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Tag: Prestige Assurance

  • Prestige Assurance creates 14b shares to raise new capital

    Shareholders of Prestige Assurance Plc are meeting later this month to consider creation of additional new 14 billion ordinary shares and a new capital raising exercise to boost the capital base of the insurance company.

    Prestige Assurance plans to increase its authorised share capital from N3 billion of 6.0 billion ordinary shares of 50 kobo each to N10 billion of 20 billion ordinary shares of 50 kobo each through the creation of additional 14 billion ordinary shares of 50 kobo each.

    At the meeting this month-end, shareholders are expected to authorise the board of directors of the company to raise “capital by way most suitable to the company in line with the recapitalisation requirement of the National Insurance Commission”.

    The increase in authorised share capital is meant to create headroom for a new capital raising exercise. Prestige Assurance currently has total issued share capital of 5.38 billion ordinary shares of 50 kobo each out of its current total authorised share capital of 6.0 billion ordinary shares.

    Market analysts said Prestige Assurance might consider raising capital through a rights issue, the most preferred instrument by most fund-raising companies in recent period. The New India Assurance Company Limited, Mumbai, the precursor and founder of Prestige Assurance, holds 69.50 per cent majority equity stake in the Nigerian subsidiary while Leadway Assurance Company, an unlisted Nigerian insurance company, holds 11.47 per cent equity stake.

    Prestige Assurance had in November 2018 distributed 1.53 billion ordinary shares of 50 kobo each to its shareholders as bonus shares, almost restoring 1.6 billion ordinary shares that it had cancelled under a recent capital restructuring. The company distributed bonus shares of 41 ordinary shares of 50 kobo each for every 100 ordinary shares of 50 kobo each held as at the close of business on November 27, 2018.

    The company capitalised N782.57 million from its share premium account to pay for the new shares issuance. The scrip issue increased the company’s issued share capital from N1.91 billion or 3.82 billion ordinary shares to N2.69 billion or 5.38 billion ordinary shares.

  • Prestige Assurance’s net profit drops by 20%

    Prestige Assurance Plc suffered contraction in its profitability in 2018 despite considerable growth in the insurance company’s top-line. Net profit dropped by 20.3 per cent to N423.8 million in 2018 despite 37.7 per cent growth in gross premium to N4.66 billion.

    Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Prestige Assurance’s gross premium increased from N3.39 billion in 2017 to N4.66 billion. Profit before tax however decreased from N697.99 million in 2017 to N645.43 million in 2018. After taxes, net profit dropped from N531.84 million in 2017 to N423.8 million in 2018. With these, earnings per share declined from 9.90 kobo in 2017 to 7.89 kobo in 2018.

    Prestige Assurance had undergone a major capital restructuring in 2018. The insurance company had in June 2018 concluded share reconstruction exercise that resulted in cancellation of about 1.6 billion ordinary shares of 50 kobo each. The reconstruction was undertaken to remove bubble assets.

    Under the share reconstruction, Prestige Assurance had reduced its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This led to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance had stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Prestige Assurance in November 2018 distributed 1.53 billion ordinary shares of 50 kobo each to its shareholders as bonus shares, almost restoring 1.6 billion ordinary shares that it had cancelled under a recent capital restructuring.

    Prestige Assurance distributed bonus shares of 41 ordinary shares of 50 kobo each for every 100 ordinary shares of 50 kobo each held as at the close of business on November 27, 2018.

    With then current issued outstanding shares of 3.817 billion ordinary shares of 50 kobo each, Prestige Assurance issued 1.53 billion ordinary shares on the basis of 41 shares for 100 shares.

    The company capitalised N782.57 million from its share premium account to pay for the new shares issuance. The scrip issue increased the company’s issued share capital from N1.91 billion or 3.82 billion ordinary shares to N2.69 billion or 5.38 billion ordinary shares.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the Nigerian public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria. After successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is currently a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

  • Prestige Assurance seeks to increase share capital after reduction

    Prestige Assurance Plc is seeking to increase its authorised share capital to N3 billion of 6.0 billion ordinary shares of 50 kobo each.

    Shareholders of the insurance company are expected to vote today on special resolutions that will enable the board of directors of the company to create 1.55 billion ordinary shares of 50 kobo each.

    Prestige Assurance plans to increase its authorised share capital from N2.223 billion to N3 billion. Shareholders are also expected to vote on a resolution authorising the board of the company to distribute bonus shares of 41 ordinary shares for every 100 ordinary shares held by the shareholders.

