission and we will ensure sound fiscal discipline which will enhance profitability and growth.

    “The development of the domestic economy is a major desire of our company and we are eager to be among the leaders of change so as to enhance ultimately the purchasing power of all.

    “The expected continuous improvement in the operating environment will definitely serve as the pivot of our growth. We are committed to this growth. We intend to create wealth and meet the expectations of our various stakeholders.’’

    The Managing Director, Mrs. Cecilia Osipitan, said with the conclusion of the divestment process, the firm is now fully focused on growing its bottomline, implementing the re-engineering initiatives and customer service improvement programme’.

    She said following the Central Bank of Nigeria’s directive for banks with subsidiaries to either sell off their subsidiaries, or adopt a holding structure, Wema Bank Plc, the majority shareholder of the 54-year-old firm, decided to sell its stake in the company.