(by Ugonna MADUAGUFOR)
Universal Insurance plc in recent times one of the most desirable stocks in the Nigerian Stock Exchange in terms of traded volume has acquired full title of ownership for all the assets, liabilities, and management of yet another insurance company, this time African Alliance Assurance. Universal Insurance which used to be strictly a non-life Insurance business operator has with this acquisition diversified its operations into life insurance business through a 100 percent ownership and control of African Alliance being a life insurance underwriter before now.
Dr Oladipo Baily a one time commissioner of insurance, commented that mergers and acquisition is necessary to enable Nigerian insurance industry compete effectively in the global insurance market. The current commissioner of insurance Mr. Fola Daniel on his own part mentioned that the National Insurance commission (NAICOM) would continue to encourage more mergers and acquisition to help companies build up bigger financial and human capital.
Universal Insurance Company being a N5 billion capital base business entity is an insurance group comprising of four different “pre- insurance consolidation era” companies namely: United Trust Assurance Company limited, Oriental Insurance Company limited, and African Safety Insurance limited. The new Universal plc intends to add value to the traditional life insurance operations by adding new products that allow there insured clients benefit from the life policy even while they are still alive.