    The company plans to capitalise N782.57 million from its share premium account to pay for the new shares issuance. The scrip issue will increase the company’s issued share capital from N1.91 billion to N2.69 billion.

    Prestige Assurance last week concluded share reconstruction exercise that resulted in cancellation of about 1.6 billion ordinary shares of 50 kobo each. The reconstruction was undertaken to remove bubble assets.

    The Nigerian Stock Exchange (NSE) on June 7, 2018 lifted the full suspension placed on trading in the shares of the company to mark the conclusion of the share reconstruction exercise.

    The NSE stated that Prestige Assurance had notified it that the exercise had been completed and the shareholders’ register updated accordingly before the Exchange decided to lift the suspension.

    Under the share reconstruction, Prestige Assurance had reduced its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This led to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance had stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria. After successful recapitalization in 2007 and subsequent rights issue in 2015, Prestige Assurance is a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

     

  • Share reconstruction: Prestige Assurance gets two-week suspension

    Firm to cancel 1.6b shares

    Prestige Assurance Plc will today be placed on a two-week full suspension during which there will be no trading on the shares of the company.

    The suspension is to allow the  company to mark out register and conclude its ongoing share reconstruction.

    Prestige Assurance Company Secretary, Abayomi Odulana, said the Registrars to the company was unable to conclude the updating of the company’s register of shareholders during the period earlier scheduled for the exercise. The company had been placed on full suspension in March to mark out register and conclude the share reconstruction.

    Odulana said during the suspension ending June 6, the Registrars would adjust the shareholdings of members to reflect the terms of the share reconstruction and update their registers with the Central Securities Clearing System (CSCS).

    Trading will resume on the shares of the company after the conclusion of the share reconstruction.

    Odulana assured that the share reconstruction would be concluded within the two-week period.

    Prestige Assurance is expected to cancel about 1.6 billion ordinary shares of 50 kobo each under a capital restructuring programme aimed at removing bubble assets.

    Under the share reconstruction, Prestige Assurance will reduce its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This will lead to a reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria.

    After successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

     

  • Prestige Assurance cancels 1.6b shares

    Prestige Assurance Plc has cancelled about 1.6 billion ordinary shares of 50 kobo each under a capital restructuring programme aimed at removing bubble assets.

    Official listing report by the Nigerian Stock Exchange (NSE) at the weekend indicated that Prestige Assurance has concluded its capital reduction with the cancellation of 1.6 billion ordinary shares and listing of the post-restructuring share capital of 3.817 billion ordinary shares.

    The company had earlier been  suspended to update its register of shareholders for the share capital reconstruction of the company.

    Under this, Prestige Assurance reduced its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This led to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance stated that the essence of the capital reconstruction was to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction would reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction would allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Shareholders of the insurance company had on Friday, August 18, last year at its 47th Annual General Meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Established in 1952 as a branch of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write  non-life insurance in Nigeria. To reflect the majority shareholding of the public in the company, its name was changed to Prestige Assurance Plc on September 24,1992 in line with the indigenisation decree passed by government of Nigeria. After successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has the majority equity stake of 69.5 per cent shareholding.

     

  • Prestige Assurance marks out register for 1.6b shares cancellation

    Prestige Assurance Plc and its professional parties have marked out the register of members to be used for the company’s imminent share reconstruction.

    The Nigerian Stock Exchange (NSE) had suspended trading and price movement on Prestige Assurance shares between last Friday, March 23 and Tuesday, March 27, 2018 to enable the company’s Registrars update the shareholders’ register for the company’s planned share capital reconstruction.

    Prestige Assurance plans to cancel about 1.6 billion ordinary shares out of its issued and fully paid up share capital under a share reconstruction that seeks to write off accumulated losses.

    Under the share reconstruction proposal, Prestige Assurance is seeking to reduce its share capital from N2.685 billion or 5.370 billion ordinary shares of 50 kobo each to N1.909 billion or 3.817 billion ordinary shares of 50 kobo each in the issued and fully paid up ordinary shares of the company.

    This will lead to reduction of N776 million or 1.55 billion ordinary shares. “The share capital so reduced will be applied in writing off the capital of the company which is lost or unrepresented by available assets,” according to a regulatory filing on the reconstruction.

    Prestige Assurance stated that the essence of the capital reconstruction is to enable it wipe out its accumulated retained losses of N776.511 million.

    The company noted that the reconstruction will reposition it on a trajectory for subsequent accumulated retained profit while creating more value to its shareholders.

