FBN Insurance Sold for Greater Value to Shareholders—FBN Holdings

FBNInsurance Limited

By Dipo Olowookere

**Says Sale Won’t Affect FBN Insurance Brokers Limited

The Group Managing Director of FBN Holdings Plc, Mr Kalu Eke, has disclosed that the sale of the insurance business of the group, FBN Insurance Limited, was to deliver greater value to shareholders of the financial powerhouse in Nigeria.

FBN Holdings, in a deal which became effective on June 1, 2020, transferred ownership of the company to Sanlam Emerging Markets (Proprietary) Limited.

Before the transaction, the Nigerian firm controlled 65 percent equity in the insurer, while Sanlam had the other 35 percent share.

But Sanlam has acquired the 65 percent belonging to FBN Holdings under a Share Purchase Agreement (SPA) after receiving approvals from all the relevant regulatory agencies involved in the deal.

For Mr Eke, the divestment was done “in line with the group’s medium to long term strategic objectives.”

According to him, “This will ultimately improve our shareholders’ well-being and deliver greater value to all the stakeholders.”

It was stressed that the sale of FBN Insurance to Sanlam has no impact on FBN Insurance Brokers Limited, which still remains a wholly owned subsidiary of FBN Holdings Plc.

Since its establishment 20 years ago, the firm has continued to provide bespoke Insurance Broking and Advisory Services to the FBN Holdings Group and its customers.

Reacting to the transaction, the CEO of Sanlam, Mr Heinie Werth, stated that, “Over the years, we have enjoyed a mutually beneficial partnership with FBNH, and we will continue to cooperate with them in the future.”

“Sanlam exercised its pre-emptive right to acquire the remaining shareholding of FBNI and in line with our partnership philosophy that underpins our business model, we will introduce local shareholding at an appropriate time in the future,” he added.

“This transaction is evidence of our belief and confidence in the value and future of the business, as well as the skilled management team and staff.

“Moreover, we are committed to Nigeria and view it as a key market on the continent,” Mr Werth assured.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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