NCBA Group Board of Directors has given the lender the green light to acquire a full stake in AIG Kenya Insurance Company Limited.
Once concluded, NCBA seeks to offer a sophisticated general insurance proposition to corporates, SMEs and individuals to its customers through this transaction it terms landmark.
Currently, NCBA holds 33.33 per cent of shares at AIG Kenya and seeks to acquire an additional 66.67 per cent of the shares.
“Insurance is increasingly becoming a basic financial need for the type of customer that NCBA serves. 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,” said NCBA Group Managing Director (MD) John Gachora.
“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.”
Moreover, NCBA seeks to tap AIG customers in the East Africa region where the NSE-listed lender operates, boasting over 63 million customers and a network of 107 branches.
Read: NCBA Group Profit Climbs 20.3pc To Ksh9.3 Billion
“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,” said Stella Njunge, CEO of AIG Kenya.
“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,” added Njunge.
NCBA MD further noted that the tier-one lender is well positioned to offer insurance services to its customers and potentials in the region even as it bolsters its reach in the region.
“Through our legacy of innovation we are well positioned to catalyze the deeper market penetration of insurance in Kenya and the region,” added Gachora.
NCBA was formed out of a merger between NIC Group and CBA Group in 2019.
NCBA Group recorded a 20.3 per cent jump in its net profit to Ksh9.3 billion for the half-year period ended June 30 2023 compared to Ksh7.8 billion reported in a similar period last year.
The growth was driven by an increase in operating income and a decline in loan impairment charges by 21 per cent.