FACTS BEHIND RESTRUCTURING PRESENTED BY Olufunke Moore (Ag. - - PowerPoint PPT Presentation

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FACTS BEHIND RESTRUCTURING PRESENTED BY Olufunke Moore (Ag. - - PowerPoint PPT Presentation

May 13, 2023 165 likes •406 views

FACTS BEHIND RESTRUCTURING PRESENTED BY Olufunke Moore (Ag. Managing Director/CEO) Goldlink Insurance Plc www.goldlinkinsuranceplc.com Disclaimer This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise

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FACTS BEHIND RESTRUCTURING

PRESENTED BY Olufunke Moore (Ag. Managing Director/CEO) Goldlink Insurance Plc

www.goldlinkinsuranceplc.com

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Disclaimer

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Goldlink Insurance Plc (the “Company”) shares or other securities. This presentation includes certain forward looking statements with respect to certain development projects, potential collaborative partnerships, result of operations, and certain plans and objectives of the Company including in particular and without limitation, the statements regarding potential sales revenues from business activities, both current and under development, possible launch dates for new projects, ability to successfully write new insurance policies, and any revenue and profit guidance. By their very nature forward looking statements involve risk and uncertainty which could cause the company’s actual result and developments to differ from those expressed or implied. Past performance is no guide to future performance and persons needing advice should consult an independent financial advisor.

www.goldlinkinsuranceplc.com

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OUR VISION

“A first class insurance company driven by innovation and experience”

www.goldlinkinsuranceplc.com

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PRESENTATION OUTLINE

 Corporate Profile  Our Journey So Far  Financial Performance  Our Focus  Response from Stockbrokers

www.goldlinkinsuranceplc.com

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CORPORATE PROFILE

 Goldlink Insurance Plc (“Goldlink”) was incorporated in April 1992

as a Private Company and converted to a Public Company in January 2007. Goldlink was listed on the Exchange by Introduction in 2008.

 Goldlink was licensed to operate as a full – fledged insurance

company in September 1993.

 The Principal activities of the company are: -

  • i. General Insurance Business
  • ii. Life Insurance Business.

 The Company is licensed to underwrite all classes of Insurance.

www.goldlinkinsuranceplc.com

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CLASSIFICATION OF BUSINESS

Life - 24% General - 76% General Life

  • 1. Classification is based on gross premium written as at 31 December

2014 audited financial statements www.goldlinkinsuranceplc.com

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 The Company’s current authorized share capital is N4.550 billion.  From its inception in 1993, Goldlink firmly established itself as a

resilient company with potential for growth.

 The company has sixteen (16) branches in addition to the head

  • ffice. It is our vision to continue to spread to all areas of viable

commercial activities in the country, while gradually moving out of areas with dwindling business opportunities.

www.goldlinkinsuranceplc.com

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THE BOARD

 Mohammed Mustapha Bintube – Chairman  Mr. Olanrewaju Sulaimon  Mrs. T

  • nbola Ashimi

 Mr. Gbolahan Olutayo – Managing Director/CEO  Mr. Adeyinka Olutungase – Chief Finance Officer www.goldlinkinsuranceplc.com

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TOP MANAGEMENT

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Mr Gbolahan Olutayo – Managing Director/CEO

  • Mrs. Olufunke Moore

– Executive Director

  • Mr. Adeyinka Olutungase

– Chief Finance Officer

  • Mr. Roland Awoyinfa

– Group Head, Technical

  • Mr. Dapo Owoeye

– Group Head, Marketing

  • Mr. Kunle Ajayi

– Group Head Research & Business Devt

  • Mr. Kamoru Sule

– Group Head, Life

  • Mr. Dayo Coker
  • Mr. Rasheed Ige

– Chief Accountant

  • Chief Internal Auditor
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OUR JOURNEY SO FAR

www.goldlinkinsuranceplc.com

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OUR JOURNEY

NAICOM intervened in 2012, appointing an interim Management Board (IMB) which:

 Prepared and had KPMG audited the financial

statements for years ended 2011, 2012, 2013 and 2014.

 Convened the 19th Annual General Meeting to receive

and approve these financial statements on 23 December 2015

 Established that the company will need cash injection to

meet up with the share capital requirements of the 2003 Insurance Act, as composite insurer.

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OUR JOURNEY

NAICOM, in February 2016, reconstituted the IMB, with the following mandates:

1.

To assume oversight responsibilities and perform normal duties of Board of Directors for sound management and growth of the company.

2.

Ascertain the financial state of the Company.

3.

Implement the AGM decisions on increase in authorized share capital and take steps to facilitate the recapitalization of the company.

4.

Exercise all powers to allot relevant shares in connection with the increase in authorized share capital resulting from (3) above.

5.

Ensure all necessary filings and statutory returns and other requirements of the law are complied with in the course of recapitalization, cash injection and allotment of the shares resulting from (4) above.

6.

