Regency notifies Regulators/investors on new status of Ghana Sub
Regency Alliance Insurance Plc has disclosed that its subsidiary in Ghana has changed status and therefore has no controlling shares in it, based on merger with another Ghana based insurance company, NEM Insurance Ghana Limited.
Information to this effect was released by the Nigerian Stock Exchange (NSE0 to the investing public on Monday.
The report disclosed that the merger was prompted by the Ghana Insurance regulatory commission directive for all insurance companies in the country to boost their capital base.
“Sequel to the directive of the National Insurance Commission, Ghana for all insurance companies in Ghana to recapitalize, our subsidiary in Ghana, Regency Alliance Insurance Limited had to merge with NEM Insurance Limited Ghana”
The company revealed that the merger has been successfully completed and the emerging company RegencyNem Insurance Limited Ghana is driving the company’s operations, delivering fist class insurance services.
It noted that as a result of the merger, Regency Alliance, no longer enjoy controlling shares in the new company, as its equity holding has reduced.
“The company I therefore now regarded as associate company of Regency Alliance Insurance Plc
Daily Times recalls that, under the recapitalization in Ghana, direct insurance companies are expected to increase their capital to 15 million cedis while Re-Insurance companies are to recapitalize to 40 million cedis.
About 43 companies as at the close of business in 2016 had met the requirement with eight others undertaking various strategies to avert a revocation of their licenses.
Managing Director of Regency Nem Insurance, Bode Oseni reiterated the need for insurance companies to re-strategise to increase their capacities and undertake large risk ventures.
He said that the convergence should culminate in delivering new standards for excellence in the insurance industry.
“I think it’s the right way to go and we are proud of the convergence; we are also satisfied over the fact that it is the first time that local insurance companies are coming together. We would like to work to make the coming together a good success,” Mr. Oseni stressed.
