Clientèle to boost ailing Nigerian subsidiary
| SURE KAMHUNGA |
Mr Soll said IFA Nigeria, which started selling life insurance policies in August 2008, has faced challenges, particularly regarding collecting premiums.This is a trend Clientèle wants to reverse by tightening up on collections in the same way it is doing in SA.
“Nigeria is a huge market for us with a lot of potential but of course it has its own challenges,” he said. “The distribution model that we have been using successfully in SA can work in Nigeria.
“But, having said that, we are just building up (in that market) and we are not out to conquer the world, and if we do things right, like collections and the distribution model, it will work.”
Clientèle’s annual results to June show that the Nigerian operation posted a pretax loss of R23,3m, an increase of R2,3m compared with the previous comparative period.
In the past year the group has scaled down on expenses to ensure the development of the Nigerian operation does not strain group resources.
Mr Soll said he had hopes that in time the business will grow because of the potential in the Nigerian market. But he is not too keen on a frenetic Africa-wide expansion, saying it is better to consolidate in one market before venturing into other territories.
Insurance experts believe markets in sub-Saharan Africa are potentially lucrative in the long run despite inherent problems, such as the lack of sophisticated markets.
Mr Soll said Clientèle is preparing another onslaught to increase market share locally.
“I think the worst is behind us and, having realised good results for the past year, there is nothing that we are unaware of that will hold us back.
“We are more focused on what we are doing well,” he said.
Source - Businessday.co.za
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