A SURVEY ON THE RECAPITALISATION, MERGERS AND ACQUISITIONS OF THE NIGERIAN INSURANCE INDUSTRY

Abstract

The reaction of the insurance underwriters towards the recapitalization exercise in Nigeria is investigated. Fifty-four questionnaires were properly filled and returned from members of staff of some selected insurance companies, upon which descriptive analytical tools and chi-square statistical tool were used. From the analysis, recapitalisation has been enhancing the development of insurance industry and mergers and acquisitions have remained a viable option for them to remain in business. Based on the findings recommendations were made; insurance industry should not wait until they are compelled by law to increase their capital base. Recapitalised insurance companies should have strategic alliance with the multinationals in the country for technical and business support for the local underwriters. Also, the industry’s regulatory mechanism should produce a strong pressure group to make a presentation to the government for legislation to conserve our foreign earnings and retained insurance premiums paid to the foreign underwriters who absolutely control some of our insurance business in Nigeria.