National Daily

African Alliance now Universal Insurance’s

History was made in the Nigerian insurance sector recently when a non-life firm, Universal Insurance Company, acquired the total equity of African Alliance Insurance.

Former Commissioner for Insurance, Mr Oladipo Bailey, in a statement on the occasion commended Universal Insurance on the unique feat, predicting that the insurance sector would continue to witness more strategic alliances as it moves to take advantage of emerging opportunities in the sector. “The move by Universal Insurance is quite commendable and in the right direction. I am looking forward to a day when two big insurance companies in Nigeria will merge to form a mega big company as we seen repeatedly in the UK, US, and other European countries”, Bailey said. He also suggested that mergers and acquisition should be embraced by operators in the insurance industry to enable the local market compete effectively in global insurance market.

Also speaking in the same vein, Commissioner for Insurance, Mr Fola Daniel, said mergers and acquisitions were desirable for the sector. “National Insurance Commission (NAICOM)”, he said, “would encourage more mergers and acquisitions to help companies build robust capital and robust human capital”.
Industry operators say the development will enhance capacity, innovativeness, profitability and excellent service in life insurance operations in Nigeria.

Universal Insurance Group Managing Director, Mr Cyril Ajagu, stated that Universal's investment in life insurance company was informed by its desire to establish standards in both non-life and life assurance transactions .According to him, “Life insurance is not only about taking out policies that can only be beneficial upon the death of a client. There is need for more scientific life policies that will guarantee uninterrupted education, home, ownership, retirement benefits and effective financial advisory services. This is what we intend to do as we reposition African Alliance for competitive edge locally, regionally and globally”.

Despite the noted lull in life insurance patronage which could be traced to the dearth of products that give satisfaction, Ajagu promised that Universal would deploy the strategic alliances forged with its local and foreign partners to ensure that global trends on life insurance are replicated in Nigerian insurance market. “We are living in a global village and life insurance is a major driver of economic development in developed world. We can enjoy fast-paced development in Nigeria with the support of long-term funds generated by life insurance transactions. Every Nigerian should be encouraged to take up various life insurance policies, all people need is an assurance that they are dealing with the right insurance company and this is the void Universal wants to fill”, he said.
By this acquisition of African Alliance, Universal Insurance now owns a full life insurance subsidiary.