Global reinsurer Swiss Re has acquired a 25% stake in Leadway Assurance, one of Nigeria’s leading insurers. This was revealed via an alert published on Africaglobalfunds website. Swiss Re’s move was driven by that of the International Finance Corporation to exit Leadway’s capital. The institution acquired in 2007 a stake in the Nigerian insurer for $14 million.

A few days ago, Nigeria Today said Swiss Re and Leadway teamed up to develop agriculture-focused insurance products. Also, in February 2015, Swiss Re’s CEO for Africa and Middle East, Franck O’Neill told journalists at the World Economic Forum in Cape Town (South Africa) that his firm initiated preliminary talks to make new acquisitions in sub-Saharan Africa (SSA).

Despite already offering reinsurance services in various SSA countries, the group still intends to expand in order to benefit from Africa’s growth regardless of actual challenges. In Africa, the insurance market has been quite dynamic over the past few years. In the recent weeks even, MMI Holdings arrived in Nigeria, Fairfax acquired Zurich Insurance South Africa and Axa, in partnership with British Chaucer launched insurance products for special risks.

For Leadway which is targeted by Swiss Re, the past year was not the best. The firm, despite seeing received premiums surge 20% to N46.6 billion ($159.5 million) had its net profit fall by N12.9 billion in 2015. The company’s chairperson said the performance was due to an increase in annuities reserves.

Idriss Linge