    Besides, the reconstruction will allow the company to declare dividend and improve its perception in the market thereby making it more competitive.

    Its shareholders had, on Friday, August 18, 2017 at its 47th annual general meeting (AGM) in Lagos approved the share reconstruction and authorised the board of directors to take necessary actions to implement the share reduction.

    Established in 1952 as a branch office of The New India Assurance Company Limited, Mumbai, Prestige Assurance was incorporated as a limited liability company on January 6, 1970 and licensed to write all classes of non-life insurance in Nigeria. In order to reflect the majority shareholding of the Nigerian public in the company, its name was changed to Prestige Assurance Plc on September 24, 1992 in line with the indigenisation decree passed by the government. After a successful recapitalisation in 2007 and subsequent rights issue in 2015, Prestige Assurance is currently a subsidiary company of The New India Assurance Company Ltd, Mumbai, which has majority equity stake of 69.5 per cent shareholding.

  • Prestige Assurance projects N9b forecast for GPI by 2021

    Prestige Assurance Plc plans to boost its gross premium income by N9 billion in 2021, its Managing Director, Dr. Balla Swamy,  has said.

    He made this known at the presentation of the company’s ‘Fact behind the Figure’ on the floor of the Nigerian Stock  Exchange (NSE).

    The company’s gross premium income, he said, is expected to grow from N3.4 billion in 2017, N5.2billion in 2018; N6.6 billion in 2019; N7.5billion in 2020 and N9billion at the end of 2021.

    Swamy stressed that despite the harsh economic conditions faced with acute shortage of forex its firm still tried to record significant profit when compared with 2016 to 2015 and which is on the increase in 2017.

    He said:“The net premium of the company is projected to grow from 45 per cent in 2017 to 60 per cent by the end of 2021, while profit before tax will grow from N877million in 2017 to N3.078 billion by the end of 2021.

    “Profit after tax was also forecast to grow from N567million in 2017 to N2.093billion by the end of 2021.”

    On risk retention, he said the company’s risk retention stands at 42 per cent as at third quarter, ended in September 2017 (Q3) when compared to 43 per cent it reported in same period of 2016.

    He maintained that the company was technically viable to spread its assumption  risks with reinsurer, which guarantee its continuous existence.

    He called on the Federal Government to facilitate ease of doing business, at least, by amending the companies income Tax Act in relation to computation of insurance taxation, easy entry of foreign investment and provision of suitable environment, which guarantees return on investment (ROI).

    He explained that the company as at third quarter 2017 current ratio stands at 1.8 as against 1.9 reported in 2016, affirming that Prestige Assurance can confidently pay its liabilities without having recourse to borrow or disposal of assets. This, he said, is evidence in timely payment of claims.

  • Prestige Assurance projects N9b forecast for GPI by 2021

    Prestige Assurance Plc plans to boost its gross premium income by N9 billion in 2021, its Managing Director, Dr. Balla Swamy,  has said.

    He made this known at the presentation of the company’s ‘Fact behind the Figure’ on the floor of the Nigerian Stock  Exchange (NSE).

    The company’s gross premium income, he said, is expected to grow from N3.4 billion in 2017, N5.2billion in 2018; N6.6 billion in 2019; N7.5billion in 2020 and N9billion at the end of 2021.

    Swamy stressed that despite the harsh economic conditions faced with acute shortage of forex its firm still tried to record significant profit when compared with 2016 to 2015 and which is on the increase in 2017.

    He said:“The net premium of the company is projected to grow from 45 per cent in 2017 to 60 per cent by the end of 2021, while profit before tax will grow from N877million in 2017 to N3.078 billion by the end of 2021.

    “Profit after tax was also forecast to grow from N567million in 2017 to N2.093billion by the end of 2021.”

    On risk retention, he said the company’s risk retention stands at 42 per cent as at third quarter, ended in September 2017 (Q3) when compared to 43 per cent it reported in same period of 2016.

    He maintained that the company was technically viable to spread its assumption  risks with reinsurer, which guarantee its continuous existence.

    He called on the Federal Government to facilitate ease of doing business, at least, by amending the companies income Tax Act in relation to computation of insurance taxation, easy entry of foreign investment and provision of suitable environment, which guarantees return on investment (ROI).

    He explained that the company as at third quarter 2017 current ratio stands at 1.8 as against 1.9 reported in 2016, affirming that Prestige Assurance can confidently pay its liabilities without having recourse to borrow or disposal of assets. This, he said, is evidence in timely payment of claims.

