Sanlam takes full ownership of FBN Insurance in Nigeria
Sanlam is pleased to announce that it has acquired the remaining stake in the Nigerian insurance business FBN Insurance from its partner, FBN Holdings Plc (FBNH). This gives the Group 100% ownership of FBN Insurance Limited (FBNI) and its subsidiary, FBN General Insurance Limited.
The transaction, conducted through Sanlam’s business cluster focused on emerging markets, Sanlam Emerging Markets (SEM), has received all the necessary regulatory approvals. FBN Holdings Plc held 65% of FBN Insurance, while Sanlam held 35%. The effective date for Sanlam taking full control of FBN Insurance will be 1 June 2020.
“This transaction is in line with our business strategy to deepen our presence in our existing markets and highlights and enhances our long-standing commitment to the Nigerian market. 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. 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. The African continent as a whole remains important and integral part of Sanlam’s growth,” said SEM’s Chief Executive Officer, Mr Heinie Werth.
Commenting on the divestment, UK Eke, MFR, Group Managing Director, FBN Holdings Plc 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”.
FBN Insurance was started as a JV between Sanlam and FBN Holdings as a life insurer in 2011 and after a successful growth trajectory, expanded into general insurance by establishing FBN General Insurance in 2015.
“FBN is a well-established, 120-year-old company with an impeccable reputation in the Nigerian market and the financial services industry as a whole. Over the years we have enjoyed a mutually beneficial partnership with FBNH, and we will continue to cooperate with them in the future. FBNI has grown into a significant insurance player in the market with a strong management team and we look forward to continuing to deliver excellent financial services and value to our clients and stakeholders,” Mr Werth concluded.
Issued by Sanlam Group Communications
Sanlam is a pan-African financial services company listed on the Johannesburg, Namibian and A2X stock exchanges. Through its five business clusters – Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Investment Group, Sanlam Corporate and Santam – the business provides comprehensive and bespoke financial solutions to institutional clients and retail customers across all market segments. Sanlam’s areas of expertise include life and general insurance, financial planning, retirement, investments and wealth management.
Established in 1918 as a life insurance company, Sanlam has evolved into the largest non-banking financial services group in Africa through its diversification strategy
Sanlam owns stakes in financial services companies in Namibia, Botswana, Swaziland, Lesotho, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya, Burundi and Nigeria. After concluding the largest insurance transaction on the continent in 2018, Sanlam expanded to Morocco, Angola, Algeria, Tunisia, Ghana, Niger, Mali, Senegal, Guinea, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of the Congo and Madagascar.
Sanlam also has a business presence in India, Malaysia and the United Kingdom as well as Australia, Lebanon, the Philippines, and the United States of America.