Takeovers and mergers are gaining traction in Nigeria’s insurance industry as stakeholders await presidential assent to the Insurance Industry Reform Bill. On July 2, 2025, the National Insurance Commission (NAICOM) issued new licenses to SanlamAllianz Life and General Insurance in Abuja, following the successful merger between Sanlam and Allianz.
NAICOM’s Commissioner for Insurance, Olusegun Omosehin, urged the merged entity to prioritise good corporate governance and timely claims settlement, expressing confidence that the union would enhance industry growth.
Earlier, Endura Investment Global Limited acquired a 24% controlling stake in Standard Alliance Insurance Plc, leading to the exit of former owners and a rebranding to Fortis Global Insurance. The company has submitted financial statements up to 2020 to the Nigerian Exchange Limited, with further structural changes expected following resolutions from its June 16 board meeting.
These developments come as the Insurance Industry Reform Bill, which has passed both legislative chambers, awaits the President’s signature. The bill seeks to repeal outdated insurance laws and establish a comprehensive legal and regulatory framework for the industry.
Key reforms include a significant increase in minimum capital requirements: non-life insurance to N25 billion from N10 billion, life insurance to N15 billion from N8 billion, and reinsurance to N45 billion from N20 billion, or risk-based capital as determined by NAICOM. The bill retains the “no premium, no cover” principle and caps commissions across various classes of insurance while allowing regulated incentives such as “no claims” discounts and risk improvement incentives.
It also mandates compulsory insurance coverage for group life policies for employees, public buildings, federal assets, petroleum stations, and third-party motor insurance, among others, while introducing a Road Safety and Accident Victims Compensation Fund.
Analysts highlight that the increased capital requirements are intended to bolster financial stability and the industry’s ability to absorb shocks, though smaller operators may face challenges meeting the new thresholds. The bill’s provisions are expected to encourage further mergers and acquisitions within the sector, facilitating the emergence of stronger, well-capitalised players.
Sanlam and Allianz’s merger, which was finalised in September 2023 to form SanlamAllianz Africa, predates the bill but reflects the consolidation trend. The joint venture aims to become a leading pan-African non-banking financial services provider across 27 countries, offering insurance, asset management, and health services.
Fortis Global Insurance is also restructuring its operations, planning to create standalone entities for its life, general, and investment divisions while transitioning to a holding structure. Additionally, emPLE Group’s acquisition of Old Mutual Nigeria’s life and general insurance businesses, completed in 2024, has positioned it to expand its offerings within the country.
Advisory firm Deloitte notes that the reform bill could significantly boost Nigeria’s financial services sector, enabling insurers to retain more risks domestically, improve wealth protection, and support broader economic growth. The bill’s passage is also expected to drive innovation within the sector as insurers leverage technology to expand penetration and efficiency.
Pan-African rating agency Agusto & Co. projects that the bill will trigger a capital injection of approximately N600 billion into the industry, enabling companies to meet the new requirements while enhancing underwriting capacity and resilience.
While challenges remain, stakeholders view the upcoming reforms as an opportunity for the Nigerian insurance sector to strengthen its foundation, improve consumer trust, and play a more impactful role in the national economy as the country pursues its $1 trillion GDP target by the decade’s end.
