SAHAM Finances acquires 40% stake in Unitrust Insurance

SAHAM Finances S. A., the insurance arm of the SAHAM Group, has acquired a 40 percent equity stake in Unitrust Insurance Company Limited.
Marking a major entry into the Nigerian insurance market, SAHAM through the purchase by its wholly owned Mauritian operating company (Colina Holdings Ltd) has recently signed the deal.
With total written premiums of N3.3 billion in 2013, Unitrust Insurance Company Limited 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. However, thanks to the reforms undertaken by the Nigerian insurance regulatory body, National Insurance Commission (NAICOM), the market is expected to triple by 2017, and be worth more than N 6 billion.
The insurance sector in Nigeria would then be worth 3 percent of GDP in comparison to the current 1 percent.
As part of the group’s continued expansion plan, this investment will allow SAHAM Finances to consolidate its West African development, importantly in the continent’s biggest economy.
The long-term shareholders of Unitrust Insurance 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.
SAHAM Finances’ managing director, Raymond Farhat, said: “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.”