NSIA takes over CDH Insurance

CDH Insurance Company, a leading non-life insurer, has been taken over by the NSIA Group, an insurance and banking group based in Ivory Coast.

This follows a major acquisition of over 80% shares in CDH Insurance by the Group, which is headquartered in Abidjan, with the remaining held by private individuals.

Speaking to B&FT during a three-day strategic meeting of Managing Directors operating within the Group, which ends today in Accra, Mr. Bené Boévi Lawson, Managing Director, Insurance Section of the Group, said NSIA is very excited about the deal which represents another success story of the Group since it began to transform itself into a formidable pan-African entity.

He did not disclose the value of the acquisition.

He pointed out that NSIA is bringing to bear its continental exposure, expertise, financial strength and clout, which will help to position the company as a major force in the Ghanaian market.
“The practice of insurance is one language everywhere; however, experience and understanding of the market is key. That is why we need CDH and we believe CDH also needs us.”

“With this consolidation, CDH - now NSIA - is well-positioned to become the market leader in the non-life market. This is because all constituents of capacity will be built and Ghana ceases to be the only source of business for CDH - the same way NSIA has just enlarged its market. The focus is now the continent and that is exactly what we are in for,” Mr. Lawson emphasised.

He however declined to disclose any new capital the NSIA Group is bringing on board - at least until the launch ceremony tomorrow.

In 2009, a number of changes were made within NSIA to improve clarity and efficiency which saw the creation of an insurance branch headed by Bene Boevi Lawson and a banking branch headed by Martin Djedjes of the Banque Internationale pour l’Afrique del’Ouest (BIAO-CI).

The acquisition of CDH Insurance increases the Group’s presence, now in 11 countries on the continent with 18 insurance companies and an International Bank.

Available figures show that in 2008, NSIA’s turnover (before this consolidation) increased by 19% from about 71.9 billion CFA francs in 2007 to more than 89 billion in 2008.

BIAO-CI, its banking affiliate, also increased its net income from 15.8 billion CFA francs to 22.2 billion in the same period a 40% increase. All its subsidiaries, except Senegal and Congo, showed an improvement in net income; with Togo, Benin and BIAO-CI posting increases of 200 to 400%.

CDH Insurance (now NSIA Ghana) on the other hand in 2008 recorded a gross premium income increase of 13.3% from GH¢ 4.71 million in 2007 to GH¢5.34 million during the year under review.

Its investment income rose to GH¢453,000 in 2008 from GH¢359,000 in 2007, representing an increase of 26.2%, while net premium income went up from GH¢2.68 million in 2007 to GH¢2.78 million, an increase of 37%.

It was in pursuit of its geographical expansion objective that NSIA added two new subsidiaries in 2009, namely NSIA Mali and Guinea.

The Group’s aim is to consolidate its position in the sub-region by generating about 125 billion CFA francs in turnover and realising a 10% rate of return by 2015 in its insurance branch.

NSIA’s currently has footprints in Cote D’Ivoire, Benin, Senegal, Gabon, Congo, and Togo. Others include Cameroun, Guinea Bissau, Ghana, Guinea and Mali.
B&FT