Old Mutual is reportedly planning to make at least two acquisitions within the next five years to strengthen its presence in the West African region.
The region is said to have a low insurance penetration.
Bloomberg reported citing the head of Old Mutual’s West African operations that a company’s market size serves as an important factor for customers selecting an insurance firm in the region.
Old Mutual West Africa CEO Samuel Ogbu told the news outlet in a telephone interview: “This is a market where if you are outside the leading companies, then you really struggle to get attention — not only from the corporate sector but also from the retail sector.”.
“We have held talks with several parties and we are likely to make at least two acquisitions,” Ogbu added.
Old Mutual, which ranks 15th in terms of premium income in Nigeria, is targeting companies in the insurance and complimentary business for acquisitions in the country.
The insurer seeks to augment its position in Ghana as well, where it ranks as the fifth largest.
The acquisitions are expected to boost Old Mutual’s underwriting business in these two West African countries.
“Our aim is to strengthen our position in Nigeria and Ghana to really grow and use those as a basis to penetrate the rest of West Africa over time,” Ogbu noted.
Nigeria, which is Africa’s largest economy, has one of the lowest insurance penetrations in the world.