Restructure the Company, align its staffing requirements with the realities on ground, streamline its expenditure pattern and take all other strategic actions to put the company on competitive edge and profitability.

7.

Carry out all other tasks that may be necessary to bring the company to sound management and

  • perational stability.

www.goldlinkinsuranceplc.com

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RESULTS OF THE INTERVENTION

The current IMB was inaugurated on 25th February 2016 and immediately with the management swung into action starting with the following areas:

a.

Reviewed the financial and operational status of the company and made a report to the Regulator.

b.

Reorganized the management with resultant return of vibrancy and efficiency in managing the Company.

c.

Took step to reinforce budgetary control as an effective tool for financial and expenditure management.

d.

Commenced the review of past financial and employment policy / practices.

e.

Commenced the process of sensitizing prospective investors, both existing shareholders and external investors to achieve the recapitalization mandate.

f.

A total of 2.5billion units of shares were discovered to be inappropriately

  • issued. 1.35billion units were recovered via surrender and forfeiture. The

recovered shares were returned to unissued share capital and available for reissue by the company. The balance of 1.2billion units are not available for immediate recovery.

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FINANCIAL PERFORMANCE

www.goldlinkinsuranceplc.com

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FIVE YEAR FINANCIAL SUMMARY

2015 * 2014 2013 2012 2011 N’ Million N’ Million N’ Million N’ Million N’ Million Net Premium 1,800 3,341 3,372 3,299 2,448 Claims Paid 1,757 1,775 1,013 1,136 1,125 Profit before tax (1,021) (415) 180 (466) (984) Profit after tax (1,021) (529) 69 (509) (1,225) Shareholders’ Funds

(4,764) (3,902) (3,426) (2,938) (2,091)

* 9 months results are unaudited

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PERFORMANCE TRENDS (2011 – 2015)

2015* 2014 2013 2012 2011

N ‘Million N ‘Million N ‘Million N ‘Million N ‘Million Gross Premium 2,065 3,113 4,352 5,404 3,937 Claims Paid 1,757 1,775 1,013 1,863 2,163 Investment Income 37 49 59 69 27 Profit before tax (1,021) (415) 180 (777) (2,045) Profit after tax (1,021) (529) 69 (824) (2,302) T

  • tal Assets

2,352 2,148 2,609 3,535 3,801 T

  • tal Equity &

Liability 2,352 2,148 2,609 3,525 3,801 Shareholders Funds (4,764) (3,902) (3,426) (2,938) (2,091)

www.goldlinkinsuranceplc.com 16 * 9 months unaudited

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OUR FOCUS

www.goldlinkinsuranceplc.com

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PLANS

 Source and inject funds to recapitalize the company,

through right issues and/or offer to other interested investor(s).

 Reinvigorate the marketing workforce to reclaim lost

market share, especially the Oil and Gas sector.

 Continue to adhere to best standards of regulatory

compliance and Corporate Governance.

 Improve on the Company’s expenditure profile.  Returning the company to a solvent position for

competitive businesses.

 Increase the use of Information Technology for efficient

business process and service delivery.

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CASHFLOW FORECAST

www.goldlinkinsuranceplc.com

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RECEIPTS

2016 2017 2018 N'million N'million N'million

BROKERS/DIRECT/CA SH (PREMIUM ) 5 ,2 80

7,500 10,000

COMMISSION CESSION 1 1 3

160 214

INV ESTMENT INCOME(CBN) 1 05

785 940

QUOTED EQUITY INCOME

27 31

SHORT TERM INCOME 1 4 4

560 640

NET OFFER PROCEEDS 8,000 TOTA L 13,642 9,032 11,825 PA YMENTS

  • REINSURERS/COINSURERS

7 1 5

1,016 1,354

COMMISSION PA ID 9 6 0

1,363 1,818

CLA IMS PA ID 1 ,3 02

1,367 1,636

INV ESTMENTS IN FINA NCIA L INSTRUMENTS 7 ,85 0

2,150 2,075

INV ESTMENTS IN FIXED A SSETS 2 83

400

INV ESTMENT IN PROPERTY

1,500

INV ESTMENT IN INFORMA TION TECHNOLOGY 6 1 8

878 1,171

OPERA TING EXPENSES 7 4 9

1,063 1,418

TA XA TION 1 1 6

140 105

PREPA YMENT 1 6

16 21

NA ICOM INSURA NCE LEV Y 5 5

75 100

TOTA L 12,664 8,469 11,199 NET RECEIPTS/(PA YMENTS) 9 7 8

563 626

OPENING CA SH BA LA NCE 4 5 6

1,434 1,323

CLOSING CA SH BA LA NCE 1 ,4 3 4

1,998 1,948

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Strong Brand & Goodwill

www.goldlinkinsuranceplc.com

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THANK YOU

www.goldlinkinsuranceplc.com

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Q & A

RESPONSE FROM STOCKBROKERS

www.goldlinkinsuranceplc.com