SA Insurance to merge with SA Life | Independent Newspapers Limited
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Business, Insurance

SA Insurance to merge with SA Life

Posted: Apr 23, 2015 at 2:55 am   /   by   /   comments (0)

The boards of both SA Insurance Plc and SA Life Assurance Limited have approved the merger of both companies to become a single insurance company offering all classes of insurance business.

The organisations’ spokesman, Nelson Egboboh disclosed this to Daily Independent on Monday in Lagos.

He explained that the boards’ corporate decision of combining the existing strengths of both companies was spurred by their desire to “create a bigger and financially strong composite insurance company with stronger capacity to serve its various clients and play a more dominant role in the insurance sector.”

In order to give the merger plan the necessary regulatory backing, he said “the management has applied for and secured “no objection consent” from the National Insurance Commission, NAICOM.”

Besides, he informed that in line with market procedures and pursuant to Rule 228 (ii) of the Investment and Securities Act 1999, the management has also notified the Nigerian Stock Exchange of the development.

He stated that the companies are engaging the services of appropriate financial and merger experts to drive the transactions, noting that “it is our plan to complete the process before the end of the third quarter of this year.”

He explained that SA Insurance Plc which became quoted on the Nigerian Stock Exchange in 2003 currently has a shareholders’ funds of N4.7 billion and asset base of N8.8 billion while its affiliate company, SA Life Assurance Limited has a Shareholders’ Fund of N2.1 billion and a total asset base of N6.9 billion.