International Energy Targets N6bn Capital Base
 31st JAN 2007

Energy insurer, International Energy Insurance Company Limited has said it was poised to attain a paid-up capital base of N6bn by the second quarter of 2007 to further enhance its post-consolidation competitive edge.

According to a statement made available to our correspondent on Friday, the company’s recapitalisation efforts have grown its shareholders’ funds to about N4.5bn even as the National Insurance Commission has been invited to verify and subsequently endorse IEI as one of the firms that have met the new minimum capital requirement. Post verification, IEI would have significantly exceeded the N3bn mark for general insurance business, where the company has displayed dominance and expertise over they years.

The Managing Director, Mr. Jacob Erhabor said the firm executed its consolidation strategy via a mix of private placement and merger arrangement with Rivbank Insurance Company Limited.

He said the firm’s private placement of 6.5bn ordinary shares of 50 Kobo each at 70 Kobo per share received far-reaching subscription levels indicative of the confidence of institutional and individual investors in the ability of IEI to maintain its leading position post consolidation.

According to him, “Our company is looking good with a verifiable shareholders’ fund of N4.5bn. Our paid up share capital target is N6bn. We are working hard at it and hope to achieve this goal not later than the end of second quarter of 2007.”

IEI had since increased its Authorised Share Capital to N6bn preparatory for its robust capital raising efforts as are now unfolding

On IEI’s merger with Rivbank, Erhabor said the process had since been concluded following the endorsement of the scheme of merger by the court last November. He said both firms had since commenced integration activities that have culminated in a single trade name (International Energy Insurance), fusion of staff and processes, and adoption of a single work culture and vision.

“Integration is usually one of the thorniest aspects of merger arrangements. But I am happy to inform our existing and prospective clients that we have achieved seamless integration that will see the alliance deriving huge mileage from the synergy that has been created,” he said.

According to Erhabor, IEI will pursue vigorous business expansion, information technology upgrade, robust service excellence and human capital development post-consolidation.

Meanwhile, IEI has already concluded plans to partner with Equity Life Insurance Company Limited to reinforce its life business portfolio for emerging opportunities, post-consolidation.

The company’s investment in Equity Life is geared towards taking advantage of emerging opportunities in personal line business through innovative product development and strategic distribution channels to all sectors of the insuring public.

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