Universal Insurance Plc has concluded arrangements for its proposed N3.2 billion rights issue, following the execution of transaction documents at a signing ceremony held in Lagos on Thursday.

The ceremony marked the completion of the preparation phase for the offer and cleared the path for existing shareholders to participate in the capital raise.

This is pending final approval by the Securities and Exchange Commission.

Under the proposed rights issue, the company plans to offer 2,666,666,667 billion ordinary shares of 50 kobo each at N1.20 per share on the basis of one new ordinary share for every six ordinary shares currently held by shareholders.

The company said that only shareholders whose names appeared in the register of members as of the close of business on March 30 would qualify to participate in the offer.

Speaking at the event, the chairman of Universal Insurance Plc, Mr White Jasper Nduagwuike, said the company had maintained steady growth over the past five years and expressed confidence in its future prospects.

He described the offer as a strong investment opportunity, noting that the company’s resilience over more than six decades had demonstrated its enduring strength in the Nigerian insurance industry.

“We have a very solid foundation. For a company that has spent over 60 years in the industry, survived economic cycles and industry challenges, and is still standing strong, it speaks volumes about our resilience,” he said.

According to him, Universal Insurance remained one of the few insurance companies established in the early 1960s that is still operational and continues to grow stronger.

Mr Nduagwuike explained that the ongoing recapitalisation exercise would further strengthen the company’s operations, improve its competitiveness, and enhance its market share.

He also urged stakeholders and shareholders to support the offer and ensure it is oversubscribed.

He said, “If fully subscribed, the rights issue is expected to strengthen the company’s capital base, improve its underwriting capacity, reinforce its financial position, and support strategic growth initiatives aimed at improving operational efficiency and deepening its market presence”. 

(NAN)