Globe Reinsurance

[edwardaigbokhan]

I ll applicate any information on this company because i took part in its PP of last year. it is not among the recapitalized list and also not among the liquidated list. Guys help o o o because i put heavy money on the PP.

[faoogoke]

Originally Posted by edwardaigbokhan

I ll applicate any information on this company because i took part in its PP of last year. it is not among the recapitalized list and also not among the liquidated list. Guys help o o o because i put heavy money on the PP.

Patience. That's all you need. It was not liquidated but was in the dark cos of it's inhability to me the recapitilization shareholders fund requirement. All that has been sorted ad should debut on the exchange "very soon".

[newton]

But do u hav d allotment details for the offer or were applicants fully alloted?

[tobenna]

Word is that everything was alloted.
Not sure though.

[olobade]

Originally Posted by newton

But do u hav d allotment details for the offer or were applicants fully alloted?

No Allotment yet. Though over subscribed. 13billion was realized. They are in the process of merging with NigeriaRE should be concluded on or before 31st mar. Then they can start the allotment.

[oadeoti]

Originally Posted by olobade

No Allotment yet. Though over subscribed. 13billion was realized. They are in the process of merging with NigeriaRE should be concluded on or before 31st mar. Then they can start the allotment.

Dear Bode,
Thanks for your info. But if the money realized was truly 13b why shld they need to merge?

Hear from you soon.

[newton]

Guess since they had entered merger talks b4 they raised the funds and that was d basis of their not being liquidated (similar case 4 Postal life insurance and a coulple of others in d process of merging wt capitalised firms) upon conclusion of the verification. They hav no choice but to sail along wt the merger.

[newton]

10 Questions for the CEO: Globe Re Insurance Plc
Posted Friday, February 22, 2008
Globe Re/Nigeria Re merger, what next for investors?


Globe Reinsurance Plc one of the five reinsurance firms that played in the pre-consolidation era of the reinsurance sub-sector of the Nigerian economy; has not yet told investors what will give them joy. In this interview with Proshare News/Investigations, Abiola Ekundayo, Acting Managing Director/Chief Executive Officer (Ag.MD/CEO) of the company answered some questions from Peter Obiora as regards the status of the company and the state of investors’ money in the Private Placement held in 2006. Excerpts.


What is the formal status of Globe Reinsurance Plc?


Globe Reinsurance Plc is still doing business, “we are still in business” Ekundayo said. The placement memorandum made available shows that the company is doing business with a number of international brokerage firms which include United African Insurance Brokers, Glanvil Enthoven Reinsurance Brokers Afro-Asian Insurance, to mention but a few. Apart from these, we are looking forward to a company that would compete not only locally; but internationally. We at Globe Reinsurance are trying to build a strong and formidable company.


Reinsurance is an international business that requires about N50 billion to manage. “Though the recapitalisation exercise as directed by the Federal Government (FG) through the National Insurance Commission (NAICOM); has ended before Globe Reinsurance raised their money to meet up the requirement” he said. Though Ekundayo could not confirm the amount raised as at the time he spoke to Proshare News/Investigations, but sources at Globe Reinsurance and Afribank Capital put the figures at between N13 billion to N15 billion.


During the recapitalisation exercise, Globe Reinsurance opted to merge with Nigeria Reinsurance in order to meet the minimum capital requirement of N10 billion for players in the reinsurance industry. The company, in the process of the merger, realized that Nigeria Reinsurance had some problems which they declined to disclose at the onset.


Why is Globe Reinsurance still merging with Nigeria Reinsurance?


This is on the insistence of NAICOM, we are integrating and they are moderating our company and Nigeria Reinsurance Plc. NIACOM urged us to continue with the merger and have given us a deadline to end the merger by end of March, 2008 or early April, 2008. “We are doing a Share Exchange Ratio (SER) and Akintola Williams and Delliote are working on this; auditing our accounts” Ekundayo disclosed. They just finished with Globe Reinsurance earlier this week and have moved to Abuja to conduct that of Nigeria Reinsurance. “The commission did not allow us to be alone” he noted.


What is the true position of Globe Reinsurance Private Placement and Investors funds?


