Kenyas NCBA Group, the fourth-biggest bank by market capitalisation, has acquired insurer AIG Kenya from American International Group Inc for an undisclosed amount.
For the past 18 years, NCBA Group , Kenyas fourth-biggest bank by market capitalisation, has held a minority share in the Kenyan subsidiary of insurer American International Group (AIG) Inc. Now, the lender has a bigger share of the pie.
NCBA has acquired the insurer for an undisclosed amount. The lender finalised a 66.67% buyout deal that will give it full control of AIG Kenya, which controls 2.14% of Kenyas insurance market, it said in a statement.
The acquisition puts the lender on track to its ambitious expansion drive to become a universal bank that provides customers with all their financial needs, managing director John Gachoras said.
With the buyout, NCBA is eyeing a larger share of Kenyas $2.3 billion (KES300 billion) insurance industry. The acquisition comes at a time when Kenyan lenders have been moving into insurance to take up opportunities presented by low insurance penetration. Equity Group, the biggest bank in Kenya, announced in March that it will enter the general and health insurance market this month, following a successful launch of life insurance in 2022.
