Nairametrics| The wave of mergers and acquisitions seem to be blowing in the insurance industry again. Liberty holdings, one of South Africa’s biggest financial service firms, has taken a stake in a Nigerian insurance firm. While Liberty has not mentioned the insurance firm, investigations by Nairametrics has suggest the firm could be Unic insurance.
Unic Insurance was established by prominent business man and one time head of the Interim National Government, Chief Ernest Shonekan in 1965. The company, started as a composite insurance firm, but has focused on health insurance since the 2007 insurance consolidation exercise. The deal, worth $12 million dollars, will see Liberty take a 75% stake in the firm. Audited results for the company in 2014, show the company having a loss after tax of 567 million naira.
AXA insurance in 2014, acquired a 100% stake in Assur holdings which had a majority stake in Mansard insurance. The deal was valued at $246 million dollars cash. The insurance industry is also due for another capital verification exercise this year according to the National Insurance Comission (NAICOM). The industry is made of several poorly capitalized firms, with several having negative retained earnings.
Unic is valued at about $1.9 billion as its share price remains stuck at 50kobo per share for years.