NCBA Group has announced its intentiojn to acquire a 100 per cent stake in AIG Kenya Insurance Company Limited in a move poised to be a milestone in the financial sector.
NCBA Group, the result of a merger between NIC Group and CBA Group in 2019, has experienced substantial growth over the last four years and currently stands as the third-largest banking group in East Africa, catering to over 63 million customers through its extensive network of 107 branches.
Explaining the rationale behind this strategic move, John Gachora, the Managing Director of NCBA Group, emphasized the growing importance of insurance as a fundamental financial need for their customer base.
"We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs," Gachora stated.
AIG Kenya, with its presence across the East African region, offers an opportunity for NCBA to strengthen its position in the markets it serves.
Gachora also highlighted their longstanding relationship with AIG Kenya, stating, "We have held a minority shareholding in AIG Kenya for over 18 years and have been impressed by the steady revenue growth of the business, the expertise of the management team, and the customer-centric spirit that is at the heart of its long-standing customer relationships."
Stella Njunge, CEO of AIG Kenya, expressed excitement regarding the potential merger.
"The announcement of intent by NCBA and AIG is an exciting development as it represents an opportunity to continue to build on AIG Kenya’s solid platform," Njue remarked.
She emphasized that the collaboration between NCBA and AIG Kenya would enable customers to access a wide range of insurance products and services seamlessly, leveraging NCBA’s customer-centric approach and cutting-edge technology solutions.
"Through a combination of NCBA’s customer centric product offering and their cutting-edge technology solutions, customers will be able to access a variety of insurance products and services, seamlessly," she added.
However, the execution of this transaction remains contingent upon the completion of necessary due diligence and approvals from the boards of NCBA, AIG Kenya, AIG Group, and regulatory authorities in the banking and insurance sectors.
Gachora concluded with an expression of his enthusiasm for the future prospects of this merger.
"We are excited to bring the full muscle of NCBA’s capabilities to continue inspiring the growth of our customers while protecting their dreams. Through our legacy of innovation, we are well positioned to catalyze the deeper market penetration of insurance in Kenya and the region," Gachora concluded.
This prospective acquisition reflects NCBA Group PLC's commitment to expanding its offerings and enhancing its position as a financial leader in East Africa, promising potential benefits for both the institution and its customers.