Norrenberger Advisory Acquires Moribund International Energy Insurance

Norrenberger Advisory Partners Limited (NAPL) has taken over the operation of loss making International Energy Insurance Plc (IEI) after it obtained the approval of the National Insurance Commission (NAICOM) to acquire 100% equity holding in the company.

In a disclosure by IEI, the development will enable Norrenberger to expand and strengthen its business model to improve its solutions and service distribution to clients across Nigeria.

The new owner will have to inject capital into the insurance company which has been recording recurring losses since 2013 as it is technically insolvent.

Norrenberger has obtained the final approval of NGX for the block acquisition of 50.6% equity in the first instance while it has commenced the process for approval of the Nigerian Securities and Exchange Commission for the Mandatory Take Over Bid to be able to acquire the remaining holdings of the Company.

Various engagements have been held with the representatives of the Retail Shareholders towards repositioning the Company.

With the acquisition, Norrenberger will expand and strengthen its business model to improve its solution and service distribution to Clients across Nigeria.

NAICOM’s Commissioner for Insurance- Mr. Thomas Olorundare Sunday welcomed the new owners and expressed his satisfaction with their interest in the Nigeria Insurance Industry despite the challenges faced by practitioners in the industry.

He further advised the incoming Board of the Company on the need for training of staff and Directors. He also emphasized that the Directors should be patient to understand the culture, nature of the principles and  practices of Insurance because of the peculiarities of the Insurance business.

He assured the Board of the Commission’s unparalleled support and cooperation. The Chairman of the Board’s mission to significantly contribute to the transformation and growth of the Insurance Industry by leveraging on technology and top-notch human capital. He further reassured the Regulator of Norrenberger’s cooperation and commitment to strict compliance with laid down regulation while focusing on the growth plan of the Company.

The Provisional Board Chairman expressed his gratitude to the outgoing Interim Board for laying a solid foundation to enable the provisional Board thrive and make its contributions to the development of the Insurance Industry in Nigeria. It is important to note that IEI has been overwhelmed by huge liabilities and it is in need of capital injection.

For instance, its total liabilities of N19.50 billion exceeds assets of N8.72 billion, resulting in negative retained earnings of N10.95 billion. The insurer is spending its way into the future as management expenses of N1.20 billion is 2.64 times net premium income.

The members of the Provisional Board proposed by Norrenberger to NAICOM are:

1. Buka Goni Aji, OON, CFR- Chairman
2. Anthony Edeh
3. Mohammed N. Mijindadi
4. Ebun Ayeni
5. Chamberlain Peterside
6. Adeyinka Hassan
7. Monsurat Ayoola
8. Oluwateniola O. Eleoramo