Tunisia: AMI Assurances to increase capital to $31m
Source: Middle East Insurance Review | Nov 2021
AMI Assurances will increase its share capital to TND87.4m ($30.9m) from TND41m as part of the implementation of its development and financial restructuring plan adopted by the board of directors.
The insurer has obtained the green light from the Financial Market Council to issue a prospectus to raise funds totalling TND92.8m. The share capital of AMI Assurances will be increased by TND46.4m by subscription in cash and the issue of 46.4m new shares at a price of TND2 each.
AMI Assurances has been engaged since 2018 in a restructuring plan which would allow the company to strengthen its equity, improve its operating ratios and accelerate its development. The plan aims to control risks and make the auto business profitable; develop other insurance lines, in particular through bancassurance; ensure the efficient use of distribution channels; and boost the investment portfolio.
To facilitate this, the board of directors has proposed a recapitalisation exercise of TND185m.
The insurer closed the 2020 financial year with a net profit of TND600,000 against a loss of TND29.9m in 2019. According to forecasts, AMI Assurances is expected to make a net profit of TND800,000 for this year. M