GNI gets shareholders approval to delist from NSE
Underwriting firm, Great Nigeria Insurance Plc has received the approval of its shareholders to go ahead with its planned voluntary delisting of its ordinary shares from trading at the Nigerian Stock Exchange.
The shareholders, who spoke to our correspondent, gave their total support to the bard, said delisting from the Exchange at this time was wise decision taken by the board to enable it reposition the company and move it on the part of profitability.
According to them, board and management need time to concentrate and rebuild the company, instead of pre-occupying its self with looking for how to meet regulatory and compliance requirements, where other things needed to be done.
Speaking at the extra ordinary general meeting (EGM) held today in Lagos, Sunday Solomon Akinsoye a member of the independent shareholders Association of Nigeria (ISAN) said that the continued fining of the company by NSE is destroying the investment of minority shareholders.
He noted that the shareholders are not pleased with the regulator, adding that if such funds paid as fines are channel as dividend or for investment, shareholders will be better for it.
Also, Alex Adio, a shareholder also applauded the board of directors for the bold step they have taken to delist the company voluntarily from the exchange, adding that the company has what it takes to survive after the delisting.
According to him remaining at the exchange has not in any way benefited the company, while assuring that shareholders will support all move by the company.
Bada Aluko, chairman of the Company said that the decision to delist the company from NSE was as a result of no trading on the shares of the company for over 5 years now.
“Over the last 5 years, there is little or no trading activity with only 0.50 percent of shares held by the minority shareholders being traded. There has also been a measurable fall in trading volumes over the last 12 months with an average daily volume of circa 1,200 units during the period January 2017 to December 2017.
“Neither our company nor you, our esteemed shareholders are benefiting from the continued listing as shares are not getting any exit opportunity and their investments have been locked up and they find it difficult to dispose of their shareholders, Moreover, the company is bearing unnecessary cost in complying with its listing obligations
The shareholders also adopted the 2016 and 2017 financial accounts of the company at the annual general meeting which took place immediately after the EGM.
On its financial performance, he said its profit grew massively by 202 percent from a loss of N442.7 million in 2016 to a profit of N449.7million in 2017.
Gross premium of the company rose also to N3.02 billion in 2017 as against N2.21billion reported in the previous year of 2016; indicating a growth of 36.59 percent.
The company’s investment income appreciated 30.89 percent from N306million to N401 million in 2017; while value of the company’s total assets appreciated by 1.2 percent to stand at N10.12billion when compared to N10billion reported in 2016.
Shareholders fund also witnessed a 7.7 percent growth to stand at N5.89 billion as against N5.43billipn reported in 2016.
On her plans to improve profits for investors, Cecilia Osipitan, managing director/CEO noted that the company is re- engineered and more committed to dominating the retail market through continuous and consistent awareness using a motivated retail workforce, improved technology- driven applications and easily adaptable digital platform the ‘GNIOnGo’ to drive its sales.
“We will continue to improve our understanding of customer’s evolving needs and how they wish to be served.”