Moroccan group acquires majority stake in Continental Re

In from Success Allantee …
Saham Finances S.A, the insurance arm of the Saham Group founded by Moroccan tycoon Moulay Hafid Elalamy, has acquired the majority equity stake in Continental Reinsurance (Continental Re), gaining a greater foothold in Nigeria after initial investment in a private insurance company in November 2014.
Saham Finances acquired the majority equity stake held by Emerging Capital Partners (ECP) consortium through indirect acquisition of the holding company, C-Re Holding Limited, a Mauritius-based limited liability company wholly owned by the ECP Fund II Consortium. The ECP Africa Fund II PCC and its partners, which form the ECP Fund II Consortium, had through C-Re Holding Limited held 53.6 per cent equity stake in Continental Re.
ECP yesterday confirmed that Saham Finances has acquired C-Re Holding Limited, taking possession of the investment company’s current 53.6 per cent equity stake in Continental Re. Continental Re, which is quoted on the Nigerian Stock Exchange (NSE), remained unchanged at 94 kobo per share. Total trading on the stock yesterday stood at 98,885 shares valued at N90, 766.50 in seven deals.
Saham Finances had entered the Nigerian insurance market in November 2014 when it acquired 40 per cent equity stake in Unitrust Insurance Company Limited. Saham Finances bought 40 per cent equity stake in the Nigerian company through its Mauritian operating company-Colina Holdings Limited.
Managing Director, Saham Finances, Mr Raymond Farhat had hinted of further interests in Nigeria, noting that such investment would allow the group to consolidate its West African development, importantly in the continent’s biggest economy.
“Our desire is to combine the expertise of Saham Finances and those of our local partners to become a major stakeholder and bring the services offered up to international standards,” Farhat said when outlining the investment objective of the group in Nigeria.
One of the biggest Pan African insurance groups, Saham Finances recorded a turnover of more than $1 billion in 2014. As the insurance arm of the Saham Group, Saham Finances is actively following its growth strategy in Africa and the Middle East with presence in 24 countries through 49 subsidiaries, including 28 insurance and reinsurance companies through 650 branches throughout Africa and has a team of 2,260 collaborators.

Read also: New investor acquires major stake in Ecobank

In a statement, co-chief executive of Emerging Capital Partners (ECP) and outgoing chairman of Continental Re, Hurley Doddy said the ECP’s investment in Continental Re highlighted how the venture capital firm has helped high growth companies with proven business models to becoming regional champions.
“With ECP’s support, Continental Re has grown from a primarily Nigerian focused business into a pan-African reinsurer, increasing its presence on the continent from two to six countries. We believe that Continental Re will leverage Saham’s industry expertise and relationships across the continent to further achieve its goals in Africa and create value for shareholders,” Doddy said.
Continental Re was incorporated in 1985 and started business as a private reinsurance company in Nigeria. In January 1987, it began to operate as a general reinsurer and then became a composite reinsurer in January 1990, offering both treaty and facultative life and non-life reinsurance, with a well-diversified business mix and customer base.
It converted to a public limited liability company in 2000. After it recapitalized to the tune of N10 billion in 2007, it listed its shares on the NSE in May 2007.
With six client service centres in Nigeria, Cameroon, Cote d’Ivoire, Kenya, Tunisia and Botswana with Nigeria as headquarters, Continental Re operates composite reinsurance in more than 44 countries across the African continent.

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now