IGI's growth strategy can be summarised as follows:
Organic Growth Plans
This will be addressed through the Company's planned branch expansion. IGI's branch network currently stands at 24 with locations in Lagos (3), Abeokuta, Akure, Ibadan, Oshogbo, !fe, !lorin, Abuja (3), Kaduna, Kano, Enugu, Onitsha, Port-Harcourt (2), Eket, Warri, Benin, Jos, Makurdi and Maiduguri. We have plans to increase this by opening ten (10) branches every year for the next three years and five (5) branches in the fourth year.
One of IGI's key strengths is its wide branch network; its branch spread being the second largest in Nigeria. We foresee that with the current reforms, while other survivors are trying to setup and work on improving their structures in terms of spread and reach, IGI would have the advantage of speed in accessing the increased opportunities in the insurance sector.
IGI has built an investment strategy which is focused on creating optimum value for its shareholders. It invests in green field companies with huge potential and unrealised value, and after the required gestation period for these companies has run its course, it expects to dispose of its stake in the companies, hence unlocking massive value for the shareholders of IGI.
Inorganic Growth Plans
Regional Reach - Globalisation cannot be ignored in any economy and industry, and it is especially relevant in the insurance sector, taking into consideration the volumes of insurance business that are transacted across borders and the actual premium ceded abroad to foreign organisations.
IGI has been involved in a number of business expansion projects in the East African sub-region. With its recent acquisition of a 60% stake in the National Insurance Corporation of Uganda, IGI is positioning itself to be a major player in the African market. Accordingly, IGI is gradually implementing its regional acquisition strategy in the East African sub region. There are already other similar transactions in the pipeline. IGI also has plans to expand to countries in the West African subregion.
Revenues from such investments are expected to accrue in form of:
1. Management/Technical Fees;
2. Re-insurance premiums; and
3. Dividends.
These are expected to contribute significantly to IGI's streams of income flow, now and in the future.
Again with the on-going West African regional expansion strategy being implemented by Nigerian banks, there would be potential insurance business transactions which IGI can tap into and benefit from, as the banks position themselves to maintain very visible presence in the West African region.
Consequently, in addition to our plans of growing the Company internally, we also intend to explore the merger & acquisition route of growing the Company as we realise that this represents a faster route of growth. Our plans in this direction are discussed in detail in the section on future plans. |
