NCBA Group PLC has announced the completion of its 100 percent acquisition of AIG Kenya Insurance Company Limited. At the same time, NCBA Group has launched its new insurance arm dubbed NCBA Insurance following the successful completion.
“We are excited to welcome AIG Kenya to the NCBA family, and this acquisition will enable our customers to conveniently access all their financial products under one roof,” said NCBA’s Group Managing Director, John Gachora.
The acquisition follows the strategic move by the bank to up its stake from 30 percent to 100 percent in AIG. Previously, the NCBA had been holding a minority stake in AIG Kenya for over 18 years.
It now brings into NCBA an over 50-year-old insurance business, with a heralded market reputation for offering a sophisticated general insurance proposition to Corporates, SMEs, and individuals.
The NCBA Insurance Company joins six other NCBA Group PLC subsidiaries which include NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Uganda, NCBA Bank Tanzania and NCBA Bank Rwanda
NCBA’s Sh2 billion acquisition of AIG to change insurance landscape in Kenya
“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,” said Mr. Gachora.
He noted that already, NCBA Insurance is one of Kenya’s top insurers with over six billion gross written premiums in its books.
“NCBA is among Kenya’s top 10 most valuable brands, delivering the best banking experience and driving sustainable finance,” said Mr. Gachora. “NCBA Insurance will now build on AIG’s legacy, fast claims, top tier customer service, and reliability.”
With the full acquisition, NCBA is set to tap into a sizeable insurance industry in Kenya valued at Sh309 Billion which continues to grow at a CAGR of 10 percent even amidst ongoing macro-economic challenges.
Stella Njunge, CEO of AIG Kenya commented, “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.”
