In addition to Ghana, we plan to move into three or four countries in West Africa – a virgin territory waiting to be explored

In Nigeria, the insurance sector is staking out new territory in the economy’s main growth areas. With GDP growth projected by the IMF at 9.07 percent in 2008, investment targets include real estate, equity markets, the food & beverage sector and the hospitality industry. Cyril Ajagu highlights the company’s mid-term strategy.

How would you describe your company’s growth strategy?

Universal Insurance Plc has always invested in key growth areas of the economy, which is essential for sustainable value creation. These include real estate, a sector in which we will continue to invest. We have also acquired 25 hectares of land on the Lekki corridor. This is in addition to our estates in Enugu, comprising 10 fully developed duplexes and about 20 others at different stages of construction.

Are you favoring residential over commercial space?

No, it is a broad portfolio of real estate products. For example, we acquired 20 duplex apartments in Abuja, specifically at Vine Estate, which will be completed by November 2008. We have also bought a model office complex along the popular Aba Road in Port Harcourt. There is also the new corporate office building in Lagos. Many other transactions are currently being negotiated.

What segments of the hospitality industry are you focusing on?

In terms of hotels, the portfolio is highly diversified. Our four-star hotel in Enugu will be operational by October 2008. We hired professional hotel managers to run these operations. We are also working together with partners to make sure that both Universal Hotels in Enugu and Abuja come on-stream in the course of 2008. Our Abuja hotel is being equipped to become one of the best in the country, catering to the high end of the market.

How have the latest acquisitions by Universal Insurance shifted the company’s perception among foreign investors?

Because we are putting money into high-growth industries, and thus helping to create value, we are able to better assist foreign investors and financial organizations. They now perceive Universal Insurance as a vehicle to enter Nigerian real estate, the hotel sector, and domestic food & beverage. Despite market trends elsewhere, these continue to be coveted areas of the real economy. They offer strong returns on investment.

Do you also foresee expansion into neighboring markets?

In addition to Ghana, we plan to move into three or four other countries in West Africa. Foreign investors will then be able to leverage our regional presence and local market knowledge. Our experience has shown that this part of Africa is like a virgin territory begging to be explored.

What is the ultimate goal for a highly diversified insurance company?

We want to get things right, now and in the future. True to that tenet, we are putting the structures in place that will drive our brand. This includes solid IT infrastructure, good corporate governance and healthy investments that can support claims settlements.