There has been an increase in foreign equity participation in the Nigerian insurance industry due to renewed interest by international investors, investigations have shown.
According to figures from the National Insurance Commission, foreign equity holdings have risen to 62.8 per cent in at least seven insurance firms.
Many investors are also negotiating with the underwriters on how they can invest in the local market.
The Commissioner for Insurance, Mr. Fola Daniel, confirmed that there had been an increase in foreign equities in the country’s insurance industry.
“Companies with foreign equities have increased in the insurance sector, generating substantial foreign direct investment,” he said.
Some of the equity investors include NSIA Participations S.A Holdings, which has 99.15 per cent shareholding in ADIC Insurance; Mutual and Federal Insurance Company of South Africa, which has 70 per cent holding in Old Mutual Insurance; and Old Mutual Nigeria Services Company, with 70 per cent stake in Old Mutual Life.
UBA Capital Holding Limited/MMI Holdings has 50 per cent stake in UBA Metropolitan Life, while Assur Africa Holdings has 67.68 per cent stake in Mansard Insurance.
Others are FBN Holdings and Sanlam Group SA with 65 and 35 per cent stake each in FBN Life respectively, while New India Assurance Company, India, has 51 per cent stake in Prestige Assurance.
The Chief Executive Officer, Sanlam, Mr. Heinie Werth, said a major point of attraction for investing in the Nigerian market was the visibility of developmental projects and prospects for growth in the economy.
With the vast experience and exposure that Sanlam has in doing insurance business internationally, he said it was bringing in lots of experience to assist the local industry to develop faster.
The company, he added, was also adding value because it believed in working through the local people thereby creating employment opportunities in the society.
Sanlam, Werth noted, had huge spectrum of products, which it planned to introduce into the country through FBN life.
The Managing Director, Niger Insurance Plc, Mr. Kola Adedeji, said some multinationals were coming into the country to explore the potential in its huge population.
“They believe the insurance industry is still very weak. The insurance industry has been around for a very long time, but we are still evolving,” he said.
According to him, the coming of the multinationals will bring with it keen competition in the market and engender growth.
“They are coming in with better technology, capital, ideas, expertise and products. Those of us that have been in insurance, we need to really brace up. These people are coming in stronger terms,” Adedeji said.