NCBA Group PLC announced Monday its intent to fully acquire AIG Kenya Insurance Company Limited in a deal that would significantly expand NCBA’s presence in the insurance market across multiple African countries.
The landmark acquisition of the over 50-year-old AIG Kenya, which has a strong reputation for offering sophisticated insurance products to corporations, small businesses and individuals, would make NCBA the third largest banking group in East Africa, the company said.
NCBA, which was formed in 2019 from a merger between NIC Group and CBA Group, currently serves over 63 million customers across Kenya, Uganda, Tanzania and Rwanda through a network of 107 branches.
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John Gachora, Managing Director of NCBA Group, said in a statement that insurance is a growing need for the company’s customer base and acquiring AIG Kenya will help NCBA accelerate its goal of becoming a universal bank that provides a full suite of financial services.
“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,” Gachora said.
NCBA has held a minority stake in AIG Kenya for over 18 years. Gachora said the company has been impressed with AIG Kenya’s steady revenue growth, management expertise and commitment to customer service.
Acquiring AIG Kenya and its regional scale would allow NCBA to further grow its customer base in its existing East African markets, Gachora added.
AIG Kenya serves customers in Kenya as well as Uganda, Tanzania and Rwanda.
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Stella Njunge, CEO of AIG Kenya, said the deal “represents an opportunity to continue to build on AIG Kenya’s solid platform.”
She said combining NCBA’s customer-focused banking products with AIG Kenya’s insurance offerings and NCBA’s digital technology would allow customers seamless access to a wider array of financial services.
The acquisition is subject to due diligence, board approvals from both companies and regulatory approval. But Gachora expressed confidence NCBA is ready to expand insurance penetration across Kenya and the region.
“We are excited to bring the full muscle of NCBA’s capabilities to continue inspiring the growth of our customers while protecting their dreams,” he said. “Through our legacy of innovation we are well positioned to catalyze the deeper market penetration of insurance in Kenya and the region.”
