Kenya (Commonwealth Union) _ The AIG Kenya Insurance Company’s all shares and full ownership will be purchased by the Kenyan lender NCBA Group, according to a statement.
In recent years, commercial banks in the country of East Africa have entered the insurance industry to take advantage of the opportunities given by low rates of insurance penetration.
The third-largest lender, NCBA, will purchase the two thirds of AIG shares that it does not already control as part of the merger, which will need regulatory clearance.
According to NCBA Chief Executive John Gachora, the company’s consistent revenue growth satisfied NCBA, which has owned a minority position in AIG Kenya for the past 18 years, and led to the decision to purchase all of the company’s shares.
The NCBA Group thereupon disclosed that, subject to regulatory permissions, the Board of Directors has authorized the beginning of negotiations with AIG Group to purchase its whole investment in AIG Kenya Insurance Company Limited.
Announcing its desire to purchase 100% of AIG Kenya Insurance Company Limited (“AIG Kenya”), NCBA Group PLC said that if successful, the acquisition of the more than 50-year-old insurance company, which is renowned in the industry for providing sophisticated general insurance products to corporations, small and medium-sized businesses, and individuals, would be a watershed event.
In 2019, NIC Group and CBA Group merged to establish NCBA, which has since developed over the last four years to become the third-largest banking group in East Africa, servicing over 63 million customers through a network of 107 locations.
According to NCBA Group Managing Director John Gachora, who spoke about the justification for the deal, insurance is increasingly becoming a fundamental financial need for the kind of clientele that NCBA caters to. He said, “We think that by combining the physical and digital distribution systems of NCBA with the insurance capabilities of AIG Kenya, we will get closer to our goal of developing into a universal bank that can meet all of the financial demands of our clients”.
Customers of AIG Kenya are drawn from all of East Africa. Kenya, Uganda, Tanzania, and Rwanda are among the four nations in East Africa where NCBA provides customer service. AIG Kenya’s size and scope will allow NCBA, a regional banking group, to further establish itself in the countries where it operates.
The declaration of intent between NCBA and AIG, according to Stella Njunge, CEO of AIG Kenya, is an exciting step since it offers the chance to further strengthen the foundation that AIG Kenya has already established. Customers will have easy access to a range of insurance products and services thanks to NCBA’s customer-centric product offering and their cutting-edge technology solutions.
John Gachora went on to say that we are eager to use all of NCBA’s resources to continue motivating our clients’ growth and safeguarding their aspirations. We are in a good position to accelerate the broader market penetration of insurance in Kenya and the surrounding area thanks to our history of innovation.
The Kenyan lender NCBA Group plans to use mobile and digital banking to penetrate eight African nations. In a recent interview, NCBA Group CEO John Gachora stated that the company has partnered with a financial institution in Ghana, where it is currently seeking a license to start conducting banking.
Gachora stated that the technology is being developed and should be available soon. It is planned to launch with our partners in Ghana in the middle of next year. Ethiopia, the second-most populous country in Africa, is opening up its financial sector to foreign investors, and NCBA intends to enter these markets.
