In view of its expansion plans across Sub-Saharan Africa, Anglo-South African financial conglomerate, Old Mutual Plc, says its sees immense growth opportunity available in Nigeria.
According to Old Mutual CEO Julian Roberts, “We think there is huge growth in Nigeria, and our strategy is to go to countries where we can build meaningful business.”
Roberts added that Nigeria’s population of 167 million people and nascent insurance business means that the market is poised for growth. Old Mutual particularly plans to focus more cashing in on the strong economic growth poised in the East and West Africa region.
Nigeria’s GDP is expected to recover moderately to above 7.0 percent in 2013 from 6.6 percent in 2012.
Old Mutual which is the third largest insurer in Britain with operations in about 30 countries; had in November, 2012 bought Nigerian property and casualty insurance unit of pan-African lender, Ecobank for about $20 million. For about two years now, Old Mutual had also expressed interest in acquiring Spring Life Insurance Limited, which had been penciled as insolvent by the market regulator.
At the moment, Africa’s largest economy, South Africa serves as Old Mutual’s main source of revenue with 86 percent while UK, USA and Europe provide 12 percent, 2 percent and 1 percent respectively.