️ Insurance Shake-Up: Mergers, Takeovers Gain Momentum Ahead of Industry Reform Bill
Here’s a detailed breakdown of what’s unfolding in Nigeria’s insurance landscape:
Major Industry Moves Amid Reform Anticipation
The Nigerian insurance industry is experiencing a wave of mergers, acquisitions, and corporate restructuring as it anticipates the long-awaited presidential assent to the Insurance Industry Reform Bill. These developments signal a strategic repositioning by players aiming to scale, stabilize, and stay competitive in what’s shaping up to be a redefined regulatory environment.
Key Corporate Actions:
1. Sanlam + Allianz Merger:
• SanlamAllianz Life and General Insurance received new operating licenses from NAICOM on July 2, 2025.
• The Commissioner for Insurance, Olusegun Omosehin, urged the merged entity to uphold corporate governance and strengthen claims management.
• This move reflects the pan-African ambitions of the new entity, with roots dating back to their joint venture launch in 2023, now operating in 27 African countries.
2. Standard Alliance Transforms into Fortis Global Insurance:
• Endura Investment Global Ltd acquired a 24% controlling stake and reconstituted the board.
• The company is now rebranded as Fortis Global Insurance, signaling a fresh start with plans to split into three standalone entities—life, general, and investment—under a holding company structure.
3. Old Mutual Sold to emPLE Group:
• In 2024, Old Mutual Nigeria sold 100% of its life and general insurance businesses to emPLE Group.
• This acquisition aims to strengthen service delivery and increase insurance penetration in Africa.
What’s Inside the Insurance Industry Reform Bill?
Sponsored by Senator Tokunbo Abiru, this comprehensive bill aims to overhaul Nigeria’s insurance legislation by:
• Repealing outdated acts like the Insurance Act (2004), Marine Insurance Act, and others.
• Introducing risk-based capital (RBC) standards tailored to individual company risk exposure (market, credit, operational, etc.).
• New minimum capital requirements:
• Non-life insurance: From ₦10bn to ₦25bn or RBC
• Life insurance: From ₦8bn to ₦15bn or RBC
• Reinsurance: From ₦20bn to ₦45bn or RBC
It also mandates:
• Separation of annuity from individual life businesses
• Maximum commission caps (e.g., 12.5% for motor, 10% for group life)
• Introduction of “no claims” discounts and incentives
• Strengthened compulsory insurance mandates, including:
• Group life for all employees
• Public buildings, construction projects, and federal assets
• Third-party motor insurance
• Credit life insurance for loans above ₦10 million
• Insurance for fuel stations against explosion/fire
• Establishment of a Road Safety and Accident Victims Compensation Fund
Implications and Expert Opinions:
• Edwin Igbiti, former CIIN President, stressed the need for recapitalisation, noting that big capital = bigger capacity. He sees M&As as inevitable.
• Deloitte emphasized that this reform will:
• Improve risk retention
• Enhance industry credibility
• Attract more investments
• Facilitate economic growth via deeper financial intermediation
• Agusto & Co. projects a ₦600bn capital injection once the bill is signed. They believe this will:
• Trigger a rush to recapitalize in FY 2025
• Lead to more technologically driven innovation
• Encourage greater local underwriting
What This Means for Investors & the Market:
As the bill awaits the President’s signature, companies aren’t waiting—they’re already restructuring, raising capital, and expanding, knowing that only the strong and agile will thrive under the new regime. The ripple effect on the capital market, insurance penetration, and job creation could be substantial.
Bottom Line:
This is a pivotal moment for Nigeria’s insurance industry. The coming weeks and months could determine who scales, who merges, and who exits.
For stakeholders—investors, employees, and policyholders—this reform could unlock a more secure, competitive, and innovative sector with broader economic impact.
Here’s a detailed breakdown of what’s unfolding in Nigeria’s insurance landscape:
Major Industry Moves Amid Reform Anticipation
The Nigerian insurance industry is experiencing a wave of mergers, acquisitions, and corporate restructuring as it anticipates the long-awaited presidential assent to the Insurance Industry Reform Bill. These developments signal a strategic repositioning by players aiming to scale, stabilize, and stay competitive in what’s shaping up to be a redefined regulatory environment.
Key Corporate Actions:
1. Sanlam + Allianz Merger:
• SanlamAllianz Life and General Insurance received new operating licenses from NAICOM on July 2, 2025.
• The Commissioner for Insurance, Olusegun Omosehin, urged the merged entity to uphold corporate governance and strengthen claims management.
• This move reflects the pan-African ambitions of the new entity, with roots dating back to their joint venture launch in 2023, now operating in 27 African countries.
2. Standard Alliance Transforms into Fortis Global Insurance:
• Endura Investment Global Ltd acquired a 24% controlling stake and reconstituted the board.
• The company is now rebranded as Fortis Global Insurance, signaling a fresh start with plans to split into three standalone entities—life, general, and investment—under a holding company structure.
3. Old Mutual Sold to emPLE Group:
• In 2024, Old Mutual Nigeria sold 100% of its life and general insurance businesses to emPLE Group.
• This acquisition aims to strengthen service delivery and increase insurance penetration in Africa.
What’s Inside the Insurance Industry Reform Bill?
Sponsored by Senator Tokunbo Abiru, this comprehensive bill aims to overhaul Nigeria’s insurance legislation by:
• Repealing outdated acts like the Insurance Act (2004), Marine Insurance Act, and others.
• Introducing risk-based capital (RBC) standards tailored to individual company risk exposure (market, credit, operational, etc.).
• New minimum capital requirements:
• Non-life insurance: From ₦10bn to ₦25bn or RBC
• Life insurance: From ₦8bn to ₦15bn or RBC
• Reinsurance: From ₦20bn to ₦45bn or RBC
It also mandates:
• Separation of annuity from individual life businesses
• Maximum commission caps (e.g., 12.5% for motor, 10% for group life)
• Introduction of “no claims” discounts and incentives
• Strengthened compulsory insurance mandates, including:
• Group life for all employees
• Public buildings, construction projects, and federal assets
• Third-party motor insurance
• Credit life insurance for loans above ₦10 million
• Insurance for fuel stations against explosion/fire
• Establishment of a Road Safety and Accident Victims Compensation Fund
Implications and Expert Opinions:
• Edwin Igbiti, former CIIN President, stressed the need for recapitalisation, noting that big capital = bigger capacity. He sees M&As as inevitable.
• Deloitte emphasized that this reform will:
• Improve risk retention
• Enhance industry credibility
• Attract more investments
• Facilitate economic growth via deeper financial intermediation
• Agusto & Co. projects a ₦600bn capital injection once the bill is signed. They believe this will:
• Trigger a rush to recapitalize in FY 2025
• Lead to more technologically driven innovation
• Encourage greater local underwriting
What This Means for Investors & the Market:
As the bill awaits the President’s signature, companies aren’t waiting—they’re already restructuring, raising capital, and expanding, knowing that only the strong and agile will thrive under the new regime. The ripple effect on the capital market, insurance penetration, and job creation could be substantial.
Bottom Line:
This is a pivotal moment for Nigeria’s insurance industry. The coming weeks and months could determine who scales, who merges, and who exits.
For stakeholders—investors, employees, and policyholders—this reform could unlock a more secure, competitive, and innovative sector with broader economic impact.