• Contact Us
  • About
  • Advertise
  • Privacy & Policy
Wednesday, May 25, 2022
  • Login
  • Register
Business Post
E3P Motor Insurance
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
  • Home
  • Insurance
  • Pension
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
No Result
View All Result
Business Post
No Result
View All Result
Home Insurance

Shareholders To New Investor: Come Take Your Place

Nwanne Ikemefune by Nwanne Ikemefune
January 31, 2021
in Insurance
0 0
0
Shareholders To New Investor: Come Take Your Place

L-R: Non Executive Dir LUR. Mrs Onome Adewuyi, MD/CEO Mr Ademayowa Adeduro, Chairman Mr Remi Babalola, Coy Sec Mr Stanley Chikwendu and Executive Dir Mr Olasupo Sogelola at the 51st AGM in Lagos.

0
SHARES
58
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Shareholders of Law Union and Rock Insurance Plc, have accepted an offer of N1.23 per share for every 50 kobo ordinary share they held from the new owner of the company, Verod Capital Management.

The board of Law Union and Rock secured the exit payment from its new investor in the quest to get full value for the investment of shareholders of the company, at the court ordered AGM in Lagos.

Basically, the offer was secured from Verod Capital to purchase the entire issued share capital of the company to which the company signed a Transaction Implementation Agreement (“TIA’) with Verod, through its investment vehicle, Kanuri LUR limited, which sets out the broad framework for the acquisition of the entire issued capital of the company by Kanuri LUR.

The development is due to the mandatory regulation by the National Insurance Commission (NAICOM), increasing the minimum paid up share capital of all insurance and reinsurance companies with a deadline of June 30, 2020. Based on this, the minimum paid up capital of Law Union and Rock was increased from N3 bn to N10 bn.

The TIA transaction is expected to involve the transfer of a total of 4,296,330,500 ordinary shares of 50 kobo each to Kanuri LUR or any other nominee of Kanuri LUR in consideration for a cash payment of N1.23 per share to the Scheme Shareholders.

With this done, Law Union will be re-registered as a private company limited by shares and thereafter, delisted from the Main Board of the Nigerian Stock Exchange (the NSE” or “Exchange”), and shares the of the company delisted from the Securities and Exchange Commission (“SEC”)

Chairman, Law Union and Rock Insurance, Mr Remi Babalola, during the combined meeting, stated that the company initially explored merger discussions with other insurance companies and communicated initial recapitalisation plan to NAICOM.

He however noted that the shareholders would not maximise shareholder value if such merger discussions crystallised, which led them to seek more optimal avenues for shareholders investments through acquisition by Verod, using the Kanuri LUR SPV.

The shareholder groups commended the board and management of Law Union and Rock Insurance on its performance and growth of the company, which made the company attractive to investors, also protecting the employees interests by hedging retrenchment.

The managing director, Law Union, Mr Ademayowa Adeduro, said the company has performed excellently since its acquisition by the consortium of investors (Alternative Capital Partners and Swanlux Solutions and Services Limited in 2012), who embarked on a transformation and restructuring process that has enabled the Company align its offerings to the unique needs of the various sectors of the economy.

Thereafter, he said the company turned from a loss-making position of Nl.3 bn in the financial year end 2012 to profitability of N250m in the following year and this has grown to N860m in 2019.

“The shareholders’ fund has also significantly improved over the same period growing from N3.5 bn in 2012 to N7.2 bn in 2019. With respect to the financial performance for 2019, Gross Premium Written rose by 6 per cent from N4.54 bn achieved in 2018 to N4.83 bn. The Net benefit and claims declined astronomically by 20 per cent, to Nl.28 bn from Nl.6 bn posted in 2018.

“Underwriting profit increased significantly by 54 per cent, to N0.98 bn from N0.64 bn posted in the preceding year. Based on the decline in net benefits and claims and significant increase in underwriting profit, the company’s profit before tax increased significantly by 91 per cent, to N0.94 bn from N0.5 bn recorded in 2018”, he said.

Finally, with the success of the AGM and Court Ordered Meeting, it is simply a matter of weeks for Law Union to complete its recapitalisation scheme.

Previous Post

Adeolu Adewumi-Zer Now In Charge At Allianz Nigeria

Next Post

SUNU Assurance Anticipates 36.4% In Q4 2020

Nwanne Ikemefune

Nwanne Ikemefune

Next Post
SUNU Assurance Anticipates 36.4% In Q4 2020

SUNU Assurance Anticipates 36.4% In Q4 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

NEM INSURANCE NEM INSURANCE NEM INSURANCE
  • Trending
  • Comments
  • Latest
ILAN Picture

Loss Adjusters Receive Charge To Match Speed Of New Developments

April 3, 2022
Custodian Investment To Acquire 51% Stake In UACN Property

Penetration: Operators Call For Insurance-In-Action

April 3, 2022
tope smart NIA former chairman

Insurance Milestone: A Beacon To Follow

April 3, 2022
ncrib logo

NCRIB And Universal In Pictures

August 23, 2020
How Strong Is The Reinsurance Sector Going Into 2021?

