The National Insurance Commission (NAICOM) has sanctioned the acquisition of Oceanic Life Insurance Limited, a former subsidiary of the defunct Oceanic Insurance Company Limited by a leading South African insurer, Old Mutual.
The new entity is to be known as Old Mutual Nigeria Life Assurance Company Limited (OMNiLAC).
Under the new arrangement, the company is owned 70 per cent by Old Mutual Nigeria Services Company Limited (OMNSC) while Cressida Nigeria Limited has 29 per cent stake in the company. The remaining one per cent is owned by private individuals.
The insurance regulator disclosed its approval of the business combination in a statement in Abuja yesterday, signifying that the company would return to the market as soon as it is convenient for the new owners.
Old Mutual Plc, a South Africa-based Insurance firm, has finalised its investment in Oceanic “Life Insurance Limited by acquiring the majority shareholding of the company.
The company has been granted a certificate of registration to operate as an insurer in Nigeria by NAICOM under the new name Old Mutual Nigeria Life Assurance Company Limited (OMNiLAC),” the commission stated.
Oceanic Life Insurance Limited was before now, owned by Ecobank having acquired controlling stake in Oceanic Bank.
Last year, Old Mutual made known its intention to acquire the insurance company from Ecobank Transnational Incorporated (ETI) which acquired Oceanic Life, a sub-set of the Oceanic Insurance Group.
Speaking on the transaction, the Managing Director of Old Mutual Africa, Johannes Gawaxab, said it was in furtherance with the expansion of its presence in sub-Saharan Africa.
He also stated that with the capability that the business had collectively established over time, Old Mutual is well-positioned to leverage this competitive advantage, particularly in the mass market segments.
“Old Mutual has been doing business in Africa for over 165 years. With excellent long-term growth prospects across the continent, we aim to provide a sustainable growth platform for Old Mutual by expanding selectively in West Africa and East Africa, utilising our business-in-a-box model. The transaction that we’ve set in motion with this offer exemplifies this and we look forward to being fully operational in Nigeria in the near future,” said Mupita, when making the announcement.