The boards of SA Insurance Plc and SA Life Assurance Limited have approved the merger of both companies to form a frontline composite insurance company.

A statement obtained from the company on Wednesday said this is was a deliberate and strategic decision to enable the new company to play a leading role in the nation’s insurance sector.

The spokesman for the two companies, Mr. Nelson Egboboh, stated that the boards’ corporate decision of combining the existing strengths of both companies was spurred by its desire to create a bigger and financially strong composite insurance company with stronger capacity to serve its clients and play a dominant role in the insurance industry.

He said that the corporate action was being taken with a focus on delivering superior returns to the shareholders, providing higher level of satisfactory service to its clients, and to save cost.

Egboboh explained that to give the merger plan the necessary regulatory backing, the managements of both firms had applied for and secured a no objection consent from the National Insurance Commission.

He noted that in line with market procedures and pursuant to rule 228 (ii) of the Investment and Securities Act 1999, the managements had also notified the Nigerian Stock Exchange of the development.

In the statement, he said that the companies were engaging the services of appropriate financial and merger experts to drive the transaction.

“It is our plan to complete the process before the end of the third quarter of this year,” he stated.

Egboboh stressed that the composite company that would emerge would continue to build on the success of the transaction in the months to come.

Punch