NCBA Group PLC (NCBA) has completed its 100% acquisition of AIG Kenya Insurance Company Limited (AIG Kenya), solidifying its position in the East African financial services sector.
The combined power of NCBA’s distribution network and AIG Kenya’s insurance capabilities unlocks opportunities to grow the insurance market in Kenya and East Africa.
Transaction Details
NCBA held a minority stake in AIG Kenya for over 18 years, recognizing its strong reputation and consistent revenue growth. The acquisition allows NCBA to tap into Kenya’s Ksh 309 billion insurance market, experiencing a 10% annual growth rate.
John Gachora, NCBA Group Managing Director, says the acquisition aligns with NCBA’s goal of becoming a universal bank, addressing all customer financial needs.
“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.”
Stella Njunge, CEO of AIG Kenya, emphasises the value of NCBA’s resources and network in enhancing AIG Kenya’s capabilities and offerings.
AIG Kenya operates across East Africa, complementing NCBA’s presence in Kenya, Uganda, Tanzania, and Rwanda.
NCBA announced its intention to acquire AIG Kenya on September 25, 2023. The deal is expected to generate at least Ksh 2 billion for AIG, based on NCBA’s prior valuation of its existing stake in AIG Kenya.
