Britam Holdings is seeking opportunities to enter the massive but underserved insurance market in the Democratic Republic of Congo later this year, reported Bloomberg.
Kenya’s biggest listed insurer by market value with operations in seven African economies is chiefly seeking an acquisition but could establish a greenfield operation, according to CEO Tom Gitogo. It will initially launch life and general insurance products before introducing asset management, he said.
Congo is an attractive market with Africa’s fourth-biggest population of about 100m people and insurance penetration is below the continent’s average of 2.6% and a global average of 7.4% as calculated by the global professional services firm Deloitte.
Congo’s national investment promotion agency estimates the market could be as big as $5bn. The extractive industry alone is valued at about $1bn, Mr Alain Kaninda Ngalula, the head of the nation’s insurance regulator, known as Arca, told Geopolis in February. President Felix Tshisekedi wants major economic players including mining companies to pay premiums inside Congo and not buy cover outside the country.
Congo liberalised its insurance industry about a decade ago, enabling competition to the state-owned monopoly Société National d’Assurances. Closely held Mayfair Insurance expanded to Congo in 2020, according to its website. Other Kenya-based insurers keen on the market include Jubilee Holdings and CIC Insurance Group.
Britam controlled a fifth of long-term and 8.2% of general underwritten gross premiums in Kenya in 2023, according to Kenya’s Insurance Regulatory Authority.