An inductive coupler for downhole components. The inductive coupler includes an annular housing having a recess defined by a bottom portion and two opposing side wall portions. At least one side wall portion includes a lip extending toward but not reaching the other side wall portion. A plurality of generally U-shaped MCEI segments, preferably comprised of ferrite, are disposed in the recess and aligned so as to form a circular trough. The coupler further includes a conductor disposed within the circular trough and a polymer filling spaces between the segments, the annular housing and the conductor.