  • Prestige Assurance targets N3.1b profit by 2021

    The management of Prestige Assurance Plc yesterday outlined the growth outlook of the insurance company with a projection that the company will grow its pre-tax profit by more than 251 per cent to N3.08 billion by 2021.

    Presenting the underlying facts about the operations of the company to the investing public yesterday at the Nigerian Stock Exchange (NSE), the management of the company indicated that strategic initiatives being taken by the management would ensure sustained growth over the next five years.

    According to the forecasts, pre-tax profit is expected to rise to N877 million by the end of 2017 and thereafter rise consecutively to N8.08 billion by 2021. Profit after tax is expected to increase to N596 million in 2017 and N2.09 billion in 2021. Earnings per share is projected to increase to 11 kobo by 2017 and 39 kobo by 2021.

    The company plans to grow its top-line continuously over the five year period with gross premium income expected to increase to N3.4 billion in 2017 and subsequently to N9 billion in 2021.

    Chief Financial Officer, Prestige Assurance Plc, Mr. Oluwadare Emmanuel, said the company’s strategic growth plan focused on prompt payment of claims to customers and dividend payment to shareholders.

    According to him, the company has restructured its balance sheet in order to be able to make dividend payments while it has implemented many digital transformation initiatives and robust software to ensure prompt claims payment.

    He added that successful launch of new products such as Prestige Mediclaim Policy, Prestige Salary Protection Shield and Travel Insurance (OMP), expansion of retail market reach by employing marketing associates and opening new branches were aimed at deepening the company’s market penetration and build a solid base for growth.

    Emmanuel said the outlook for the Nigerian insurance industry remains encouraging despite operating challenges.

    According to him, though Nigeria has shown positive signs of development in this industry with gross premium written doubled within 2006 to 2015, there is still room for more growth.

    “The transformation agenda of the present government supported by Central Board of Nigeria and that of NAICOM will definitely promote the sale of insurance policies. With more channels of distribution such bancassurance, web aggregator, digital marketing, micro insurance, mobile phone marketing, agency and one man shop will lead to high penetration of insurance to the grass roots, thereby creating opportunity for the industry to tap into the informal sector in order to increase the number of policyholders across the nation,” Emmanuel said.

    He however noted that there could be another round of recapitalization and consolidation in the industry as many insurance companies will require additional capital to enable them pursue their growth initiatives and to meet up with the impending regulatory risk based supervision and capital assessment.

    He pointed out that while ongoing reforms are geared towards enhancing transparency in the Nigerian insurance industry and improving the general perception and image of the insurance business in Nigeria, the Federal Government should facilitate the ease of doing business by amending the Companies Income Tax Act (CITA) in relation to computation of insurance taxation, easy entry of foreign investment and provision of suitable environment that guarantees Return on Investment (RoI).

    He outlined the challenges being faced by insurance companies to include low penetration, lack of trust, slow implementation and enforcement of compulsory insurances, fake policies in circulation and regulatory reforms.

  • Firm’s profit grows by 17%

    Prestige Assurance Plc has recorded a 17 per cent rise in its underwriting business for 2011.

    . The Chairman, Dr. Charles S. Sankey, stated this in his statement to the shareholders during the Company’s 42nd Annual General Meeting (AGM), which took place in Lagos last week.

    Sankey said: “Despite the challenging environment, I am happy to report another year of good performance by our company. Underwriting profit grew by 17 per cent from 2010, with the company earning N1.07 billion against the preceding year’s N912.3 million”.

    He also told the shareholders that the net operating income which stood at N1.7 billion for the reviewed year was also six per cent higher than the 2010 position which was N1.6 billion.

    Further analysis of the firm’s accounts shows that the company recorded a total of N4.273 billion as gross premium for in 2011 as against N3.874 billion recorded in 1010, giving an increase of N398.933 million or 10 per cent growth.

    However, the firm recorded decrease in profit before and after tax, divided, shareholders fund, earnings per share as well as net assets per share within the year under review.

    The profit before tax decreased from N830.869 million recorded in 2010 to N419.868 million in 2011, a decrease of N411.001 million or 49.47 per cent. Profit after tax stood at N255.990 million, down from N487.698 million in 2010, giving a decrease of 47.51 per cent or N231.708 million. Amount set aside for payment of dividend decreased from N128.999 million in 2010 to N50.166 million in the reviewed year, a decreased of 61.11 per cent or N78.833 million.