FBN Holdings to Sell FBN Insurance to Foreign Firm

By Dipo Olowookere

The management of FBN Holdings Plc has said there are serious considerations for selling off its stake in its insurance business.

FBN Holdings has majority shares in FBN Insurance Limited with Sanlam Limited controlling the minority stake at a ratio of 65:35.

On Wednesday, FBN Holdings said it was having discussions with Sanlam on the possibility of transferring its 65 percent to the private company.

It explained that this was in line with the organisation’s strategic objectives.

It further said the regulators, including the National Insurance Commission (NAICOM) and the Securities and Exchange Commission (SEC) are being engaged on this matter.

“In line with Rule 17.5 of the Rulebook of the Exchange 2015, FBN Holdings Plc hereby notifies the market that, in line with the group’s strategic objectives, the company has commenced discussions with Sanlam (PTY) Limited (owners of the 35 percent equity of FBN Insurance Limited (FBNI) with a view towards selling its 65 percent holdings to Sanlam.

“We are engaging the regulators on this matter and further announcement will be made as the discussions progress.

“Please direct all enquiries to the Chief Financial Officer, FBN Holdings Plc, Wale Ariyibi,” the statement signed by the company secretary, Seye Kosoko, disclosed.

FBN Insurance is a life insurance business providing coverage for individual and corporate clients. The firm, according to its profile on its website, is the youngest startup insurer in Nigeria with presence in strategic geographical locations across the country, capitalizing on its relationship with FBN Holdings Plc.

On its part, Sanlam (Pty) Limited operates as an investment management firm. The company, which is based in South Africa, offers portfolio management and advisory services to individuals, institutions, trusts, private funds, charitable organizations, and investment companies.

Sanlem manages over R400 billion in assets under management and offers a wide range of investment capabilities across active management, alternative investments, index tracking, multi-management and international investments.