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Chuks Udo Okonta
Law Union and Rock Insurance Plc has projected about 40 per cent trade growth in 2021 going by the wealth of business acquisition of its new owner, Verod Capital Management.
The underwriter which has remained excited since the coming of its new owner in October, said Verod has been injecting quite a number of initiatives as their human capital, rebranding, product innovation and technology have all improved.
Verod, an Anglophone company has various interest in other insurance companies, Pension Fund Administrator (PFA), Emzor Pharmaceutical Company, technological companies, CSCS Plc, farms, among others.
Law Union, a General Business company has indicated that this is the best deal ever for the company within the insurance sector in terms of recapitalisation.
The Managing Director of Law Union, Mayowa Adeduro in an interview with journalists said the company has gone far on their recapitalization plans.
He disclosed that they are short of inviting the National Insurance Commission (NAICOM) to come and certify them okay, based on the commission’s planned verification exercise scheduled from December 31, 2020.
He stated that the commission gave a mandatory deadline for the completion of the first phase of 50 percent and 60 percent of the minimum paid-up share capital for insurance and reinsurance companies, which they have met.
“When our regulator, the National Insurance Commission (NAICOM) announced the recapitalization exercise, our board and management took it very seriously. We launched out very early looking for two options, merger and acquisition or a buyout. The merger and acquisition did not work out, but the buyout worked out. We were able to get Verod Capital who invested in Law Union and Rock and buy out the previous ownership of the company.
“So, as we are speaking, Verod Capital owns Law union and rock 100 percent through schemes of arrangement which were well publicized. Since their coming in October this year, they have been injecting quite a number of initiatives for us particularly human capital, rebranding, product innovation and technology. We are very glad. They have also been part of business acquisition too in terms of business development. They have been up and doing. As we speak, we are at the threshold of N11 billion naira and we are short of inviting NAICOM to come and do our verification”, he added.
He stressed that by next year, Law union will be in the threshold of 20 billion in terms of capital base while the asset base will be far in essence of 30 billion based on the projection.
He revealed that the entire structure of Tangerine Life and ARM Life which were also acquired by Verod will also serve Law Union positively, as the entire group would be able to work together seamlessly.
NAICOM increased the minimum paid up share capital for insurance and reinsurance companies of Life Insurance from N2 billion to N8 billion, General N3 billion to N10 billion, Composite N5 billion to N18 billion and Reinsurance N10 billion to N20 billion.