FBN Holdings Plc, one of the financial services groups in the country has said the recent acquisition of a non-life risks underwriting company, Oasis Insurance Plc, by one of its subsidiaries, FBN Life Assurance Limited, was exciting deal.
The group said with the successful conclusion of the acquisition, it can now play actively in the non-life segment of the Nigerian insurance industry.
FBN Holdings explained that the transaction was meant to enable the group diversify into general insurance business to complement the groupâ€™s life assurance business with a range of general insurance products as part of its strategic plan to improve insurance penetration in the country.
The Chief Executive Officer of the holding company, Mr. Bello Maccido said he was delighted with the new addition to the group and assured that his organisation would continue to grow its businesses profitably and reinforce its leadership position in the finance industry in the country.
â€œWe are delighted with this new addition to our group; the formal acquisition of Oasis Insurance provides us with an entry point into the general insurance sector of the Nigerian Insurance Industry.
â€œWith this acquisition, FBN Holdings will continue to leverage synergies across the group to grow its businesses profitably and reinforce its leadership position whilst driving the business forward. The new investment will also leverage off the extensive branch network of First Bank and FBN Lifeâ€™s existing distribution infrastructure,â€ Maccido said.
Also commenting on the deal, the Managing Director of FBN Life Assurance Limited, Mr. Val Ojumah,msaid â€œFBN Life Assurance Limited has set the stage for its emergence as a dominant player in the insurance industry.â€
Just recently, FBN Life acquired 4,630,595,326 ordinary shares of 50 kobo each representing 71.2 per cent of the total issued ordinary share capital of Oasis Insurance Plc.
The acquisition was effected through the execution of a share sale and purchase agreement with the majority shareholders of Oasis, following receipt of approvals of the Board of Directors of FBN Life, FBN Holdings Plc, the selling shareholders.
Also, relevant regulatory bodies including the National Insurance Commission (NAICOM), Securities and Exchange Commission (SEC) and The Nigerian Stock Exchange (NSE) have all approved the acquisition.
Incorporated in 1992, Oasis is a general insurance company which became a public limited liability company in November 2004 and was successfully recapitalised in 2006 via an initial public offer and subsequently listed on the Nigerian Stock Exchange in 2007.
The company transacts non-life business including general accident, motor, marine, aviation, oil and gas, bond and engineering all-risk policies from 13 locations across the country.
Jointly owned by Nigeriaâ€™s FBN Holdings Plc and the Sanlam Emerging Markets, one of the largest financial institutions in South Africa, FBN Life Assurance is a limited liability company transacting life assurance business in the country.