Holland Insurance, in partnership with its shareholder, IVM Intersurer, has expanded its footprint into West Africa through a majority-stake acquisition in Ghana’s Metropolitan Insurance Company (Met Insurance).
Together, Hollard and the Netherlends-based holding company,
IVM, will provide support to Met Insurance in optimising its operations in Ghana and growing its market share.
“The Met Insurance purchase is not Hollard’s first encounter with Met,” says Frans Prinsloo, managing director of Hollard International. “Hollard has been collaborating with Met Insurance in a joint venture (JV) that has developed and distributed bancassurance products through Barclays in Ghana. The JV saw us add our significant experience in the development of alternative products and distribution channels to Met Insurance’s established presence and administrative abilities.”
IVM and Hollard’s approach in entering new territories has been to lean on the experience of a local partner. While Hollard’s brand and business model has proved effective across multiple and highly varied markets, it has always recognised that local knowledge and participation is essential for growth, Hollard Insurance commented in a press release on Friday.
Both IVM and Hollard have recognised the factors that have allowed Met Insurance to achieve considerable success in the Ghanaian insurance market. As a result, the approach will be to fine-tune the Met Insurance strategy and structure so that these success factors can be accentuated and enhanced, the release sated.
The two major local shareholders in Met Insurance, Sttar Trust and Ghana Re remain committed to the growth of Met and will remain as shareholders in the business.
A promising market
Ghana offers exciting prospects for innovation and the development of insurance products in both personal and commercial lines. The country’s short-term insurance industry generated turnover of over USD150 million in 2013, and grew by over 25 per cent over the past five years, making it one of the fastest growing insurance markets in the world.
Ghana boasts one of the most exciting economies in West Africa and provides a largely predictable business environment. It also has strong political and economic relationships with its West African neighbours and with foreign investors. As a result, an increasing number of multinationals are looking to use Ghana as their launch-pad into this diverse and promising region.