NCBA Group PLC has announced 100% acquisition of AIG Kenya Insurance Company Limited (AIG Kenya) as a strategy to strengthen its position in the financial services industry. NCBA has had a minority shareholding in AIG Kenya for over 18 years.
AIG Kenya established operations in Kenya in 1972 and is focused on providing general insurance with branches in Nairobi and Mombasa and two satellite offices in the central business district. Its clientele includes multinationals, top Kenyan businesses, small and middle-sized enterprises, and thousands of individuals.
Commenting on the development, NCBA’s Group Managing Director, John Gachora, said; “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. 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 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.”
With the acquisition, NCBA is set to tap into a sizeable insurance industry in Kenya valued at Ksh. 309 Billion which continues to grow at a CAGR of 10% even amidst ongoing macro-economic challenges.
NCBA Group is a banking group that provides a range of financial products and services to corporate, institutional, SME and consumer banking customers. It operates a network of more than 100 branches in five countries including Kenya, Uganda, Tanzania, Rwanda, and Ivory Coast. Its subsidiaries include NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Kenya, NCBA Bank Uganda, NCBA Bank Tanzania and NCBA Bank Rwanda.