Goddy Egene
FBN Holdings Plc has divested its 65 per
cent equity in FBN Insurance Limited to Salam (PTY) Limited, which used
to hold 35 per cent stake in the insurance firm.
The financial conglomerate had in April
announced its plan to divest, saying it is in line with
FBN Holdings’
“strategic objectives.”
However, in a notification to the Nigerian Stock Exchange (NSE), FBN Holdings Plc said it had completed the divestment.
“The boards of directors of FBN Holdings
and Sanlam Emerging Markets (Proprietary) wish to announce the
completion of the sale and transfer of FBN Holdings’ 65 per cent
shareholding in FBN Insurance Limited to Sanlam. This effectively
confers full ownership of FBN Insurance and its subsidiary, FBN General
Insurance Limited on Sanlam forthwith, following receipt of all relevant
regulatory approvals,” the group said.
Commenting on the divestment, Group
Managing Director, FBN Holdings Plc, UK Eke, said “The divestment is in
line with the group’s medium to long term strategic objectives. This
will ultimately improve our shareholders’ wellbeing and deliver greater
value to all the stakeholders.
“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.”
Also commenting, Chief Executive
Officer, Sanlam Emerging Markets (Proprietary) Limited, Chief Executive
Officer, Mr. Heinie Werth, said: “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.”
According to FBN Holdings, this
divestment has no impact on FBN Insurance Brokers Limited as it remains a
wholly owned subsidiary of the group.
It said 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.
The insurance business recorded gross
premium written of N44.9 billion in 2019, up by 46.8 per cent as against
N30.6 billion. PBT rose to N8.8 billion, showing an increase of 23 per
cent from N6.8 billion.
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