GLOBE-RE EXPRESSES CONFIDENCE IN ON-GOING OFFER

The management of Globe Reinsurance Plc (Globe Re) has said that it was satisfied with the way its ongoing private placement is moving. Specifically the management said it was optimistic that the shares on offer may be over-subscribed.

Managing Director of the Reinsurance firm, Mr. Fola Daniel, disclosed this in a chat with THISDAY recently. He said that preliminary report on the offer showed that the expectations of the firm may be surpassed at the end of the day. Reviewing the process further, he said that the preliminary report from the issuing houses has reinforced the management and board’s optimism that the shares may be over-subscribed, making the firm’s consolidation exercise much more easier than expected.

The offer, according to Daniel, was meant to shore up the company’s capital base ahead of its merger to enable “Globe Re and our merging partner pool a combined capital base in excess of the mandatory N10 billion minimum capital prescribed for reinsurance firms operating in the country by the Federal Government. Afribank Nigeria Plc and Tido Securities Limited have been given the mandate to sell 6 billion ordinary shares of 50 kobo at 85 kobo per share to discerning investors on behalf of Globe Re.

The Globe-Re boss stated that the shares on offer would rank pari-pasu with existing shares of the company except for the purpose of sharing its 2005 profit. Part of the company, would be used for enhancing working capital while the rest would be spent on upgrading working of the firm’s information technology platform, setting up a finance and investment subsidiary as well as establishing off-shore branches in Abidjan, Sierra Leone and Lusaka, Zambia.

Throwing more light on income projections in the prospectus to the offer, Daniel maintained that the firm was offering the 50 kobo each to discerning investors, adding that the pricing of the shares was meant to be a “bonanza to attract new investors into the firm”. Daniel defended the N9 billion income projections in the next two years, hinging it on the availability of a huge insurance market, anticipated enhanced capacity which would ultimately translate into bigger businesses and expansion projects already embarked upon by the company.

He further stated that with a N10 billion capital base, the company would be able to do more than 20 times the level of business that it is doing currently.

Globe-Re Commissions Regional Office in Abidjan

Globe Reinsurance Plc, one of the four recapitalizing reinsurance companies in Nigeria has formally commissioned its regional office in Abidjan, capital city of Cote D’ Ivore and pledged to fulfill its mission in that country to the satisfaction of Ivories generally.

The company hosted insurance practitioners and other stakeholders in that country to a dinner to formally usher in the reinsurance company. Addressing guests at the dinner, which held at the Hotel D’Ivore recently, the Chairman the reinsurance firm. Mr. S. O. Sunny-Oyekunle expressed delight at witnessing the opening of his firm’s regional office on the Ivorian soil.

He stated his expectation that his company would be doing good business with Ivorian and stated his conviction that the office would cover not only Cote D’ Ivore but other Francophone countries within the sub-region. Also address guest at the dinner, the Ivorian Commissioner for Insurance. Mr. Jean-Baptiste Kouame welcomes the company into the country noting,”it is a sign of confidence in the authority in this critical period when investors shy away”.

He also encouraged the representatives of Globe-Re to prove their professionalism because according to him, “there are many competitors in the market and there will be more”. Meanwhile, the Abidjan Regional Manager of Globe-Re, Mr. Jean-Baptiste Aizan stated his overflowing joy with the arrival of a truly African reinsurance firm in Cote D’Ivore promising to make it a matter of honour to fulfill his mission to the credit of the Ivoriens.

Before now, Globe Reinsurance Plc has explained that its foraying into Cote D’Ivore was “a practical demonstration of its commitment towards bringing its services closer to its clients across the continent, particularly in Francophone countries”

The approval for the regional office was earlier communicated to Globe-Re by a Director on behalf of the Registrar of Commerce of that country in a letter titled “Numero Du Registre De Commerce”, dated September 27, 2006 and with Reference No: JBA/02/DG/06. The letter that was addressed to the Deputy Managing Director of Globe-Re. Mr. Abiola Ekundayo confirmed the registration number of the off-shore office as “RCCM. No CL-ABJ-2006-B3998”.

Meanwhile, the firm has stated optimism over the outcome of the recent private placement of its shares, disclosing that a preliminary report on the offer was encouraging, as key investors in the country bought into the organization. Globe-Re was incorporated May 15, 1987 as a Private Limited Liability company and commenced operation January 1, 1988 with N10 million paid-up capitals. It was licensed to transact all classes of non-life reinsurance business at inception but was given the nod to do life reinsurance business December 1989 even as it converted to a Public Limited Liability Company October 7, 1998. At the last count, its authorized share capital peaked at N7.5 billion with N604.33 million fully paid even as it hopes to have in place a paid-up capital of N6.13 billion after the offer.

Globe Re’s CoteD’Ivoire office begins business

The face of insurance business was boosted in far away Cote d’Ivoire last week where one of Nigeria’s leading reinsurance companies, Globe Reinsurance Plc, commenced full reinsurance operations. Speaking with our correspondent on the development on Friday, the Managing Director, Mr. Fola Daniel, said he was happy that one of the promises made to the brokers at the last forum had been fulfilled, adding that all other programmes planned for the expansion of the company would be implemented as scheduled.

He said the presence of Globe Re in Abidjan would change the face of the industry in that country as wealth of experience garnered over the years would be deployed into the Francophone country. In the same vein, the Chairman of the company, Chief S. O. Oyekunle, expressed delight at witnessing the feat, especially as the company has been able to combine the event with the ongoing consolidation.

He was hopeful that the presence of Globe Re in the country would enable the company transact business with Ivoriens with the conviction that the operation would be far-reaching in the country and other Francophone countries. In his reaction, the Ivorien Commissioner for Insurance, Mr. Jean-Baptiste Kouame, said the coming of Globe Re management to establish in the country was a sign of confidence in the authority especially now that investors were shying away. Globe Re went to the market recently with an offer of six billion shares which has been adjudged successful by stock analysts.