The introduction of mergers and acquisition, the back ground of the study which states the different problems that brought about mergers and acquisitions which are the inability for the industry to settle claims, bad eggs in the insurance industry/ poor management of founds in the industry, inability to bring up better services and innovative ideas that can enable the industry grow. Insurance has not been able to get to the rural area, it makes insurance non-popular profession that one must study, but since it has failed in this area, the common man find it difficult to know what insurance is all about.
In order for the industry to stop the liquidation in the industry, the body called the insurance commission now brought about this means of merger and acquisition to improve and uplift the industry to have an outstanding and stronger insurance in Nigeria.
CHAPTER ONE
1.0 Introduction 1
1.1 Background of Study 1
1.2 Statement of Problems 3
1.3 Objective of the study 5
1.4 Significance of the study 6
1.5 Scope of the study 6
1.6 Limitation of the study 7
1.7 Definition of terms 7
CHAPTER TWO
2.0 Literature review 10
2.1 Concepts of mergers and acquisition 10
2.2 Why mergers and acquisition 11
2.3 Methods of mergers and acquisition 15
2.4 Types of mergers and acquisition 17
2.6 Statutory provisions for mergers and acquisition 20
2.7 Impact and roles of government bodies on
mergers and acquisitions 24
2.8 References 26
CHAPTER THREE
3.0 Research design and methodology 28
3.1 Sources of data 28
3.2 Population of the study 29
3.3 Sample size 29
3.4 The Questionnaire 29
3.5 Collection of data 30
CHAPTER FOUR
4.0 Presentation and analysis of data 31
4.1 Analysis of the questions
CHAPTER FIVE
5.0 Summary of findings and conclusion 47
5.1 Conclusion 47
5.2 Recommendation 50
5.3 Bibliography 52
5.4 Appendix 53
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Merger is involved with the combination of two different companies to form one entity with the intension of achieving a particular goal. While
Acquisition takes place when one company purchases the assets of another and inherits its liabilities. Mergers and acquisition was introduced into insurance industry due to their:
INABILITY TO SETTLE CLAIMS; since the taste of a good insurance transaction lies in the manner in which claim is being handled by the industry, but majority of our insurance industries have failed due to lack of fund to settle or compensate their insured. And this leads to lots of disputes between the insurance and their policyholders, and this area has impinge more on the image of an insurer and the insurance industry as a whole because most of the industries cajole their insurers into paying premium when due, but slow down when it comes to paying claims. Reasons is because most of the industries don’t have sufficient funds or the investments that fetch money to enable them settle their clients, but rather formulates a thing or the other to wave the settlements. This has brought a bad name to insurance company as a whole as people call them names like selfish lots, sets of legalized cheats it’s a useless exercise to insure in Nigeria and that their clauses are hardly explained to clients while selling polices.
INABILITY TO BRING UP BETTER SERVICES AND INNOVATIVE IDEAS; the industry have not been able to encourage some new ideas/methods of operation that will enable the industry remain competitive and strong. Since there are still some rural areas where insurance has not touched, the industry has failed by not educating the common man of what insurance.
Is all about and the benefits, for instance, most of our tertiary institution don’t know insurance as a cause to study all because they feel the industry is full of fraudulent people. In villages, they know nothing about insurance (i.e to them, such thing never exists) and some of them has never head such words for the first time, infact most of our up-coming students LOOK down on it as a course to study due to lack of knowledge.
INABILITY TO ELIMINATE BAD EGGS (I.E BAD AGENTS / POOR MGT); Most of the insurance agents are the bad eggs that should be eliminated. SOME of the agents are not insurance agents they claim to be,but because of the money they are making from the business and this lead them to establish a mushroom insurance company without license in order to dupe people the more. This acts gives bad name to the industry. Furthermore, most of the sole called managers, underwriters, Brokers etc lack basic academic and professional insurance knowledge, and as a result, they do not contribute meaningfully to the operations of the industry.
1.2 STATEMENT OF THE PROBLEM
The subject matter of this research work borders on “Empirical study into the possibilities of mergers and acquisitions in the Nigerian insurance industry”. Below are some problem areas associated with this study;
Effect of the possessive attitude of Nigerians to shares and even the whole business – “What I have hold syndrome.”
Effect of the complicated, cumbersome and expensiveness or procedures of mergers and acquisition which serves as legal vehicle for companies reconstructions.
Effect of the double requirement of a majority in number and value for the approval of a scheme of arrangement.
Effect of the recourse to the use of unorthodox means against dealing with directors who will be seeking to take away other people’s business instead of minding their own business.
The share capital base of insurance industry is as follows:
i. Life assurance - N2, billion
ii. General insurance - N3 billion
iii. Life & general - N5 billion
The industry is given effect from February 2007 to meet up with their payments. As a result of this, most of the industries have gone into selling of their stocks like shares in order to meet up with the payment to safeguard their company.
1.3 OBJECTIVE OF THE STUDY
The major purpose of this study is to find out the possibility (if any) of insurance companies in Nigeria going into mergers and Acquisitions as an option for the achievemen
| 1 - 5 of 96 Reviews |