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AXA Mansard remains under full trading suspension – NGX



AXA Mansard Insurance grows written premium rises 27% to N60.2bn

Suspension of trading in the shares of AXA Mansard Plc remains active as the company is busy with the reconstruction of its shares, the Nigerian Exchange Limited (NGX) has informed the investing public.

Management of the bourse said in its weekly report at the weekend that the suspension, which began on Thursday September 9, was effected pursuant to the proposed reconstruction/redenomination of the nominal value of AXA Mansard’s issued ordinary shares from 50 Kobo each to N2.00 each.

In the ongoing process, the company is consolidating every four shares held by each shareholder into one share, and consequently, its share outstanding will reduce by 75 per cent.

“The suspension is necessary to enable AXA Mansard to reconcile its share register towards implementation of the proposed share consolidation,” the NGX has said.

Earlier, a notice to the company’s shareholders by Mrs. Omowunmi Mabel Adewusi, the Company Secretary said following the Extraordinary General Meeting of AXA Mansard held in December 2020, the Company secured the approval of its shareholders for the share reconstruction/ redenomination of AXA Mansard’s shares from a nominal share value of N0.50 to N2.00.

The notice further stated that following the shareholders’ approval, the Company has also received necessary regulatory approvals from the National Insurance Commission (NAICOM) on Monday, 19 July 2021, and the Securities & Exchange Commission (SEC) on Monday, 16 August 2021 respectively.

“In order to effect the share capital reconstruction, the shares of the Company will be suspended from trading on the Nigerian Exchange Limited on Thursday, 9 September 2021, so that the shareholders’ register can be updated with the reconstructed shares. Once this is concluded, the suspension will be lifted and trading on the shares shall recommence,” the notice stated.

What this means is that the total shares outstanding would be reduced by 75 per cent, in which case every four ordinary shares of N0.50k held would be restructured into one ordinary share of N2.00k each.

For instance, if a shareholder currently has one million units, he or she will henceforth have 250,000 units of N2.00k each. Also, both the earnings per share (EPS) and the book value per share would increase.

Latest Financial figures

Checks by Business Metrics showed that as at the closing of trading last week, the underwriter had 36 billion units of shares outstanding worth N29.88 billion at N0.89 per share.

Meanwhile, records showed that AXA Mansard Insurance Plc recorded growth in its gross written premium to N37.18 billion in the first half of 2021 from N30.54 billion in the same period of 2020.

The company said in a statement that the net premium income increased by 11 per cent to N17.42 billion in H1 2021 from N15.67 billion in the same period a year earlier

Within the period under review, the company also recorded a profit before tax (PBT) of N3.16 billion, down by 28 per cent from N4.4 billion recorded in H1 2020. Accordingly, its profit after tax (PAT) fell by 37 per cent to N2.29 billion from N3.61 billion.

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