The NCBA Group, the fourth-biggest bank by market capitalisation, has acquired fully the insurer AIG Kenya from American International Group following receipt of all regulatory and corporate approvals.
NCBA held a minority share in AIG Kenya for the past 18 years.
The bank finalised a 66.67% buyout deal that will make AIG Kenya a wholly-owned subsidiary of the group. AIG Kenya has a 2.14% share of Kenya’s insurance market, the bank said in a statement on 1 July. The acquisition price is undisclosed. The deal was announced in September 2023.
The buyout will enable the bank’s customers to conveniently access all financial products under one roof, NCBA managing director Mr John Gachoras said.
“With insurance increasingly becoming a basic financial need for the type of customers we serve, an ecosystem of NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities will unlock opportunities to catalyze deeper insurance market penetration in Kenya and the East Africa region,” he said.
With the buyout, NCBA is eyeing a larger share of Kenya’s $2.3bn 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.
For instance, 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.