Proshare Logo
   Market Date: 23-07-2014   
Agriculture All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted Stocks World of Business

First Bank, S/African set up new mega insurance firm

Category: Archives


  Read (2789)
First Bank, S/African set up new mega insurance firm

WEDNESDAY, 19 MAY 2010 01:22 MODESTUS ANAESORONYE


A mega insurance company that would provide life and non-life insurance services is set to berth in the Nigerian insurance market as FBN Insurance Company Limited seals a joint venture deal with Sanlam Limited of South Africa. FBN Insurance which recently secured operational licence from the National Insurance Commission (NAICOM) will start its life insurance business in July this year while the non-life arm will commence next year, BusinessDay can reveal.


Sanlam, a major insurance player in the South African Insurance market, is taking 35 percent equity stake in FBN Insurance Company following a joint venture agreement reached by both organisations. Val Ojuma, managing director, FBN Insurance Brokers Limited, who confirmed the development to BusinessDay said this is a major breakthrough for the First Bank Group.Ojuma who may head the new life company as its managing director said beyond the financial commitment of Salam Limited as shareholders, the company will provide technical support as well as have presence in management team of the company.


He stated that the South African partners have been part of the conceptualisation process and is the view that their partnership will give the company the desired height. Fist Bank Nigeria plc before now had an insurance broking firm, FBN Insurance Brokers Limited, a major player in the insurance broking arena.


Fola Daniel, commissioner for Insurance, told BusinessDay that although the commission has been strict in granting fresh licence for insurance business, it considered the coming of Fist Bank into main stream insurance as an opportunity to grow the insurance market.


Daniel said it took the commission more than three years to arrive at this decision, having considered the situation of the market, the size of First Bank, its track record, spread, human capital availability and the fundamentals of the group.


"We believe that giving First Bank operating licence would deepen the market because it is expected that its outlets spread in the nook and crannies of the country would be used to push insurance products to the larger populace."The commission is eager to see the industry achieve market deepening and grow to our expected target, and that is why we are taking seriously the issue of projecting our Market Development and Restructuring Initiative (MDRI), brain child of the commission which is also focusing on market penetration," Daniel said.


Analysts are excited about the development, stating that although it may not seem logical licensing another insurance company now, with Fist Bank one could envisage a mega firm capable of absorbing fringe players. Sanlam was established in 1918 and is a leading financial services group in South Africa. It demutualised in 1998 and is listed on the JSE Securities Exchange in Johannesburg and on the Namibian Stock Exchange.


On 31 December, 2005 the Group had R353 billion ($2.67 trillion) in assets under management and administration. The Sanlam Group conducts its business through Sanlam Limited, the corporate head office, and four business clusters.


The corporate head office is responsible for the Group's centralised functions which include strategic direction, financial and risk management, group marketing and communications, group human resources and information technology, corporate social investment and general group services. 

(Source:BusinessDay)



Tags: , 



Comment With Your Facebook or Yahoo! ID


Latest news


News on Archives

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Newsletter
Contact Us
Message from CEO
Resources

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
WebTV
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

#1minNews
News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Newsletters
Discussion Forum
Policy

Subscriber Agreement
Privacy Policy
Data Policy
Disclaimer
Copyright Policy
Trademarks
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Training
Legal Support Services
Web/Technology Services
File a Complaint