South African Insurance group Sanlam becomes the only shareholder in the Nigerian life insurance company FBN Insurance and its subsidiary FBN General Insurance.
The acquisition follows a deal signed between FBN Holding (parent company of FBN Insurance and FBN General Insurance) and Sanlam which grants the South African company the ownership over the 65% stake held by FBN Holding in the two branches.
Before the agreement was signed, Sanlam held 35% in FBN Insurance. The transaction, conducted through Sanlam’s business cluster focused on emerging markets, Sanlam Emerging Markets (SEM), has received all the necessary regulatory approvals.
This confers the ownership of FBN Insurance (Life) and its subsidiary, FBN General Insurance Limited, on Sanlam.
The deal, which was sealed via a Share Purchase Agreement (SPA), took effect from June 1.
Let’s note that FBN Holdings started the process of selling its shares in the capital of FBN Insurance since April 2020. The operation is in line with the development strategy of the Nigerian group. The financial details of this sale have not been disclosed.
The divestment, however, has no impact on FBN Insurance Brokers Limited as it remains a subsidiary of FBN Holdings.