Monday 30 September 2013

First Bank keeps hope alive on floating general insurance business


Chuks Udo Okonta

First Bank of Nigeria Plc having successfully established life insurance business with Sanlam Emerging Markets of South Africa, said it is not going back on the resolve to float a general business arm, Inspen can authoritatively reveal.

Investigations revealed that the Bank Group will soon make its position on the establishment of the underwriting firm public.

A source who pleaded not to be named said the group has been putting together necessary requirements for smooth take off of the firm, adding that the challenges encountered is being tackled.

He said: "We are still working on it; the delay is due to some issues, which are being tackled. We will make a formal announcement. At the moment, we can't say much for we are bound by some level of confidentiality, when we get to that stage we will make a formal announcement."

FBN Life, a joint venture between First Bank of Nigeria Plc and Sanlam Emerging Markets of South Africa, which was licensed to transact life insurance business in Nigeria, officially commenced operations September 1, 2010.

In the joint venture, First Bank of Nigeria Plc., Nigeria’s largest financial institution owns 65 per cent of FBN Life, with Sanlam owns 35 per cent.

Managing Director, First Bank of Nigeria Life Assurance Limited, Val Ojumah, had last year said: "We believe that by the middle of this year we would have acquired a non-life license either by buying an existing non-life company or by getting a fresh license. We are approaching the issue on both hands."


 

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