The National Insurance Commission (NAICOM) anticipates several M&A transactions in Nigeria in 2020. No lesser than six insurance companies have notified the regulator of their intention to merge. The involved insurers belong to 44 companies whose recapitalization plans have been approved by the NAICOM.
This tendency to merge followed the capitalization requirements imposed by the authorities on local companies which were prohibited from borrowing money to finance their capital increase. The last recapitalization operation which was carried out between 2003 and 2007, resulted in the acquisition of several companies by foreign investors.
The Nigerian market is made up of 57 companies among which 14 life insurers, 28 non-life insurers, 13 composite insurers and two reinsurers.