Continental Re plans acquisition of African rivals

Continental Reinsurance Plc plans to acquire rivals across Africa over the next three years as the Nigerian firm seeks to expand on the continent, said chief executive officer, Femi Oyetunji.

In each of the company’s five African regions, “one subsidiary has been given the responsibility to look for acquisitions,” Oyetunji said in an April 28 interview at the company’s headquarters in Lagos. “A few names have come up in each region and we’re assessing them strategically at the board level.”

Premium income for the insurance and reinsurance industry is improving in Nigeria, Africa’s largest economy and oil producer, as regulators enforce rules requiring companies with at least five workers to provide life coverage. The National Insurance Commission is also making property insurance mandatory in the nation of 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.

The fundraising, initially planned for last year, was delayed after Emerging Capital Partners LLC, a Washington-based buyout firm, announced plans to sell its majority stake. The investor “is very close to concluding the exercise and will announce the preferred bidder for its 54 percent stake soon,” Oyetunji said.

The March presidential election has bolstered investor confidence in Nigeria, he said.