The Board of Standard Alliance Insurance Plc has suspended the Managing Director, Bode Akinboye, Inspenonline can exclusively report.
Bode’s suspension its was learnt was due to the crisis presently rocking the firm.
Investigations revealed that the firm is presenting struggling with financial losses, huge management expenses, bloated share structure; large fines for infractions; resignation; retrenchment; closure of departments amongst other challenges.
The firm’s 9-months financial performance ended September 2017, revealed a group loss before tax of N2.14 billion.
The underwriter has for four years between 2012; 2013; 2014 and 2016 recorded losses, while its management expenses soared. In 2016, it recorded Loss Before Tax of N1.21 billion; Loss After Tax of N1.34 billion and management expenses of N1.52 billion.
In October, some staff of the firm who where not comfortable with the management decisions resigned, thereafter, the firm retrenched 31 staff, leaving it with 208 as against 239 staff it had in 2016.
The firm, it was learnt has shut down some departments, prominent amongst them is the Corporate Affairs, which members of staff were forcefully moved to marketing.
The firm faced the wrath of the Nigerian Stock Exchange (NSE) as it was made to cough out N8.2 million monetary fines for failure to submit its audited 2016 account before the expiration of deadline given to listed companies to do so.
According to a data sourced from X-Compliance Report of the NSE dated 3rd of November, 2017, the company was said to have contravened the listing requirement of the exchange by its late submission of its financials.
The company, investigation revealed, has been consistent in payment of fines to the regulatory authorities for the last three to four years, yet have failed to declare meaningful dividend or bonus to its shareholders within these periods. A development, shareholders are unhappy with.
Information has it that the company also paid monetary fines running into millions of Naira to the National Insurance Commission (NAICOM) with these periods.
Consequent upon paying these monetary fines running into several millions of naira to the two regulators, it impacted negatively on their balance sheet as they were unable to declare meaningful dividend or bonus to their respective shareholders, a development some of its existing shareholders are unhappy with.
To rebalance its shareholding structure, the firm said it will embark on share reconstruction to pave way for repositioning, create more value to shareholders, improve the company’s standing in the market place and put it in a strong position to declare dividend.
According to the company, share reconstruction, also known as reverse stock split, will enable the company to reduce the number of its outstanding shares and increase its share price proportionately without affecting the total book value of those shares.