Four months after AllNews reported that Stanbic IBTC plans to enter the insurance market with the establishment of new subsidiary, Stanbic IBTC has received approval needed to float the insurance company. The inroad into insurance business by Stanbic IBTC comes amid Nigerian banks applying to enter non-core banking ventures.
AllNews gathered from a statement obtained that the insurance company will be named Stanbic IBTC Insurance Limited. The lender recieved required regulatory approvals, including the license from the National Insurance Commission and the Central Bank of Nigeria (CBN).
Stanbic IBTC had hinted that it will not be going into any merger with existing insurance companies to float its own outfit, rather, Stanbic IBTC Insurance Limited will be wholly-owned. The Stanbic IBTC Insurance will operate as a Life Insurance subsidiary.
"Stanbic IBTC Holdings PLC, is pleased to announce that it has obtained all required Regulatory Approvals as well as a License from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary to be known and referred to as Stanbic IBTC Insurance Limited (“SIIL”).
"The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions providerin Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business," the statement reads.
Meanwhile, several banks have been applying for approval to also establish other businesses aside from normal banking operation in order to take advantage of new opportunities within the financial industry and outside the banking industry. GTBank and Sterling Bank are some of the banks requesting for the CBN's approval.