Keystone Bank Limited is seeking regulatory approval to sell its 66.54% stake in KBL Insurance Limited to Bethel V Limited, a newly incorporated investment vehicle established by insurance and investment professionals.
The proposed acquisition is subject to the approval of the Federal Competition and Consumer Protection Commission (FCCPC), as the transaction will result in a change of control of KBL Insurance.
According to the acquisition notice seen by Nairametrics, Bethel V Limited was incorporated in January 2026 and has among its principal objectives investment activities, business acquisitions, recapitalisation activities and investment and financial management consultancy in Nigeria.
KBL Insurance, a NAICOM licensed general insurance company and a subsidiary of Keystone bank, is one of the Nigerian insurance firms that scaled the recently concluded recapitalization exercise.
According to the notice, the parties said they have negotiated a Share Purchase Agreement for the transaction, which will be completed after obtaining the necessary regulatory approvals.
Bethel V and Keystone Bank said the transaction is expected to provide an opportunity for the buyer to expand KBL Insurance’s business and contribute to the growth of Nigeria’s insurance industry.
The parties argued that the acquisition would not have a negative effect on employees of the company, stating that the buyer intends to expand the insurer’s operations.
They also maintained that the transaction would not substantially prevent or lessen competition in the general insurance market.
Rather, they said the change in ownership would improve competition among companies operating in Nigeria’s general insurance industry.
The proposed acquisition comes shortly after Nigeria completed a year-long recapitalisation exercise that significantly raised the minimum capital requirements for insurance companies.
The recapitalisation exercise was designed to strengthen insurers’ financial capacity and improve their ability to underwrite larger risks, while also encouraging fresh investment and strategic transactions within the sector.
While the insurance industry recapitalization has been concluded, controversies continue to trail the exercise with some insurers, now slugging it out with the regulator in court.
The companies also challenged a directive requiring existing insurance operators to transfer their entire capital injection funds into an escrow account at the Central Bank of Nigeria (CBN).