How Strong Is The Reinsurance Sector Going Into 2021?

349
Scib CEO Tinubu

Professionals Want Value Dimension Added To Enhance Compulsory Insurance

48
PenCom Trigger Lifts Transfer System Off The Starting Block With Split Responsibilities

Pension Funds Encounter First Waterfall

42
Linkage Assurance Aligns With Brokers For Growth

Linkage Assurance Aligns With Brokers For Growth

41
NAICOM Head office

Insurance Industry, NAICOM Commit All For Full Exploration of AfCFTA Benefits

May 25, 2022
Adegbayi A

Nigeria Liability Pool 2021 Performance Outpaces Insurance Results

May 25, 2022
Russia-Ukraine Conflict Thwarting Global Recovery

Russia-Ukraine Conflict Thwarting Global Recovery

May 24, 2022
Image Spin: Finance Minister Commissions No Place To Hide NAICOM Portal

FG Commends NAICOM Rolls Out More Challenges

May 21, 2022

Recent News

NAICOM Head office

Insurance Industry, NAICOM Commit All For Full Exploration of AfCFTA Benefits

May 25, 2022
Adegbayi A

Nigeria Liability Pool 2021 Performance Outpaces Insurance Results

May 25, 2022
Russia-Ukraine Conflict Thwarting Global Recovery

Russia-Ukraine Conflict Thwarting Global Recovery

May 24, 2022
Image Spin: Finance Minister Commissions No Place To Hide NAICOM Portal

FG Commends NAICOM Rolls Out More Challenges

May 21, 2022
Brexit Spin-off: Nigerian High Commission Promises Soft Landing For Nigerian Insurance Brokers

African Delegates To BIBA Secure African Issues Presentation In Subsequent Conferences

May 21, 2022
Africa Insurance Solutions Sought To Douse Uninsured Risks And Lift Penetration Level

NEM Insurance Positive Ticks Surround 2021 Performance

May 23, 2022
Image Spin: Finance Minister Commissions No Place To Hide NAICOM Portal

NAICOM Harvests Real Time Statistical Data, Raises Market Transparency

May 23, 2022
Image Spin: Finance Minister Commissions No Place To Hide NAICOM Portal

Image Spin: Finance Minister Commissions No Place To Hide NAICOM Portal

May 20, 2022
Access Holdings Plc Sets To Clinch Majority Stake In First Guarantee Pension

Access Holdings Plc Sets To Clinch Majority Stake In First Guarantee Pension

May 19, 2022
NAICOM Tells Operators To Match Its Speed, Take Over Secured Markets

College of Insurance Supervisors Charged To Harness Global Standards Fitting For West Africa

May 18, 2022
Brexit Spin-off: Nigerian High Commission Promises Soft Landing For Nigerian Insurance Brokers

Brexit Spin-off: Nigerian High Commission Promises Soft Landing For Nigerian Insurance Brokers

May 18, 2022

Sovereign Trust Performance Soars In Q1 2022, Rises By 37% Over 2021

May 16, 2022
NAICOM Tells Katsina Government And Citizens That Insurance Is A Major Factor For Life And Businesses

Katsina Govt Jabs Mild Insurance Enforcement, Embraces Call For Insurance Partnership

May 16, 2022
NAICOM Tells Katsina Government And Citizens That Insurance Is A Major Factor For Life And Businesses

NAICOM Tells Katsina Government And Citizens That Insurance Is A Major Factor For Life And Businesses

May 13, 2022
Business Post

We connect brands with buyers and sellers of insurance, pension and also project insurance and allied Businesses to the trending generation. We help the various public to adapt to the constant changes as it would impact, and also enable advertisers to connect, engage and target opportunities on line , in print and in person.

Browse by Category

  • Business Unlimited
  • Feature
  • Insurance
  • News
  • OIL & ENERGY
  • Pension
  • Travel

Recent News

NAICOM Head office

Insurance Industry, NAICOM Commit All For Full Exploration of AfCFTA Benefits

May 25, 2022
Adegbayi A

Nigeria Liability Pool 2021 Performance Outpaces Insurance Results

May 25, 2022
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2020 BusinessPost

No Result
View All Result
  • Home
  • Insurance
  • Business Unlimited
  • OIL & ENERGY
  • Feature
  • News
  • Contact Us
  • About
  • Advertise
  • Privacy & Policy

© 2020 BusinessPost

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In