AFIG acquires NEM Insurance majority shares

NEM Insurance Plc, a leading insurance group in Nigeria has announced that Advanced Finance and Investment Group, a leading African private equity fund manager has, through AFIG Fund II, completed an investment in it by acquiring 29.9% of its shares from some existing shareholders.

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 NEM 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 operation in Nigeria for over 60 years, and more recently in Ghana. It offers all classes of non-life insurance products to individuals and corporate bodies in Nigeria, and has over the years become a household name.

Tope Smart, Group Managing Director, 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.”

Kelechi Okoro, Director of Investments, 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, Papa Madiaw Ndiaye, CEO, 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.