NCBA Group has announced the completion of its 100% acquisition of AIG Kenya Insurance Company Limited (AIG Kenya) from its parent company AIG Group, Inc.
- The lender has held a minority shareholding in the insurer for two decades, and did not disclose how much it paid to acquire the rest of the company.
- It announced the acquisition plans last September, and the deal had to get approvals from several regulators.
- AIG Kenya is a 50- year old insurance business, with clientele cutting across multinationals, blue chip companies, small and middle-sized enterprises, and individuals.
NCBA plans to tap into the small but sizable insurance industry valued at KSh 309bn which is growing at a compound annual growth rate of 10% even amidst ongoing macro-economic challenges.
AIG Kenya established operations in 1972 as a subsidiary of the American International Group, Inc (AIG), a conglomerate with a presence in over 80 countries. The multinational had to be bailed out during the 2008 financial crisis, which saw the Federal Reserve assuming a controlling stake before progressively selling its shareholding in the early 2010s.
“With insurance increasingly becoming a basic financial need for the type of customers we serve, an ecosystem of NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities will unlock opportunities to catalyze deeper insurance market penetration in Kenya and the East Africa region,” NCBA Group Managing Director, John Gachora said.
“The acquisition marks a significant milestone in our company’s evolution. NCBA’s resources, expertise, and expansive network will enhance our capabilities, allowing us to offer a broader range of products and services, improve our operational efficiencies, and provide greater value to our customers and partners” Stella Njunge, CEO of AIG Kenya added.
