Investors nationwide have been advised to invest adequately in the ongoing Public and Rights Issues offer of AIICO Insurance Plc.
The N2.2 billion public officers and 1.4 billion Rights issues opened for subscription on March 1, 2006 will close on March 29 and April 7, 2006 respectively. Both offers are being sold at N2.00 per ordinary share.
Mr. Olasunkanmi Sobawale, senior manager, Information Technology of AIICO Insurance Plc speaking at the recent Customers Forum of the insurance company assured investors that investors on the stock guaranteed them real value for their money.
\"At the offer price N2.00 per share and earning per share (EPS) of 8.6, investors are assured of a good return on investment as an all year high-stock price is expected to double current market price of N2.39,\" he said. The company\'s net asset as at September 2005 was N4.47 billion.
Buttressing Sobowale\'s claim, Chief Dele Fajemirokun, the chairman of the company used his own personal experience to illustrate the good dividend that he enjoyed from his investment over the year in the company. He said he recouped his initial investment in the company within the first year of his investment through capital application and dividend paid by the company.
AIICO Insurance Plc, the largest life insurer in Nigeria and a major player in general insurance, is the first insurance company to raise funds from the capital market in a bid to meet the new capital requirement for insurance companies in Nigeria set by National Insurance Commission (NAICOM).
Established as American Life Insurance Company (AIICO) in 1963, it was incorporated in 1970 as a private limited company and converted to a public liability in 1989. It got listed on the Nigerian Stock Exchange in1990. AIICO Insurance Plc\'s principal activities are in underwriting life, general and special risk insurance businesses.
Fajemirokun expressed his appreciation to the customers for their support so far. \"AIICO Insurance Plc. has enjoyed from the customers\' tremendous support and I enjoin you to continue in that stead to ensure a successful recapitalisation process embarked upon by the company,\" he said.
He added: \"AIICO Insurance is embarking on a significant journey that will not only ensure the company meet the new capital base but also position the company as the leader in the industry. This will be through the provision of quality insurance and related financial services, generations of the highest possible returns to shareholders, maximum protection for policyholders and the best welfare of employees as well as contribute towards improving the level of social and economic development of the country.\"