Shareholders of Sovereign Trust Insurance Plc, (STI) have approved the board of directors request to increase the authorized share capital of the company from N7.5 billion to N10 billion, by creation of five billion ordinary shares of 50 kobo each ranking paripassu in all respects with the existing ordinary share of the company.
This was one of the key highlight of the company 23rd Annual General Meeting (AGM) held in Lagos on Thursday. Addressing shareholders, the chairman Mr Oluseun Ajayi sexplained that the insurance sector, like every other sector of the economy in the last financial year struggled to overcome the challenges posed by the lingering effects of the economic recession experienced in the previous year.
He added that the situation left businesses in a stagnated position and eroded the purchasing power of Nigerians thereby slowing down their urge for insurance. Ajayi harped that in preparing the organization for the challenges of the future and in response to the ever evolving dynamics of the marketplace, the company embarked on a five-year strategic journey.
‘’It is important to state our company’s resolve to adequately operate in the Tier- 1 category with the plan of increasing our capital base both organically and inorganically before the commencement of the Tier Based Minimum Solvency capital regime,” he added.
The company was incorporated as a limited liability company on 26 February 1980 and commenced business on 2 January 1995 as a non-life insurer with an authorized share capital of N30 million and fully paid up share capital of N20 million following the acquisition and recapitalization of the then Grand Union Assurance Limited.