Keystone Bank seeks approval to sell 66.54% KBL Insurance stake

Keystone Bank is seeking regulatory approval to sell its majority stake of 66.54% in KBL Insurance Limited to a new investment firm called Bethel V Limited. The proposed sale is contingent upon the Federal Competition and Consumer Protection Commission's (FCCPC) approval, as the transaction would result in a change of control for KBL Insurance.

Bethel V Limited, newly established in January 2026, aims to invest, acquire businesses, recapitalize, and provide consultancy services in Nigeria's insurance sector. The Share Purchase Agreement for this transaction is expected to be finalized after obtaining the necessary regulatory approvals. Both parties believe that the acquisition will enable Bethel V to expand KBL Insurance’s operations, contributing to the growth of Nigeria's insurance industry.

The transaction is also projected to enhance competition within the general insurance market, rather than diminish it. This acquisition comes shortly after Nigeria concluded a year-long recapitalization exercise aimed at increasing minimum capital requirements for insurance companies, thereby boosting their financial capacity and encouraging fresh investment and strategic transactions.

Despite the completion of the recapitalization, the insurance industry has not been without controversy, with some insurers challenging the directive requiring them to transfer their capital injection funds into an escrow account at the Central Bank of Nigeria (CBN).