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AIG withholds $15m investment in AIICO


June 07, 2007/Punch (Picture & News)



The Managing Director of Aiico Insurance Plc, Mr. David Sobanjo, said on Thursday that the alliance between Aiico and American International Group had been put on hold as a result of Nigeria’s perceived political instability.


He said that for now AIG had reneged on its promise to inject $15m as equity participation in Aiico as a result of the unstable pre-election political crisis.



At the peak of the recapitalisation programme, the American insurance giant, AIG, had returned to the country and went into an agreement with Aiico to enable it use the insurance firm as a platform to service the West African sub region.



AIG then offered to inject $15m as equity participation in Aiico about the same period the International Finance Corporation, an arm of World Bank, also had an agreement with Leadway Assurance Company Limited to inject $14m into the company.



Sobanjo, at the preliminary stage of the agreement, which saw representatives of AIG visiting the country, had said that the investment would enable AIG to operate fully in Nigeria by the beginning of 2007 in the non-life segment of the market.


He also said that the investment by AIG would most likely reflect in change of company name into AIG Nigeria.



Indications also emerged on Thursday that the IFC had paid $14m to Leadway and was going ahead with the board arrangement in spite of the perceived political instability and crisis rocking the insurance sector over recapitalisation.


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