…New Core Investor Targets Top Five Position In Insurance Industry By 2015
Alternative Capital Partners (“ACAP”) in consortium with Swede Control Intertek Limited have acquired one of Nigeria’s first generation insurance companies, Law Union and Rock Insurance Plc.
The acquisition of Law Union & Rock Insurance is the first insurance company acquisition by a local fund manager from a divesting commercial bank post-Sanusi Lamido Sanusi’s Central Bank of Nigeria’s banking reform programme.
A reliable source in the National Insurance Commission (NAICOM), the insurance industry regulator, confirmed to the Economic Confidential that the consortium has acquired 60 per cent controlling shares of Law Union & Rock Insurance Plc.
The source revealed that ACAP and Swede Control have made a substantial payment for the Skye Bank interest in the insurance company.
“You will recall that ACAP and Swede Control Intertek Limited had emerged the preferred Bidder for the Skye Bank’s interest in Law Union & Rock Insurance Plc.
“The consortium has made substantial payments to the divesting commercial Bank. The new core investor will now control 60 per cent of Law Union & Rock Insurance Plc,” said the senior official of NAICOM.
The Economic Confidential further gathered that a rich and strong management team with demonstrable track record had been put together by the new core investor to work with external consultants to unlock value in the company.
According to the insurance broker, the new core investor has set a target of being among the top five insurance companies by the end of 2015.
He added that the new core investor is coming with strong understanding of the sector and transformation agenda for the insurance company.
Law Union and Rock Insurance Company currently rank amongst the top 10 in the insurance industry in Nigeria in terms of gross insurance premium, making it a major force to reckon with in this financial sub sector of the nation’s economy.
ACAP, a Fund/Portfolio Manager & Corporate Investment Adviser registered by the Securities and Exchange Commission, is an independent alternative wealth management company with additional focus on private equity, financial & investment advisory, principal investments and sales & trading.
The wealth management company had in 2011 acquired the Fund management role of Oceanic Vintage Fund from Oceanic Bank Plc and rebranded the fund to ACAP CanaryGrowth Fund with new investment strategy directed towards creating sustainable value for investors.
Swede Control Intertek Limited is a wholly owned Nigerian company with a strong foreign technical partner in the United Kingdom – Intertek Group Plc. Swede Control Intertek Limited has complimented and worked closely with Intertek Group Plc, United Kingdom on the Government Services in which Swede carried out Pre-shipment Inspection Programme for the Federal Government of Nigeria between 1984 and 2006.
Law Union & Rock Insurance commenced operations in Nigeria six decades ago (1951) as Chief Agency when the late Sir Mobolaji Bank-Anthony held the power of Attorney for Royal International Insurance Holding, a U.K leading Insurance Company [the first Nigerian to have such authority].
The company acquired Branch status in 1957 and continued to operate as a Branch of Royal International Insurance Holding, United Kingdom, transacting all major classes of Insurance businesses until June 1969 when it became incorporated locally in compliance with the Companies Act of 1968.
In 1976 with the promulgation of Indeginization Decree, the Federal Government of Nigeria decided to acquire shares in leading Financial Institutions in the country, the Company was one of those affected by the exercise. The Federal Government acquired 9,775 shares of N2 each, which was 39.1% of the Company’s Paid-up capital.
In 1989, the Federal Government in pursuit of its Privatization and Commercialization policy offered to the public its shares in the Company and this exercise led the company into being quoted on the floor of the Nigerian Stock Exchange on 9th July 1990.
Law Union & Rock Insurance Plc is now a fully indigenous public quoted Insurance Company having met the N3 billion Capital Base and recertified by NAICOM to continue to operate as a General Insurance Business Underwriter.