Following a deliberate and strategic decision to play a leading role in the nation’s insurance sector, 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.
According to the organisations’ spokesman, Mr. Nelson Egboboh who disclosed this to our Correspondent in Lagos, the Boards’ corporate decision of combining the existing strengths of both companies was spurred by their desire to “create a bigger and financially strong composite insurance company with stronger capacity to serve its various clients and play a more dominant role in the insurance sector.”
He disclosed that the corporate action was further being taken with a focus on “delivering superior returns to the shareholders, provide much higher level of satisfactory service to our clients and to save cost of operations.”
He explained that to give the merger plan the necessary regulatory backing, “the management has applied for and secured a “no objection consent” from the National Insurance Commission, NAICOM,” noting further that in line with market procedures and pursuant to Rule 228 (ii) of the Investment and Securities Act 1999, the Management has also notified the Nigerian Stock Exchange of the development.
He noted that the companies are engaging the services of appropriate financial and merger experts to drive the transactions, stating that “it is our plan to complete the process before the end of the third quarter of this year.”
Egboboh assured that “the composite company to emerge will continue to build on the success of the transaction in the months to come, providing more innovative products and delivering on its promises to clients,” noting that “with the company’s formidable management team as well as its professional and result-oriented workforce, the company was sure of achieving its set merger goals.”
He explained that SA Insurance Plc which became quoted on the Nigerian Stock Exchange in 2003 currently has a shareholders’ funds of N4.7bn and asset base of N8.8bn while its affiliate company, SA Life Assurance Limited has a Shareholders’ Fund of N2.1bn and a total asset base of N6.9billion.
According to him, “with a combined asset base of N15.7bn after merger and a joint gross production of N8.41bn achieved as at 31st December, 2013, the future could only be better for the organisation and its clients as the company would be in a much superior position of strength to play dominantly to attract a higher percentage market-share and to further respond to claims’ issues much faster than we have been doing before now.”