Berth of Mansard marks new era in insurance industry

The CBN had in 2010 directed all banks to divest from non-core banking businesses, which include insurance, pension funds management, brokerage firms, mortgage banks and other interests. The CBN said in the policy dated October 4, 2010, that any bank that intends to keep such interests must evolve a holding company that will hold all of the companies including the bank. The objective of the apex bank directive was to allow professionalism in the financial sector, away from universal banking structure introduced in 2004, which made banks to put their hands in all pies with the intention of being a one-stop shop. Among the insurance companies affected by the development were: Oceanic Insurance Group, Zenith Insurance, Intercontinental Wapic Insurance, Guarantee Trust Assurance Company Limited, Unity Kapital Assurance Limited, ADIC Insurance Limited, Union Assurance Limited, First Life Assurance Company Limited, Sterling Assurance, Finsurance, as well as Spring Life Assurance Company Limited. In his view about the CBN directive, Shehu Mikail, national president, Constance Shareholders Association of Nigeria, agreed that the repeal of the universal banking system was necessary to enable the banks concentrate on their core business of banking, thereby promoting professionalism in the industry. Opportunity for investors The direct implication of the CBN policy was the creation of investment window for some foreign investors who are searching for opportunity to penetrate the Nigerian market considered juicy. Before the expiration of the deadline on April 3, 2012, almost all insurance companies, which were either wholly or substantially owned by banks, were bought by local or foreign investors. Wema Bank divested its stake from GNI, through a management buyout arrangement; Diamond Bank divested from ADIC Insurance, Skye Bank also divested its stake from Law Union and Rock Insurance and Crystalife Assurance, Oceanic International Bank, now Ecobank plc, divested its stake from Oceanic Life and Oceanic General Insurance, selling its shares to a South African firm. International interest in GTAssur now Mansard Guaranty Trust Bank was said to be one of the earliest banks that commenced divestment from its insurance subsidiary, Guaranty Trust Assurance plc. Last year, following changes to the universal banking concept, Assur Africa Holding, a consortium of three European Development Finance Institutions (DFIs), and two Private Equity (PE) firms acquired a 67.68 percent shareholding in GTAssur, resulting in a need to change the company’s corporate identity - now called Mansard Insurance plc. The DFIs are: FMO – Netherlands Development Finance Company (Holland), DEG – German Investment Corporation (Germany), PROPARCO – French Development Finance Company (France). It is gathered that both FMO and DEG are rated AAA by Standard & Poor’s, the world’s leading rating agency. Rebranding, as Mansard berths The significance of rebranding is that it refreshes a product. Experts say that companies that don’t employ rebranding strategies at the right time often find themselves slipping away from competition. The importance of maintaining a strong brand image means always catering to consumer needs. Basically, rebranding is said to be associated with developing a new look, feel, or energy, even for your product, service, business. A successful rebranding effort is built on the concept that a brand has to occupy a place in a consumer’s mind. The importance of rebranding has never been so critical; with new management, new enhanced technology released almost daily, business needs to respond quickly to maintain the image associated with the latest products, new trends and to retain confidence. A brand is built through an internal processing of its brand’s DNA based on empirical research. It was on this concept that Guaranty Trust Assurance plc, one of Nigeria’s foremost insurance companies, was rebranded Mansard Insurance plc. The rebranding marks the conclusion of the company’s evolution from a subsidiary of a leading Nigerian bank into an independent insurance company. Mansard Insurance was incorporated in June 1989, and has gone through many phases including a nine-year ownership by Guaranty Trust Bank, which ended in 2011, with the acquisition of majority shares by Assur Africa Holding. Mansard Insurance was listed on the floor of the Nigerian Stock Exchange (NSE) in November 2009, and its market capitalisation is currently N16 billion, making it the insurance company with the highest market capitalisation on the NSE today. Over the last eight years, Mansard Insurance has grown its turnover at a Compounded Annual Growth Rate (CAGR) of 85 percent in an industry with a CAGR of just 16 percent over the same period. The company has progressed from being in 97th position (in terms of market share) out of 103 insurance companies existing in 2003, to a joint third position out of 50 insurance companies in 2011. This growth has attracted the attention of analysts from across the world. In September 2010, Global Credit Rating Company of South Africa rated the company A+ for Claims Paying Ability and B- for Issuer Credit Rating. In the same year, AM Best, the world’s leading specialist insurance rating agency, gave Mansard Insurance a B rating for International Credit and BB+ for Financial Strength. Also, Agusto & Co gave it a rating of A+ for Credit Risk. These ratings, according to the management, are the highest received by any insurance company in Nigeria. Little wonder the company received the Marketing World award for Brand Excellence in 2011 and Web Jurist adjudged Mansard’s website as the best for Site Content and Technical Structure. Early this year, Mansard received a Great Place to Work award as being the third best place to work in Nigeria. In the words of Tosin Runsewe, chief client officer, “Mansard is another word for a roof. A roof is a symbol of protection. The concept of a roof speaks to the consistency and dependability that our brand has with our customers. Our customers are safe under the Mansard Roof.” He concluded his new brand introduction by stressing that “While GTAssur has evolved into Mansard Insurance plc, the same company continues with the same people having the same values. “The new brand also brings back from our past the colour green, which was the primary colour of Heritage and the old Guaranty Trust. Yet, green is also the colour of growth, the colour of spring, of renewal and rebirth. It renews and restores depleted energy. It is the sanctuary away from the stress of life, restoring us back to a sense of well-being. Green is the great balancer of our mental, emotional and physical energies, which is why there is so much green on our planet. As in nature, green leaves are an indication the plant is still growing. It is also the anticipation of things to come. Green represents the future, as Mansard Insurance represents our future.”