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Custodian & Allied completes acquisition of Crusader

By on April 10, 2013

Consequent upon the merger between Custodian & Allied Insurance Plc and Crusader Nigeria Plc, the board and management of both insurance companies, have announced that the emergent entity will henceforth be known as Custodian & Allied Plc.

This is just as the Nigerian Stock Exchange (NSE), last week, said it received a proposal for the merger African Alliance Insurance Plc with Universal Insurance Plc, for which APT Securities and Funds Limited is acting as Broker to one of the parties in the proposed business combination. The parties, the exchange said, has submitted a Pre-Merger Notice of the proposed merger.

According to a statement by Chukwudum Ofomata, Brand & Communications Manager, Custodian and Allied Plc, the merger has created the integration of skills, information technology (IT) and back office processes which will be to the advantage of the customers of the company.

“Our merger has created invaluable integration of skills, information technology and back office processes. Now customers can take advantage of our increased spread, improved operational efficiencies and expanded product portfolio.

“The merger between Custodian & Allied Insurance Plc and Crusader (Nigeria) Plc leverages on 79 combined years of insurance and financial services experience,” he said.

According to the statement, the strengths of Custodian & Allied Plc are its stronger balance sheet, financial capacity, improved operational efficiencies and an expanded product portfolio, adding that the firm has greatly expanded its scope of services with the merger with Crusader (Nigeria) Plc.

Crusader started insurance business in Nigeria in 1958 as a foreign office of Crusader Insurance Company Limited, Reigate, United Kingdom, underwriting only life and pension businesses. It became a wholly Nigerian Company in 1970 and in 1989 it became a public liability company. Its shares were listed on the Nigerian Stock Exchange in 1990 under the name Crusader Insurance (Nigeria) PLC. Following the 2007 consolidation exercise in the Insurance Industry, Crusader Insurance (Nigeria) Plc transformed Crusader (Nigeria) Plc.

Custodian & Allied Insurance Plc is a wholly owned Nigerian company. Its sole purpose is to develop, package and deliver innovative insurance products that best satisfy customer needs, whilst operating a highly profitable, efficient, resourceful and ethical organization that will survive well into the future and be a valuable asset to its shareholders.

The company’s Board comprises individuals who have proven track records in their various fields of endeavour, thereby bringing several years of experience to bear upon the Board.

Custodian & Allied is a registered member of the Nigerian Insurers Association (NIA) and is approved by other regulatory bodies in Nigeria to offer insurance services in the country.

According to www.insuranceadvice.com, the merger of both companies had nothing to do with an impending foreclosures by industry regulator, the National Insurance Commission (NAICOM), as it was driven by the need for enhanced revenue opportunities and the desire for a strong financial capacity.

“The Post Merger Custodian will have the balance sheet size, increased scale and financial strength to drive organic growth and compete effectively in the post-consolidation insurance industry. It would also be able to take up big ticket transactions and larger volumes of business; thereby increasing its market share. The emerging entity will have assets and shareholders’ funds in excess of N40 billion and N18 billion respectively,” it said.

There is also the need for improved operating efficiencies as the emergent company would benefit from a significant cost reduction and enjoy operational efficiencies; in addition to having an expanded product portfolio through diversification into several lines of financial services like trusteeship, life insurance and pension business, thus creating further income streams and potential growth opportunities

A statement by the company explained that ”the merger will also strengthen the insurance business of the post–merger Custodian, by leveraging on Custodian’s liquidity, brand, renowned expertise and the combined products and market capabilities of both companies. Furthermore, customers will be able to enjoy benefits relating to greater accessibility, diversification of the product portfolio, and increased service delivery.”

For African Alliance Insurance, the NSE statement at the weekend said: “Upon consummation of the merger, all the shareholders of African Alliance Insurance Plc will in exchange for each share held in African Alliance Insurance receive such share(s) in Universal, the surviving entity, as agreed by the Parties. Post-Merger, it is the intention of the Parties to change the name of the surviving entity to Universal Alliance Insurance Plc.”

 

 

[Daily Independent]