International Finance Corporation (IFC), a member of the World Bank Group, has announced an agreement to provide a $20 million convertible loan to AIICO Insurance plc, to support its expansion activities across Nigeria. The expansion of insurance services helps increase economic security and creates the development of new asset pools that can be invested in order to support economic development, including job creation. The transaction has been signed in Lagos.
AIICO will use the loan facility to increase its agency network and retail centres and increase its reach and footprint across the country. The facility will also enable AIICO further strengthen its information technology platform to achieve greater efficiency in claims processing and customer services, says Edwin Igbiti, managing director, AIICO Insurance plc.
AIICO Insurance offers life and non-life insurance products to individuals, households, and businesses with a focus on value creation. “Partnering with IFC will help AIICO expand its activities further to meet the needs of the consumers who require more options. It will improve AIICO’s operational efficiency and strengthen the economic security and prosperity in Nigeria,” Igbiti says.
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IFC’s global insurance strategy aims to increase the penetration of insurance in underserved markets, promoting diverse products and developing long-term partnerships with institutions that can help expand its developmental goals.
Eme Essien Lore, IFC country manager for Nigeria, said: “Availability of insurance coverage is an important enabler of managing economic risk and promoting security of consumers and private businesses. IFC’s support to AIICO’s expansion reinforces our commitment to improving social stability and economic growth in Nigeria.”
IFC encourages a diverse range of insurance products, including property, health, agro, life, micro insurance and pensions. IFC mobilises additional resources through global and regional insurance companies, other developmental financial institutions, and financial investors.
The insurance firm is the market leader in life assurance and annuity services market and offers life, non-life insurance, pension management, health insurance and asset management. It is the second largest insurer in Nigeria by gross premiums and has maintained a top three position over the last five years.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, it uses its capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, it provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development.
