EMPIRICAL STUDY ON THE POSSIBILITY OF MERGERS AND ACQUISITIONS IN THE INSURANCE INDUSTRY IN NIGERIA

EMPIRICAL STUDY ON THE POSSIBILITY OF MERGERS AND ACQUISITIONS IN THE INSURANCE INDUSTRY IN NIGERIA

ABSTRACT: This project is divided into different stages for ease of reference and simplification of analysis which goes as follows:

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.

TABLE OF CONTENTS

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.

EMPIRICAL STUDY ON THE POSSIBILITY OF MERGERS AND ACQUISITIONS IN THE INSURANCE INDUSTRY IN NIGERIA