FBN Holdings Plc has divested its 65 per cent equity in FBN Insurance Limited to Sanlam (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.