We are better positioned to compete in the market- Equity Assurance boss

Foreign Investors have continued to take prime position in the Nigerian insurance market particularly to take advantage of the Country’s huge population. Ekpe Ukapbio, managing director, Equity Assurance plc in this interview with Modestus Anaesoronye shares his thought on the new investment by SUNU Insurance Group into the Company, value for shareholders and future of the Nigerian insurance market. Excerpts:

Equity Assurance plc recently concluded a strategic investment with SUNU, a Franco-phone African Insurance Group; could you give us details of the investment?

Yes we have just concluded a strategic investment with SUNU Assurance Group and we are grateful to God. This arrangement puts SUNU Assurance as the majority Shareholder of Equity Assurance plc with 60 percent ownership while the existing shareholders have collapsed their ownership to 40 percent. The paid up capital of Equity Assurance is now =N=7b clearly beyond the required =N=3b for a non-life general business insurance company in Nigeria.

What does the new investment mean for Equity Assurance and how does it position the Company for market competition?

The new investment is in line with the vision of Equity Assurance i.e, to be a leading Africa Insurance Group. SUNU Assurance is present in 12 Franco-phone African countries while Equity Assurance is present in 3 Anglo-phone countries. This arrangement brings about market presence in 15 African countries and Equity Assurance now belongs to a major insurance conglomerate in the continent. We hope to leverage on this to maximise all the possible economies of scale including market competition for the overall benefit of our stakeholders.

What is the new face of Equity Assurance in terms of board and management structure? Are we expecting a kind of rebranding soon?

By the Grace of God, the existing management is intact. However, we have addition to the Board to represent the SUNU’s interest. Also the Brand remains the same.

The face of the Nigerian insurance market appears to be changing with continued entrants of equity investors, what does this mean for the market?

It is a welcome development because over time it will make the market stronger in all ramifications-financially, capacity (technical/human) and global relevance.

Are we getting to a situation where we may have majority of the local firms taken over by equity investors?

For as long as Insurance business is capital driven then influx of equity investors will continue. However, I hope that local investors will try as much as possible not to allow a complete take-over by the foreign investors.

We are already in 2016, what does the future of insurance in Nigeria look like this year?

There is a bright prospect for insurance business in 2016, in spite of the fall in price of oil. The Federal budget indicates diversification to other areas of revenue generating ventures and this will improve economic activities in the country which will in turn bring about demand for insurance services. Also the ongoing war against corruption in our society generally will change the way businesses are transacted and there will be accountability and proper implementation of policies and execution of projects. These will improve the insurance market.

As an operator, how do you plan to ride with the tide of declining oil prices, dwindling revenue, illiquidity in the economy to sustain growth this year?

There is always light at the end of the dark tunnel. We plan to be innovative; in service delivery, in products development, in cost management, in customers experience and ensuring a proper balance in all of our dealings.

Back to Equity Assurance, how did your company close the year 2015 in terms premium income and bottom line?

The Financials are being audited now so I cannot comment fully.

What assurance would you be giving to your shareholders as you begin a new phase in the life of the Company?

We shall preserve and multiply value of our Shareholders and ultimately maintain a consistent dividend payment policy.

Where do we see Equity Assurance in the next five years?

Equity Assurance plc will be among the top five players in the next five years.