First Bank of Nigeria (FBN) Life Assurance, a subsidiary of FBN Holding and Sanlam of South Africa has acquired 71.2 percent of NSE-listed Oasis Insurance, as it seeks to deepen its foray into the general insurance business.

“The formal acquisition of Oasis Insurance provides us with an entry point into the general insurance sector of the Nigerian Insurance Industry,” said FBN Holdings CEO, Mr. Bello Maccido.

Oasis Insurance is a Nigerian-based general insurance company with services including general accident, motor, marine, aviation, oil & gas, bond and engineering all-risk policies.

FBN bought 4.6 billion shares at 50kobo each after it got approval from FBN Holding’s board, Oasis shareholders and other relevant stakeholders and authorities.

FBN Life hopes to leverage this acquisition to provide a more robust insurance offering and deepen its overall market reach as general insurance business contributes about 80 percent of total insurance premiums in Nigeria.

Nigeria, which accounts for 47 percent of West Africa’s population, has an evolving multi-trillion Naira risk management industry.

According to a report, Nigerian premiums have been growing at an average of 18 percent yearly in the last 5 years.

Its acquisition also complements Sanlam’s existing life insurance interest in Nigeria and will provide a more diversified financial services offering to FBN Life’s existing client base,  added Heinie Werth,  Sanlam Emerging Markets (SEM) Chief Executive. 

Established in 2010, FBN life is the first Nigerian insurance company to have deployed insurance policies via mobile network through a partnership deal with Airtel.

Its partner, Sanlam Emerging Markets (SEM), is one of the largest financial institutions in South Africa with over 90 years experience in the life insurance businesses. It operates interests in the United States, Europe, Asia, and 11 African countries.