FBN Life Assurance acquires majority equity interest in Oasis Insurance

FBN Holdings Plc is pleased to announce that its subsidiary, FBN Life Assurance Limited (“FBN Life” or “the Company”), has acquired 4,630,595,326 ordinary shares of 50kobo each, representing 71.2% of the total issued ordinary share capital of Oasis Insurance Plc (“Oasis”).

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 and the selling shareholders as well as the requisite regulatory approvals from the National Insurance Commission, Securities & Exchange Commission and The Nigerian Stock Exchange.

FBN Life’s key strategic rationale for the acquisition of Oasis Insurance is to diversify into general insurance service offerings. FBN Life plans to complement its existing life assurance business with a range of general insurance products as part of the strategic plan to improve insurance penetration in Nigeria.

Oasis is a general insurance company in Nigeria, incorporated as a private company in November 1992. The company 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 is licensed to carry on non-life insurance business in Nigeria, spanning fire, general accident, motor, marine, aviation, oil & gas, bond and engineering all- risk policies. Oasis currently operates from 13 branches spread across Nigeria and has a considerable network of brokers and agents.

FBN Life Assurance is a limited liability company licensed to carry on life assurance business in Nigeria. The Company is jointly owned by FBN Holdings Plc and the Sanlam Emerging Markets (“Sanlam EM”), one of the largest financial institutions in South Africa. Sanlam EM, a part of Sanlam Group, is one of Africa’s foremost insurance providers, with over nine decades of experience managing life insurance businesses in a number of Sub Saharan African countries as well as Europe, Asia and the United States. Sanlam EM provides technical implementation assistance and ongoing management support to the Company’s operations. FBN Life commenced business on 1 September 2010.

The CEO, FBN Holdings, Mr. Bello Maccido, while commenting said, “we 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. With 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 FirstBank and FBN Life’s existing distribution infrastructure”.

Commenting on the acquisition, valentine ojumah, Managing Director / Chief Executive Officer of FBN life said, “We are delighted to formally announce our acquisition of Oasis Insurance Plc. Having received regulatory approvals from both the Securities and Exchange Commission and the National Insurance Commission, FBN Life Assurance Limited has set the stage for its emergence as a dominant player in the insurance industry.

“The proposed acquisition will not violate any antitrust laws in the insurance sector in Nigeria and it is expected that the business combination will enhance both efficiency and profitability, as FBN Life will be expanding its portfolio of services into the general insurance business while leveraging on FirstBank’s national footprint. Upon completion of the Transaction, we shall be absorbing the share capital of Oasis into that of our listed entity, thereby minimising the potential impact on market capitalisation on the Nigerian Stock Exchange.

“With the support of management and the board of directors of both institutions, we intend to complete the transaction and integration before the end of the 2nd quarter in 2014”.