Sovereign Trust Insurance Merges With Five Other Insurance Firms
September 7th, 2006 mishacko || mishacko@yahoo.co.uk
By Mishack Okpara
AS the deadline for achieving the new minimum capitalisation in the insurance industry draws near, many operators have been making steady progress to beat the deadline. In pursuant of this, Sovereign Trust Insurance Plc has announced its plan to merge with five other insurance companies. According to the MD/CEO of Sovereign Trust, Mr. Olusegun Ajayi, the confirmed merging companies in the group’s consolidation project are Sovereign Trust Insurance Plc, Coral International Insurance Company Ltd., Confidence Insurance Plc, Global Commerce and General Insurance Company Ltd., Prime Trust Insurance Company Ltd. and Lombard Insurance Company Ltd.
All the companies in the group are said to have executed the necessary Memorandum of Understanding (MOU). The other fine details of the merger process are currently being worked out but the whole exercise is expected to be concluded by October 2006. Also the merging companies are said to share similar corporate philosophy, orientation and values and that the companies had resolved to enter into this strategic partnership in order to build a bigger and financially strong organization.
The combined shareholder’s fund of the group is expected to exceed the N3 billion capital base required for non-life insurance business. The merging partners are currently raising additional capital for the group and Sovereign Trust is also raising a total sum of N800 million through private placement after which it will list all its shares on the Nigerian Stock Exchange before embarking on an Initial Public Offer (IPO).
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