Keystone Bank Limited is seeking regulatory approval to sell its 66.54 percent stake in KBL Insurance Limited to Bethel V Limited, a newly incorporated investment vehicle established by insurance and investment professionals.

The proposed acquisition will result in a change of control at KBL Insurance and is therefore subject to approval by the Federal Competition and Consumer Protection Commission (FCCPC).

According to the acquisition notice, Bethel V was incorporated in January 2026. Its principal activities include investments, business acquisitions, recapitalisation, and investment and financial management consultancy in Nigeria.

Keystone Bank agrees to sell KBL insurance

KBL Insurance, a general insurer licensed by the National Insurance Commission (NAICOM), is a subsidiary of Keystone Bank and was among the insurance companies that completed the recently concluded recapitalisation exercise.

The parties have negotiated a Share Purchase Agreement for the transaction, which will be completed after the required regulatory approvals are obtained. The FCCPC said the deal falls within its regulatory remit because it would transfer control of KBL Insurance from Keystone Bank to Bethel V.

The commission said the proposed acquisition is intended to give the buyer an opportunity to expand KBL Insurance and contribute to the growth of Nigeria’s insurance industry. The parties also said the transaction would support Nigeria’s goal of building a $1 trillion economy.

Bethel V and Keystone Bank said the change in ownership is not expected to negatively affect KBL Insurance employees. The buyer intends to expand the insurer’s operations, according to the notice.

The parties also said the acquisition would not substantially prevent or lessen competition in Nigeria’s general insurance market. Instead, they expect the change in ownership to strengthen competition among insurers operating in the country.

Nigeria sets higher capital requirements for insurers

The proposed sale comes after Nigeria completed a year-long recapitalisation exercise that raised the minimum capital requirements for insurance companies.

Under the Nigerian Insurance Industry Reform Act 2025, non-life insurers were required to raise their minimum capital from N3 billion ($2.26 million) to N15 billion ($11.3 million), while life insurers were required to increase theirs from N2 billion ($1.5 million) to N10 billion ($7.54 million).

Reinsurers were required to raise their minimum capital from N10 billion ($7.54 million) to N35 billion ($26.4 million). NAICOM said in August that 43 insurance and reinsurance companies had initially met the new capital requirements. Seven additional insurers were later cleared, bringing the total number of compliant companies to 50.