National Insurance Commission says the reenactment of sealed and ongoing mergers in the pension industry being a happenstance in insurance industry cannot be ruled out.
The Commissioner for Insurance, Olusegun Omosehin, gave the hint at the recent Media Session in Lagos where he said mergers can happen at any time whether or not recapitalisation was required.
Omosehin said what is taken place in the pension industry could still happen in the insurance space. He noted with delight that merger enquiries have picked up in the pension sector and a lot of that recently. The sector he noted, had witnessed major pension fund administrators PFAs merging and forming a more formidable one and, its still ongoing.
“Those are the things we are likely to see in the insurance industry when companies begin to see the strategic benefits,” He stated that raising capital in itself makes that happen because investors become more agitated and begin to look at their business strategy, “I am sure I want to go it alone. Why don’t we combine strength and be able to build more formidable entity.”
“What you see is the first phase, there are a lot of involuntary action or voluntary action that will happen among operators in terms of their business strategy to yield value for their shareholders and this would be a natural process,” he said.
