AIICO Insurance Plc ( AIICO
) has opened discussions with an investor on a Non-Binding basis for investment in the Company according to a statement released by the Company.
AIICO Insurance is one of the oldest Insurance Companies of Nigeria and acquired Lamda Insurance Company (Photo) along with NFI Insurance Plc in 2007.
The stock price of AIICO
following the acquisition jumped above N 7 per unit before the market crash of 2008-2009.
Current stock price of AIICO
is 57 Kobo per unit which is a far cry from the value the Company holds in the Insurance eco system of Nigeria. Even the book value per share is more than double the current stock price.
The Company paid a dividend of 2 Kobo for last year which was a very difficult year for the Insurance industry of Nigeria.
The Company owns a subsidiary in name of AIICO
CAPITAL LTD which is an asset management Company offering Investment funds to the public.
AIICO also owns a controlling stake in Multi-shield Limited, and a 19% stake in Healthcare International Limited (both healthcare management organizations (“HMOs”)
The stock is clearly undervalued at 57 Kobo but investors in Nigerian Stock Exchange show no belief in the Insurance sector and shares of AIICO
are at a receiving end of that reality.
Clearly these investors who are in talks with AIICO
choose to see things from a different perspective.
It should also be noted that International Finance Corporation has already invested in AIICO
in the recent past.
reporting for easykobo.com on Tuesday, August 22 2017 from Lagos, Nigeria