The future increase in the minimum share capital required to discharge the activity of insurer has triggered rapprochement between the different players and investors on the market. The new method of calculation, based on venture capital, guarantees in a more rigorous fashion the adequacy of insurers’ capital with their obligations. This is going to compel insurers to increase their capital.
More than 12 insurers out of the 58 operating in the country, have started their talks with investors or other insurers to merge or to make acquisitions.
Standard Life Insurance and Standard Alliance Insurance have already announced their merger. Liberty Holding has announced its acquisition of 75% of UNIC Insurance for the amount of 12 million USD. Royal Exchange, on its part, has resorted to financial markets to raise funds between 2 and 3 billion NGN (6.4 and 9.6 million USD).
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