International Energy Insurance Plc (IEI) stock is up a whopping 260% in the year 2023, making the Insurer, the best performer on the Nigerian Exchange this year.
IEI’s hot streak compares to a more subdued 6.07% gains for the broader market, as political uncertainty and high inflation put a dampener on bulls.
The loss making insurer said last year that Norrenberger Advisory Partners Limited (NAPL) had taken over its operations after it obtained the approval of the National Insurance Commission (NAICOM) to acquire 100% equity holding in the company.
In a disclosure by IEI, the development will enable Norrenberger to expand and strengthen its business model to improve its solutions and service distribution to clients across Nigeria.
The new owner will have to inject capital into the insurance company which has been recording recurring losses since 2013 as it is technically insolvent.
Norrenberger has obtained the final approval of NGX for the block acquisition of 50.6% equity in the first instance while it has commenced the process for approval of the Nigerian Securities and Exchange Commission for the Mandatory Take Over Bid to be able to acquire the remaining holdings of the Company.
Various engagements have been held with the representatives of the Retail Shareholders towards repositioning the Company.
With the acquisition, Norrenberger will expand and strengthen its business model to improve its solution and service distribution to Clients across Nigeria.
IEI announced in January 2023 the appointment of Mr Olasupo Oladehinde Sogelola as the Managing Director/Chief Executive Officer (MD/CEO) of International Energy Insurance Plc.
The new MD Mr Sogelola has his work cut out for him as IEI reported a loss of N34.94 million in its Full Year 2022 results, on the back of bloated Management expenses that came in at N724 million.
The firm reported negative shareholder’s funds of N11.68 billion, largely due to accumulated losses of N24.49 billion.
IEI’s stock closed trading at N1.37 per share for a market capitalization of N1.75 billion.