Why NCBA wants to buy insurer AIG Kenya

At the heart of regional lender NCBA’s pursuit to acquire 100 percent ownership of AIG Kenya, lies a set of reasons: robust revenue growth, the seasoned leadership of its management team, and an unwavering commitment to a customer-centric ethos by the insurer.

AIG Kenya, an insurance company with deep-rooted customer relationships spanning across Kenya, Uganda, Tanzania, and Rwanda for the past half-century, is the latest target of NCBA Group’s acquisition ambitions.

The insurer, which runs underwriting business for corporations, SMEs, and individual clients, has been a strategic minority investment for NCBA for over 18 years, consistently impressing with its steady revenue growth.

John Gachora, the Managing Director of NCBA, announced this significant transaction in Nairobi. Notably, NCBA, formed through the merger of NIC Group and CBA Group in 2019, has ascended to become the third-largest banking group in East Africa over the last four years. It now proudly serves over 63 million customers through a network of 107 branches.

Should this acquisition be successfully concluded, it would mark a historic milestone. AIG Kenya, an insurer with over 50 years of market presence, is renowned for its general insurance offerings and enjoys an esteemed reputation among customers.

Mr. Gachora emphasized that insurance has evolved into a fundamental financial necessity for NCBA’s customer base across East Africa.

He cited the vision of uniting NCBA’s extensive physical and digital distribution channels with AIG Kenya’s insurance expertise to propel their aspiration of becoming a universal bank capable of addressing the entirety of their customers’ financial needs.

AIG Kenya caters to customers across the East African region, while NCBA serves customers in four East African countries: Kenya, Uganda, Tanzania, and Rwanda. As a regional banking group, NCBA is strategically positioned to leverage AIG Kenya’s breadth and scale to further solidify its presence in its operational markets.

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Diverse range of insurance services

Stella Njunge, CEO of AIG Kenya, lauded the transaction, foreseeing the combination of NCBA’s customer-centric product offerings and cutting-edge technology solutions seamlessly providing customers access to a diverse range of insurance products and services.

However, the successful execution of this transaction hinges on due diligence and approvals from the boards of NCBA, AIG Kenya, AIG Group, and the requisite regulatory authorities in the banking and insurance sectors.

Mr Gachora affirmed NCBA’s excitement in deploying its full suite of capabilities to foster customer growth and safeguard their dreams.

Through their legacy of innovation, they stand poised to catalyze greater insurance market penetration in Kenya and the wider region.

American International Group, Inc. (AIG), a global insurance giant established in 1919, offers a wide array of property casualty insurance, life insurance, retirement solutions, and other financial services across roughly 70 countries and jurisdictions.

In Kenya, AIG has been a dominant force in the general insurance sector since its inception in 1972. Presently, AIG Kenya is primarily owned by AIG Inc., with a minority stake held by NCBA.

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