By Yakubu LAAH InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s reinsurer, Continental Reinsurance Plc says it plans an African acquisition in the next three (3) years as it seeks to expand to other parts of the continent , a Bloomberg report on Thursday quoted Femi Oyetunji, chief executive officer CEO of the company.
According to Bloomberg, in an April 28 interview, Oyetunji disclosed that in each of the company’s five (5) African regions, one (1) subsidiary has been given the responsibility to look for acquisitions. “A few names have come up in each region and we’re assessing them strategically at the board level,” he added.
The report says The National Insurance Commission (NAICOM) is improving premium income for the insurance and reinsurance industry in Nigeria as it enforces rules that require companies with at least five (5) workers to provide life cover.
In the same vein, NAICOM is also making property insurance mandatory in the Nigeria a country with more than 170 million people.
Continental Reinsurance plans to “raise significant capital” this year through equity sales to enable it to “take advantage of opportunities that abound in Nigeria and Africa,” Oyetunji said.
He affirmed that the fundraising was initially planned for last year and delayed so that Continental could put in place a new investor to replace Emerging Capital Partners LLC.
Oyetunji further affirmed that Emerging Capital, a Washington-based buyout firm, announced plans to sell its majority stake in Continental Reinsurance last year. “The investor is very close to concluding the exercise and will announce the preferred bidder for its 54 percent stake soon,” he added.
The CEO of Continental Re noted that the March presidential election has bolstered investor confidence in Nigeria. “With the peaceful conclusion of elections, business optimism has grown and people are going to be investing,” he said.
On April 22, the reinsurer announced it has a registered a subsidiary company, Continental Property and Engineering Risk Services Proprietary Limited in South Africa.
It said the new company for the time being is a wholly owned subsidiary of Continental Reinsurance Plc, it said in a notice to the Nigerian Stock Exchange (NSE).
According to Continental Re, the company will provide risk services and underwriting support for the following lines of property and engineering business: Commercial fire assets, all risks material damage and loss of profits; Contractor’s all risks; Erection all risks; Contractor’s plant and machinery.
Other areas it will cover include Civil engineering completed risks; Machinery; Electronic equipment; Deterioration of stock; Machinery loss of profits; Principal’s advanced project; Comprehensive project; and Comprehensive machinery.
