Hollard International, the largest privately-owned insurance group in South Africa, is set to expand its East African presence through the acquisition of a significant interest in Apollo Investments Limited, the holding company of Kenya-based insurer APA Insurance.
The deal, was finalized on October 31, 2023, and is subject to regulatory approvals.
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For APA Insurance, the partnership with Hollard International presents a significant opportunity for growth and market expansion.
According to Ashok Shah, Group CEO of Apollo Investments Limited, “It’s an exciting time for APA because the Hollard International partnership will open new doors and new avenues of growth for our business. We’ll have access to substantial new expertise in classes of business such as Motor, Engineering, Marine, and other specialist lines of insurance – which we believe will open up a number of profitable business opportunities.”
He further emphasized the partnership’s broader impact, stating, “In addition to expanding our operations in Kenya, this venture will also enable us to strengthen our foothold in Uganda and Tanzania. Moreover, it positions us favorably to seize opportunities in the Ethiopian market once it becomes accessible,”
The insurance group’s latest move into the East African market represents a strategic expansion, complementing its existing operations in Southern and West Africa. It also positions Hollard International as the second international investor in the Kenyan group, following Swiss Re’s stake acquisition in 2014.
Pravin Kalpagé, CEO of Hollard International, hailed the transaction stating “Hollard International has been looking for an East African partner for some time, and APA ticked so many boxes – it has an established track record, an impressive value proposition with strong broker and customer relationships, and it shares our values around community, reliability, and customer-centricity. All these elements resonated strongly with us.”
Kalpagé committed to bringing Hollard International’s model of “impact beyond insurance” to the East African market.
The model as demonstrated in Mozambique and Ghana, involves developing risk-mitigation insurance products to protect vulnerable groups and underserved markets from extreme weather events and other risks.
“This focus on being a catalyst for social impact in Africa is in line with Hollard’s business purpose, which is to enable more people to create and secure a better future,” Said the CEO
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According to Deloitte’s East Africa Insurance report for 2023 the outlook of the insurance business in the East African region remains positive in the long-term but with risks in the short and medium term.
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