NCBA Group PLC has continued to cement its position in the financial services sector by completing the 100% acquisition of AIG Kenya Insurance Company Limited, after holding a minority share in the insurance company for over 18 years.
This strategic development marks a milestone for NCBA, as it further solidifies its presence and expertise in the insurance sector. By acquiring AIG Kenya, the group brings a revered insurance business with a legacy spanning over 50 years, distinguished for its comprehensive general insurance solutions catering to corporates, SMEs, and individual clients.
It also presents a unique opportunity for synergy and growth as by harnessing the collective resources, expertise, and market knowledge of both entities, NCBA is poised to leverage AIG Kenya’s established brand reputation and extensive experience to enhance its insurance portfolio and cater to a wider customer base.
According to John Gachora, NCBA’s Group Managing Director, the group is excited to welcome AIG Kenya to the NCBA family.
“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,” he said.
Kenya’s insurance industry is a vibrant and evolving sector. Currently valued at Sh309 billion, the sector continues to exhibit resilience and growth, even amid prevailing macro-economic challenges. In fact, with a compound annual growth rate (CAGR) of 10%, the industry presents immense potential for expansion and innovation.
By integrating AIG Kenya into its robust business framework, NCBA is well-positioned to capitalize on this growth trajectory and offer a diverse range of insurance products and services tailored to meet the evolving needs of Kenyan businesses and individuals.
In accordance to Stella Njunge, CEO of AIG Kenya, 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,” she said.
NCBA now finds itself in a good position as it is well-equipped to enhance its value proposition, deepen customer relationships, and solidify its position as a leading player in the financial services industry.
The acquisition of AIG Kenya adds to NCBA’s expanding portfolio of subsidiaries, which includes NCBA Investment Bank, NCBA Leasing LLP, NCBA Bancassurance Intermediary Ltd, NCBA Bank Uganda, NCBA Bank Tanzania, and NCBA Bank Rwanda.
This diversified business ecosystem enables NCBA to deliver holistic financial solutions across various markets.
