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Crusader looks beyond N5bn


June 01, 2006/punch


Crusader Insurance Plc is to recapitalise above the stipulated N5billion for composite underwriting firms. The decision was borne out of the need to have enough cash outside the capital base, the company said

Addressing newsmen in Lagos on Wednesday, the Managing Director, Crusader, Mr. Abidoye Oyelami, said the board had resolved to take advantage of the merger and acquisition options.

He said the company would still go to the market to raise funds even if it met the requisite capital base on its own or with its merged partners.

According to him, “For me, the best option is merger and acquisition. But we will still go to the market. You need physical cash post-consolidation. You will still need more cash after capitalisation. Consolidation should not be the ultimate. The extra cash is necessary for expansion, training, information technology development and a host of other things.”

Speaking on the firm’s forthcoming annual general meeting on June 16 in Lagos, Oyelami said that a special distribution of the company’s shares in one of the telecommunication firms was being recommended for appropriation to existing shareholders.

He said the shares were bought at the rate of $1 per share which amounted to a total book value of N92,797,000 at the time of investment.

He said, “Being an unquoted investment, only the book value of N92,797,000 is reflected in the accounts whereas the current market value is significantly in excess of N92,797,000.

“The market value of the investment will be realised for the benefit of shareholders whose names appear on the register of members on the aforementioned date of June 2, 2006.”

The company’s performance for the year 2005 recorded an increase in the gross premium written from N1.02billion in 2004 to N1.13billion in 2005 and profit after taxation from NI80million in 2004 to N277million in 2005. It also recorded growth in total assets from N4.67billion in 2004 to N7.17billion in 2005.

The shareholders’ funds also increased from N667million in 2004 to N1.85billion in 2005.

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