Investors’ funds are with Afribank Capital Markets Limited, who are one of the joint issuing houses when we had our placement. Investors’ money are safe and intact; nobody issued any cheque to us at Globe Reinsurance, any cheque that was written and issued was to Afribank Capital. If investors want their money back, they should go to Afribank Capital, though we don’t want any money to be refunded, we are not in charge of investors’ money. “However, we have instructed Afribank Capital to invest the money in shares” he said. If any money will be returned, it will be with interest. However, we will do our best to accommodate so many people, “anybody that we could not accommodate; if at all, would be paid interest on the refund of his money. “We are as solid as rock with investors money” he said. Honestly, I would want to leave this office with a clean slate, just like my predecessor, the current Commissioner of Insurance, Fola Daniel left Globe Reinsurance with a good footprint; when he served as the MD.

How much did Globe Reinsurance get from the Private Placement?

To be sincere I do not have the figures with me, it is with Afribank Capital. Globe Reinsurance offered to investors by way of Private Placement (PP) six billion (6,000,000,000) ordinary shares of 50 Kobo each at 85 Kobo per share, between 29th August, 2006 to September, 2006. Our last financial report was in 2005 and the Auditor is currently working on the 2006 and part of 2007 annual accounts and reports. “The placement did well by way of oversubscription and they are still in the process of allotment of the shares, allotment has not been done, no certificate has been issued and no money refunded” he said. Some core Investors have not put in their money and have signified intension to bring in money, though he declined to mention these core investors.

However, contrary to what Ekundayo said to Proshare News/Investigations, the 2006 financial summary of the company posted on their website for the period ended 30th June, 2006 shows that Globe Reinsurance posted a Gross Premium of N1.174 billion, a Profit before Tax (PAT) of N323.5 million and a Profit after Tax (PAT) of N297.5 million in the period under review. This financial document posted on Globe Reinsurance website also shows that dividend has not been given to shareholders since 2004; the last was 2 Kobo given in 2003.

When are you getting Globe Reinsurance Listed on the floors of the Nigerian Stock Exchange?

We will do that as soon as we conclude the merger with Nigeria Reinsurance, we cannot get listed when we have not completed this exercise. The company had a paid up share capital of a little over N604 million with a shareholders fund of about N1.3 billion, the company is owned 80 percent by five insurance companies; which include AIICO Insurance Plc, Prestige Assurance Plc, Leadway Assurance Company Limited, NICON Insurance and Niger Insurance Plc; while the remaining 20 percent of shares were held by other Nigerian Investors.

Why is Globe Reinsurance not communicating Investors on these issues?

We have to be very careful on what we say; we do not want to raise any dust that would affect adversely our company. What I have to say is that their money is safe and no money has been refunded; not to our knowledge.

[chymex]

@Newton, I think it would have been better to just add the link to the Proshare page from where you picked up this info above.

[tobenna]

Thanks for the update, Newton.
Interesting interview, though frought with a few inconsistencies/errors.
Was the PP done in 2006 or 2007?
I bought mine in 2007.
How come their last financial report was 2005?
What happened to 2006/2007?

[pegheneji]

please i will be very glad if any one has info on the exchange ratio between globe re and nigeria re

[Abinishio]

House,
Please what is the latest on Globe Re.
The last info was that NICOM had given Globe Re & Nig Re to consumate on or b/4 31st May 2008.
This date is past, any update on current status?
My pepper rest for Globe re ohh.
Abeg, any update is highly appreciated.

AB

[billions]

Originally Posted by Abinishio

House,
Please what is the latest on Globe Re.
The last info was that NICOM had given Globe Re & Nig Re to consumate on or b/4 31st May 2008.
This date is past, any update on current status?
My pepper rest for Globe re ohh.
Abeg, any update is highly appreciated.

AB

....make your pepper no rest in peace ohh.amen!:

[bell02443]

can anybody in the say whether the merger had been consumated
31/05/08 has passed
i believe it should because Nig. re must find over 7 billion to remain as mandated by NAICOM and Globe from info had more than that from PP. Globe is in the strong but they can not do without the merger except they don't want trade anymore.
It is the possiblity of the merger that is keeping them on

[pegheneji]

Just to move this tread up, any thing new about globe Re, what is Jimoh/Ekundayo saying about it?

[olobade]

People,

Any news on GlobeRe and NigeriaRe?

[edwardaigbokhan]

All the good people of SMN, i hope say our money for Globe reinsurance PP NEVER enter bush ooooooooooooooooo?