NCBA Group PLC (“NCBA”), today announced its intention to acquire 100% of AIG Kenya Insurance Company Limited (“AIG Kenya”).
If concluded, the acquisition of the over 50 year old insurance business, which has a heralded market reputation for offering a sophisticated general insurance proposition to Corporates, SMEs and individuals would be a landmark transaction.
NCBA which was formed out of a merger between NIC Group and CBA Group in 2019 has over the last 4 years grown to become the 3rd largest banking Group in East Africa serving over 63 million customers and with a network of 107 branches.
Speaking on the rationale for the transaction, NCBA Group Managing Director John Gachora said, “Insurance is increasingly becoming a basic financial need for the type of customer that NCBA serves. We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs.”
AIG Kenya serves customers across the East Africa region. NCBA serves customers across 4 countries in East Africa – Kenya, Uganda, Tanzania and Rwanda. As a regional banking Group, NCBA is poised to take advantage of AIG Kenya’s breadth and scale to further entrench itself in the markets in which it operates.
He added, “We have held a minority shareholding in AIG Kenya for over 18 years and have been impressed by the steady revenue growth of the business, the expertise of the management team and the customer centric spirit that is at the heart of its long-standing customer relationships.”
Stella Njunge, CEO of AIG Kenya commented, “The announcement of intent by NCBA and AIG is an exciting development as it represents an opportunity to continue to build on AIG Kenya’s solid platform. Through a combination of NCBA’s customer centric product offering and their cutting-edge technology solutions, customers will be able to access a variety of insurance products and services, seamlessly.”
The execution of the transaction is subject to necessary due diligence, approvals from the Boards of NCBA, AIG Kenya, AIG Group and the requisite banking, insurance and other regulatory authorities.
In conclusion John Gachora said, “We are excited to bring the full muscle of NCBA’s capabilities to continue inspiring the growth of our customers while protecting their dreams. Through our legacy of innovation we are well positioned to catalyze the deeper market penetration of insurance in Kenya and the region.”