South Africa’s Liberty Holdings will acquire a 75 percent stake in a Nigerian long-term insurer for $12 million (N3.66 billion), the company said on Friday.
“We see Nigeria as a market of the future,” Liberty Chief Executive Thabo Dloti said.
He added: “It may be having difficulties now, but everything indicates to us that in the long term, Nigeria is going to be a big contributor of growth if you are doing business in Sub-Saharan Africa.”
Further details of the deal were not disclosed.
Liberty is South Africa’s fourth biggest insurance firm by market value. It already has presence in Nigeria through Total Health Trust, after buying the remaining shares it didn’t already own for 142 million rand in August 2015.
According to MyBankRate, part of Liberty’s strategy is to grow its presence in West Africa through the long-term insurance business and entering the asset management business.