The project sponsors are United Bank for Africa of Nigeria and Metropolitan Holdings Limited of South Africa. United Bank for Africa Plc (UBA) is one of the largest banks in Nigeria and West Africa. UBA is listed on the Nigerian Stock Exchange (NSE) and has a diverse shareholding base, including Nigerian and foreign investors. Today’s UBA is the product of the merger of Nigeria’s third (3rd) and fifth (5th) largest banks, namely the old UBA and the erstwhile Standard Trust Bank Plc (STB) respectively, and a subsequent acquisition of the erstwhile Continental Trust Bank Limited (CTB). UBA was founded 1961, and the erstwhile STB and CTB were both founded in 1990. Metropolitan Holdings Limited (MHL) was established in 1898 in South Africa and is currently the fourth largest listed life insurer in terms of market capitalization on the Johannesburg Stock Exchange (JSE). MHL insures the lives of more than 4.3 million, 80% of which are previously underserved black population in South Africa. MHL comprises six independent operating businesses, each with clearly defined areas of focus, performance and profit objectives: retail, corporate, asset management, international, health and credit card operations. MHL has 72 offices throughout South Africa, Namibia, Botswana, Kenya, Ghana, Lesotho and most recently Nigeria.

IFC’s anticipated investment in UBA-Metlife will be up to $3.0 million.

UBA Metropolitan Life Insurance Limited is incorporated in Nigeria with company number RC605083. The company’s principal operational and management offices are located in Lagos, Nigeria.

The potential developmental, institutional and capacity building impact of the project is high. The proposed IFC investment in UBA-Metlife will support the development of the insurance industry in Nigeria which is currently undergoing reforms. The Nigeria life insurance sector, in particular, is underdeveloped and the partnership between UBA, a strong local partner, with the world-class industry expertise of MHL, has the potential to transform an existing but dormant local insurer into a viable, world-class life insurer. Insurance companies have a disproportionately high impact on economies because they are necessarily large investors who directly affect the general economy through their operations. In order to settle claims that may arise, insurers invest excess premium income to build a portfolio of financial assets and income-producing real estate which can then be called upon to pay off any future claims that arise. A vibrant insurance industry can be a reliable source of long-term capital, which is lacking in Nigeria and other African countries. The provision of quality insurance is therefore crucial for the development of a healthy and dynamic private sector and long-term capital markets.

IFC’s expected development contribution are as follows: - Role of Honest Broker: IFC introduced Metlife to UBA and has played a key role in facilitating the joint venture discussions between the two parties. IFC’s investment in the joint venture will support a smooth development of the joint venture especially during the first few years of operation. - Corporate Governance: With IFC’s involvement as a shareholder and a potential board member, IFC would assist in institutionalizing international best practices in corporate governance policies and practices, and set high standards for transparency, disclosure and board functions. This will be a particularly important capability for a nascent company as it grows into a large institution. - Enhancing Credibility and Risk Perception: The life insurance industry in Nigeria has suffered from credibility issues due to delays in claims payment and lack of product innovation. However, due to the current reforms in pension provision and the associated mandatory group life insurance requirement, there is a strong potential for growth. IFC’s proposed investment will enhance UBA-Metlife’s credibility and risk perception in the market, thereby supporting the reforms and encouraging market participation.

Based on the available information, this is a category C project according to IFC’s environmental and social review procedure. No further environmental review is anticipated.