Insurance

Sanlam pays N25bn for FBNInsurance

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Chuks Udo Okonta

Nigeria’s FBN Holdings Plc said it sold FBNInsurance Limited to Sanlam for N25 billion ($66 million) and had invested the proceeds as equity into its lending business to boost the bank’s capital ratio.

FBN Holdings Chief Executive Officer Urum Kalu Eke, who said this added that the group wanted to focus on improving shareholder value with the divestment from its life insurance firm, FBN Insurance, and boost the capital position of its commercial banking unit, First Bank to 16.53 per cent as of June. The regulatory minimum is 15 per cent for local lenders with international licences.

South Africa’s largest insurer Sanlam SLMJ.J said it bought out the remaining 65 per cent stake in Nigerian insurance business FBNInsurance Limited it did not already own from First Bank FBNH.LG, deepening its presence in the West African country.

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