First Assurance Investments has completed its acquisition of Absa Group’s insurance business in Kenya, taking full control of two insurance companies in a transaction that marks the lender’s exit from the country’s insurance market.
The acquisition, which gives the investment firm ownership of First Assurance Company and Absa Life Assurance Kenya, was finalised after regulatory approvals and the fulfilment of customary closing conditions.
The buyer is majority-owned by Kenyan politician Musalia Mudavadi, whose investment interests in the insurance business date back more than a decade.
Absa insurance subsidiaries rebrand after acquisition
Following the takeover, the two insurers will drop the Absa brand as they transition to independent operations under the First Assurance name.
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Absa Life Assurance Kenya will be rebranded First Assurance Life, while First Assurance Company will become First Assurance General.
During a six-month transition period, the companies will use the tagline “Formerly an Absa Group Company” to maintain brand recognition before completing the rebranding process.
The insurers said customers will continue accessing their products and services without disruption.
Existing distribution arrangements with Absa Bank Kenya will remain intact, allowing the companies to maintain their established customer channels despite the change in ownership.
Managing directors Githanji Waiguru and Stephen Lokonyo said the transaction will not affect the companies’ offerings, noting that their products and services will remain unchanged.
First Assurance Investments acquisition price
Although the parties have not officially disclosed the purchase price, Billionaires.Africa reported last month that First Assurance Investments had agreed to pay Sh3 billion for Absa’s 63.32 per cent stake in each insurer.
The reported valuation is below the Sh3.8 billion Absa was expected to seek for the insurance businesses.
The acquisition restores Kenyan ownership of First Assurance after 11 years under Absa and its predecessor, Barclays Africa.
Kenyan investors sold First Assurance to Barclays Africa in 2015 for Sh2.2 billion ($17 million), paving the way for the group’s entry into the local insurance market.
Mudavadi’s ownership links to First Assurance Investments
Mudavadi’s connection to First Assurance Investments is through Syndicate Nominees, which owns 52.5 per cent of the investment firm.
During his parliamentary vetting in 2022, Mudavadi disclosed that Syndicate Nominees belonged to him.
The remaining 47.5 per cent of First Assurance Investments is held by Exclusive Holding, a Mombasa-based investment company.
Lamu Governor Issa Timamy is listed as a director and shareholder of Exclusive Holding, according to regulatory filings and court documents.
Before the acquisition, Mudavadi held an estimated combined interest of approximately 21 per cent in First Assurance, including a 12.35 per cent stake held through Syndicate Nominees.
