By Yemisi Izuora-Lagos
SAHAM Finances S. A, the insurance arm of the SAHAM group, made its entrance into the Nigerian insurance industry. The company’s entry into the Nigeria as through its Mauritian operating company (Colina Holdings Limited), which bought 40 per cent equity stake Unitrust Insurance Company Limited.
As Part of the group’s continued expansion plan, SAHAM said this investment would allow it to consolidate its West African development, importantly in the continent’s biggest economy.
“The long-term shareholders of Unitrust Insurance Co. Ltd want the company to benefit from the pan-African expertise of SAHAM Finances, to become a reference point in the Nigerian insurance market by 2019.
With this acquisition, SAHAM Finances is happy to have found a worthy and well established local partner whose business is driven by high ethical standards and professionalism, the Managing Director of SAHAM Finances, Mr Raymond Farhat said.
According to him, Nigeria is a very big potential market.
It represents an important stage in our regional expansion strategy. Our desire is to combine the expertise of SAHAM Finances and those of our local partners to become a major stakeholder and bring the services offered up to international standards,” he added.
He disclosed that SAHAM Finances recorded a turnover of more than $1 billion in 2013.
“As the insurance arm of the SAHAM Group, SAHAM Finances is actively following its growth strategy in Africa and the Middle East. It is present in 22 countries through 49 subsidiaries, including 28 insurance and reinsurance companies through 650 branches throughout Africa and has a team of 2100 collaborators,” he said.
On the other hand, with total written premiums of N3.3 billion in 2013, Unitrust Insurance is one of the major players in the Nigerian non-life insurance.
The Nigerian market is characterised by the fragmentation of insurance services.
There are 32 non-life insurance companies, 17 life-insurance companies and 10 composite insurance companies.
With the reforms by the Nigerian insurance regulatory body, National Insurance Commission(NAICOM), the market is expected to triple by 2017 and be worth more than $6 billion.
The insurance sector in Nigeria would then be worth three per cent of GDP in comparison to the current one per cent.
Incorporated in 1981 but commenced insurance business in 1986 after obtaining a general insurance licence from NAICOM, Unitrust Insurance provides a range of products over in all areas of non-life insurance.
With an issued share capital of N3.3 billion and shareholders’ funds in excess of N6.831 billion in 2013, the company is present throughout the country.