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NSIA Group takes over 80% shares in CDH Insurance

By Fred SARPONG

The Nouvelle Societe Interafricaine d’Assurances (NSIA), a company with a experience in the banking and insurance industry in mostly the French-speaking countries in Africa, has acquired 80% shares in CDH Insurance, with the remaining 20% held by individual Ghanaians.

The company, which was founded in Abidjan, La Cote d’Ivoire, barely 16 years ago, has about over 18 subsidiaries from 11 countries, including NSIA Ghana, and one is in the process of being established.

The countries include Senegal, Gabon, Congo, Guinea Bissau, Togo, Benin, Cameroun, and La Cote d’Ivoire.

Before the official launch of NSIA Ghana in Accra last week, the Group Chairman of the company, Jean Kacou Diagou, and all the managing directors from the subsidiary companies from other African countries, had a group strategic committee meeting.

BusinessWeek learnt that the meeting was to develop some strategy on how the NSIA Ghana can break into the Ghanaian insurance industry and make an impact as far as insurance policies are concerned.

Some of the products expected to be introduced by NSIA Ghana are micro-insurance, bancassurance, pension plan, capital retirement plan, education insurance plan, death benefits or absolute and permanent disability benefits, funeral cost cover through NSIA Assistance Funerailles (a flexible funeral assistance product), post-retirement health cover through NSIA Vitails, and insurance by capitalization to obtain financing for a home acquisition through NSIA Lodgement.

Bene B. Lawson, the Director General in charge of the NSIA Group Insurance, sector told BusinessWeek that NSIA is one of the leading insurance companies on the Africa market for over 10 years.

On the strength of annual growth of about 20% for five years running, the group aims to increase its market share in the Inter-African Conference on Insurance Market (CIMA) zone from about 10% in 2009 to more than 15% by 2015.

Last year, the company report indicated that its consolidated turnover increased by 19% from about 71.9 billion CFA francs in 2007 to more than 89 billion in 2008.
The banking affiliate aspect of the group (BIAO-CI) net went up from 15.8 billion CFA francs to 22.2 billion in the same period, representing 40% increased.

BusinessWeek learnt that all the subsidiaries, except for Senegal and Congo, showed an improvement in net income, with those of Togo, Benin and BIAO-CI even posting increases of 200% to 400%.

The Group has said that it hopes to achieve its objective of consolidating its leading position in the sub-region by generating about 125 billion CFA francs in turnover and realizing a 10% rate of return by 2015 in its insurance sector.

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