The Federal Government has decided to sell its remaining stake in Nigeria Reinsurance before the end of the year. The mode of exit will be through an Initial Public Offer (IPO) scheduled to take place in November this year. This is according to reports by Reuters.
Nigeria’s stock market was one of the best performing last year with an over 42% gain. The government has also floated its stakes in several enterprises such as the Nigerian Aviation Handling Company (NAHCO) in 2005.
Alex Okoh Director-General of the Bureau of Public Enterprises (BPE) while being interviewed by Reuters stated that the agency had a list of assets it plans to either sell or concession in a bid to raise N400 billion to fund the 2018 budget.
Nigeria Reinsurance Corporation was established under the Nigeria Reinsurance Corporation Act No. 49 of 1977. It commenced operations on January 1st, 1978 as Nigeria’s flag reinsurer, wholly owned by the Government of the Federal Republic of Nigeria.
In line with the privatization policy of the Federal Government, the Corporation’s 51% equity was acquired in December 2002, by Reinsurance Acquisition Group – the Management buy out vehicle, while the Government retained 49% interest. The former stake was later taken over by Barr.Jimoh Ibrahim through Global Fleet Oil and Gas.
The 2016 result which is the most current on the company’s website shows Gross Premium Written dropped from N700 million in 2015 to N625 million in 2016. Profit before tax surged from N526 million in 2015 to N923 million in 2017. Profit after tax also increased from N537 million in 2016 to N848 million in 2016.