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FBN Holdings In Talks With Salam Group To Divest Entire 65% Stake In FBN Insurance

FBN Holdings Plc, the holding company of First Bank of Nigeria and its former subsidiaries, on Wednesday said it is discussing fully divest from its 65% stake in insurance arm, FBN Insurance Business Limited with its partner Sanlam Emerging Markets.
In a regulatory filing with the Nigerian Stock Exchange (NSE), FBN Holdings said at the end of the talks and subject to regulatory approvals, FBN Insurance will become a wholly-owned subsidiary on Salam Group.
The proposed divestment will unlock significant value to leverage the group’s strength in its core business for which it is renowned.
Sanlam Group, with over 100 years of experience and expertise in Insurance, asset management, wealth management, and investments, has been associated with FBN Insurance Plc, a leading Insurance company in Africa, since it was established in 2010.
According to a notice sent to the Nigerian Stock Exchange, signed by the Company Secretary Seye Kosoko, FBN Holdings said the move is in line with the “group’s strategic business decision.”
He added that the parties are currently engaging the various regulators for necessary approvals and that further announcements will be made when the transaction is concluded.
The notification regarding the market-sensitive transaction, the statement added, is in deference to Rule 17.5 of the Rule Book of the Exchange 2015, following which FBN Holdings first notified the market of the development in the directors’ report section of its audited financial statements for the year ended December 31, 2019, released to the Exchange on Monday, April 6, 2020.
FBN Insurance was founded as a life insurer in 2010 with a vision to be Nigeria’s first choice in risk underwriting, wealth preservation, and financial security. Today, the company has grown to become one of the best insurance companies in Nigeria with a subsidiary that undertakes general insurance business offering a broad range of investment and risk underwriting products.
Key extracts of the audited report for the year ended December 31, 2019, showed that FBN Holdings posted a profit before tax of N84 billion, representing a growth of 31% over N64bn recorded in 2018.
Profit after taxation rose by 27% to N74bn in 2019 as against N58bn reported in 2018, following which the board has recommended the sum of N13.64bn as cash dividend for the 2019 financial year, representing a dividend per share of 38 kobo, an increase of 46% over the 2018 payout.
FBN Insurance is known and well respected for its quality of service, integrity, innovation, and professionalism. It was awarded the ‘Best Life Insurance Company in Nigeria’ for four years.

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