NIGERIA – Verod Capital Management has received regulatory approvals to acquire 100 per cent of the shareholding of Metropolitan Life Insurance Nigeria from South African-based Momentum Metropolitan Holdings.
The transaction which will be executed for an undisclosed amount will see Momentum Metropolitan exit the Nigerian market, in line with its articulated Reset and Grow strategy.
“We would like to take this opportunity to sincerely thank various stakeholders that have fully supported us during our presence in the Nigerian market,” said Kudakwashe Mudzengi, acting CEO of Momentum Metropolitan Africa.
He further added, “We are confident that Verod Capital will continue to provide our stakeholders with the support and confidence needed in a shareholder,” added Mudzengi.
The move comes at a time when the National Insurance Commission (NAICOM), which is the regulating authority for the industry, is implementing sector-wide reforms to increase sector performance and penetration.
NAICOM recently announced its decision to increase the minimum capital requirements for all insurance firms operating in the country.
This, in addition to various other initiatives being pursued by both regulators and industry participants, is expected to result in improved insurance penetration and performance in the sector.
“Low levels of insurance penetration, even compared to other African economies, point to untapped opportunities within the sector,” said Eric Idiahi, Partner at Verod.
Idiahi pointed out that, “NAICOM, has made concerted efforts towards creating an enabling environment.”
“we believe that these actions, in addition to product innovation supported by increased public awareness and investments in technology-driven distribution channels, are the triggers that this sector needs to close the insurance penetration gap,” added Idiahi.
Metropolitan Life Nigeria is a life insurance company offering group life and credit life products to clients across the public and private spheres.
Momentum Metropolitan has been a major shareholder in Metropolitan Life Nigeria for the past 12 years and has steered the Company through various phases of its growth trajectory.
Verod has plans for expansion of the insurance company and with their added expertise, they anticipate that Metropolitan will increase its market share in the insurance sector.