First Bank Dumps Insurance Business

By Tosin Olatokunbo

The management of First Bank Holdings has divested its share from FBN Insurance Limited in what keen watchers in the financial sector said is a signal that things are not really well with the first generation bank.

The holding company for all First Bank investments within and outside the continent, on Wednesday notified the Nigerian Stock Exchange, NSE of its readiness to draw down its 65 per cent shares in the insurance company.

The junior partner, Sanlam Emerging Markets (Sanlam) the owners of 35 per cent equity in FBN Insurance Limited (FBNI), Seye Kosoko, the company’s secretary said has been notified of the decision.

By the formal notice sent to the Exchange, Kosoko said, the junior partner has been put on notice, the company’s decision to dump the huge shares in line with the “Group’s strategic objectives”.

Keen sector watchers informed the magazine that the management may have decided to shut down other subsidiaries and focus on its core business as a lender

The decision to dump one of its core subsidiaries in the country signals a ‘deep-seated problem’ in the parent company, watchers say.

“Whatever constitutes ‘strategic objectives’, FBN Holdings Ltd has just confirmed the suggestions of a raging storm in the Adesola Kazeem Adeduntan -led bank,” Folawari Benson, a financial analyst told the magazine on Thursday.

More details later………………..