AFIG Funds acquires 29.9% shares of Nigeria’s NEM Insurance

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LAGOS, Nigeria, 18 January 2019, -Naija247news.com- NEM Insurance Plc (“NEM” or the “Company”), a leading insurance group in Nigeria announced that Advanced Finance and Investment Group (“AFIG Funds”), a leading African private equity fund manager has, through AFIG Fund II, completed an investment in the Company, by acquiring 29.9% of the Company’s shares from some existing shareholders of the Company (the “Transaction”).

This Transaction now makes AFIG Funds the largest shareholder in NEM, and marks the commencement of a strategic partnership between AFIG Funds and NEM, as the Company embarks on its next growth phase as a top-tier player within the Nigerian Insurance Industry.

NEM Insurance is a top-tier non-life insurance company which has been in operations in Nigeria for over 60 years, and more recently in Ghana. The Company offers all classes of non-life insurance products to individuals and corporates in Nigeria, and has over the years become a household name. NEM has over the last decade built a solid record of service delivery excellence, superior financial performance including consistent profitability and healthy returns to its shareholders.

Mr. Tope Smart, Group Managing Director of NEM Insurance, said of the investment: “We are delighted to welcome AFIG Funds as a significant shareholder in NEM at such an exciting time in the Company’s evolution. This partnership with AFIG Funds is the outcome of several years of constructive engagement, as well as a thorough internal strategic process to identify and engage with the best long-term institutional partner for our Company. We look forward to continue to benefit from AFIG Funds’ extensive experience investing in strong African companies particularly in financial institutions. We believe this partnership will accelerate the realization of our growth ambitions within Nigeria and across the continent. We are confident this will be a fruitful and mutually rewarding partnership.”

Mr. Kelechi Okoro, Director of Investments at AFIG Funds, said: “Through our engagement with NEM over the last several years, we have had the opportunity to observe its solid trajectory, and to develop confidence in the management team’s ability to seize growth opportunities in the increasingly competitive landscape”.

Commenting further, Mr. Papa Madiaw Ndiaye, CEO of AFIG Funds, said: “We are excited about our partnership with NEM Insurance and the Company’s strong growth prospects. NEM is one of the fastest-growing, best-capitalized and most consistently profitable underwriters in Nigeria. Our decision to invest in NEM during an election year in Nigeria, which is a time when foreign investors tend to shy away from emerging markets, is testament to our strong belief in the prospects of the Company and in the resilience of the broader economy. We are keen to begin working with management, the Board of Directors and other shareholders to execute on the many promising initiatives to further unlock the Company’s significant potential.”

CardinalStone Partners Limited and Koya Kuti Solicitors acted as Financial and Legal Advisers, respectively to NEM Insurance Plc, while PWC Nigeria and Banwo & Ighodalo were Transaction Advisers to AFIG Funds.

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Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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