Business & Money
NCBA Group PLC Finalizes Complete Acquisition of AIG Kenya
Through this acquisition, NCBA targets the Kenyan insurance industry, valued at KES 309 billion and growing at a 10% annual rate despite macroeconomic challenges
: NCBA Finalizes Acquisition to Tap into Kenya’s KES 309 Billion Insurance Industry, Growing at 10% CAGR Despite Macroeconomic Challenges
By Charles Wachira
NCBA Group PLC (“NCBA”) announced on July 1 that it had successfully completed its 100% acquisition of AIG Kenya Insurance Company Limited (“AIG Kenya”), further solidifying its presence in the financial services industry. This acquisition adds to NCBA’s subsidiaries portfolio, including NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Uganda, NCBA Bank Tanzania, and NCBA Bank Rwanda.
NCBA had maintained a minority shareholding in AIG Kenya for over 18 years. This strategic acquisition brings into the fold a well-established insurance business with a 50-year legacy and a strong reputation for providing comprehensive general insurance solutions to corporates, SMEs, and individuals.
John Gachora, NCBA’s Group Managing Director, expressed enthusiasm about the acquisition, stating, “We are excited to welcome AIG Kenya to the NCBA family. This acquisition will enable our customers to access all their financial products under one roof conveniently. As insurance becomes a fundamental financial need for our customers, integrating NCBA’s physical and digital distribution platforms with AIG Kenya’s insurance capabilities will create opportunities to drive deeper insurance market penetration in Kenya and the East Africa region.”
Stella Njunge, CEO of AIG Kenya, commented on the acquisition, noting, “This 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.”
With this full acquisition, NCBA aims to tap into the substantial Kenyan insurance industry, which is valued at KES 309 billion and continues to grow at a compound annual growth rate (CAGR) of 10% despite ongoing macroeconomic challenges.
Keywords:NCBA Group Acquisition: AIG Kenya: Insurance Market Expansion: Financial Services Integration: Kenya Insurance Industry Growth