American International Insurance Company, AIICO PLC said it is currently in a nonbinding acquisition talk with a foreign investor.
AIICO has not given further details on the name and scope of the investment talks with the foreign investor.
The company said in a brief statement that:
“In furtherance of an approval and authorization to that effect granted by its shareholders at the 46th Annual General Meeting held on 5th May 2016 at Federal Palace Hotel, Lagos, AIICO Insurance Plc (AIICO) has opened discussions with an Investor on a Non-Binding basis for Investment in the Company (AIICO Insurance Plc)”.
“This Notice appears for information purposes only”, the company said.
However, the Nigeria’s insurance sector has seen more investment from foreign investors in the last four years.
In 2014, AXA, the world’s third-largest insurance provider acquired 77% stake in Mansard, a subsidiary of Guaranty Trust Bank. Last year, Swiss Re was also reported to have bought 25% stake in Leadway Assurance PLC.
Confirming the Swiss Re deal, Leadway’s Managing Director Mr Oye Hassan-Odukale said “Swiss Re was selected as an investor because of the existing and well-established relationship between the two organisations. This comes in addition to Swiss Re’s long-standing commitment to the insurance sector which combines financial strength, risk transfer expertise and its direct investments.”
He added that “The investment allows Swiss Re to deploy capital in-line with its strategy of accessing new risk pools in emerging markets and to support insurance development across the globe. The investment comes after the exit of the International Finance Corporation (IFC), a member of the World Bank, which was the second largest shareholder of Leadway Assurance.
“The relationship between Swiss Re and Leadway started nearly 40 years ago when the then domestic insurer was in the process of ramping up its direct and personal line insurance operations into commercial and industrial line insurance operations to compete in a market which was dominated by much older foreign linked insurers.’’ he said.
Earlier this year, Discovery of South Africa announced that it has acquired a stake in a Nigerian insurance company.