In order to acquire complete ownership of the insurer, NCBA Group intends to purchase an additional 66.67 percent of AIG Kenya Insurance Company Limited from an American multinational.
The company announced on Monday that its board had approved the planned deal, which, if it goes through, will allow it to seize control of the insurer now held in large part by American International Group (AIG) Inc., a US multinational with operations in more than 80 nations.
Multinational corporations, significant Kenyan companies, small and medium-sized businesses, as well as thousands of individuals, are among AIG Kenya’s clientele. According to John Gachora, managing director at NCBA, “Insurance is increasingly becoming a basic financial need for the type of customer that NCBA serves.”
We think that by combining the physical and digital distribution networks of NCBA with the insurance capabilities of AIG Kenya, we can get closer to our goal of developing a universal bank that can meet all of our client’s financial needs.
AIG Kenya has thousands of people, small and medium-sized businesses, multinational corporations, huge Kenyan businesses, and other clientele that NCBA hopes to reach. John Gachora, managing director at NCBA, stated that insurance is increasingly becoming a fundamental financial need for the kind of clientele that NCBA serves.
We think that by combining NCBA’s physical and digital distribution networks with AIG Kenya’s insurance capabilities, we will hasten our goal of becoming a universal bank that can meet all of our customers’ financial needs.
AIG Kenya, which has been operating in the nation since 1972 and ended last year with Sh3.62 billion in gross written premiums to give it a 2.14 percent market share in general insurance, is a company that NCBA has owned a minority part in for the previous 18 years.
According to the lender’s annual report, it was an associate of AIG Kenya at the end of last year because of its 33.33 percent effective interest in the insurer. From Sh987.3 million a year earlier, NCBA’s stake in AIG Kenya reached Sh1.03 billion last year. Dividend payments from the insurance to the lender increased to Sh90 million in 2022 from Sh40 million.
