AXA Mansard Insurance to divest 100% Equity in Pension to Verod Group
AXA Mansard Insurance Plc has divested from its subsidiary, AXA Mansard Pensions Limited. The insurer has sold its stake in the company to Eustacia Limited (a member of the Verod Group).
In a notification to the Nigerian Stock Exchange (NSE) recently, AXA Mansard explained that a sale and purchase agreement was entered with Eustacia Limited to divest the entire issued ordinary share capital of AXA Mansard Pensions comprising of 60 per cent shareholding held by AXA Mansard Insurance and 40 per cent shareholding held by the minority shareholder.
According to the company, the divestment has received letters of ‘No Objection’ from the National Insurance Commission (NAICOM), National Pension Commission (PENCOM), and the Federal Competition & Consumer Protection Commission (FCCPC).
Commenting on the divestment, Chief Executive Officer, AXA Mansard Insurance Plc, Mr. Kunle Ahmed, said: “This transaction marks a new step in AXA ́s broader strategy to focus on and grow our Life, Property & Casualty (P&C) and Health businesses across all its geographies. The AXA Group sees great potential in the Nigerian insurance market and believes AXA Mansard is ideally placed to capture these opportunities, thanks to its market leadership positions in Health Insurance, Property & Casualty and Life Insurance.
“We plan to capitalise on our successes to further build our capabilities and continue to deliver the best offers & services to our customers”.
Also speaking on the transaction, the Chief Executive Officer (CEO) of AXA Mansard Pensions Limited, Dapo Akisanya, said: “We are confident about Verod’s strong commitment to providing the company with the requisite support to actualise our promise to our clients and stakeholders.
“As a West African investor with deep local knowledge and presence, we look forward to harnessing Verod’s unique, and world-class, attributes towards setting new standards in the industry.
“Verod has the capacity, expertise, and network, to support the business to continue to expand and to provide innovative solutions for the benefit of our current and future clients”
In his comments, Partner at Verod, Eric Idiahi, said: “We strongly believe that this is the ideal time to enter the market and that AXA Mansard Pensions provides an excellent beachhead from which to establish a consolidated position and gain market share. The NAICOM continues to demonstrate a strong commitment to raising standards within the industry and driving pension penetration rates in the short to medium term.
Eric Idiahi added that, “We believe that sustaining AXA Mansard Pension’s industry-leading investment returns, excellent customer service, as well as, expanding distribution network and product offerings will facilitate the capture of the considerable growth potential within the Nigerian pensions industry, particularly following the opening of the transfer window.”