NCBA Group has announced the completion of the acquisition of 66.67 percent of AIG Kenya Insurance Company to take full ownership of the company.
The lender said it has obtained all necessary approvals from the Kenya Competition Commission, the Insurance Regulatory Authority and the Central Bank of Kenya.
The insurance company is a subsidiary of American International Group (AIG), a conglomerate with a presence in more than 80 countries.
“NCBA Group Plc is pleased to announce that it has completed the acquisition of 66.67 percent of the issued share capital of AIG Kenya Insurance Company Limited (AIG Kenya), a company registered in the Republic of Kenya after obtaining all regulatory and corporate approvals,” NCBA said in a public notice dated July 1.
This acquisition makes AIG Kenya a wholly owned subsidiary of the NCBA Group.
NCBA will benefit from AIG’s client base of multinational corporations, large Kenyan companies, individuals, and small and medium-sized enterprises.
The bank’s acquisition of this company will enable it to provide a wider range of financial services to its customers and benefit from AIG’s experience and capabilities in the insurance field.
Several Kenyan banks have ventured into bancassurance including share insurance through their life and general insurance subsidiaries, such as KCB, National Bank, etc.
NCBA Group recorded a net profit of Sh5.3 billion in the three months to March, a 4.6 percent increase compared to Sh5.1 billion reported during the same period last year.
This increase is due to growth in non-interest income and lower tax expenses during the review period.
NCBA Group operates a network of over 100 branches in five countries – Kenya, Uganda, Tanzania, Rwanda and Cote d’Ivoire.