South Africa: Barclays to buy majority stake in Kenyan insurer

Source: Middle East Insurance Review | Jul 2015

Johannesburg-based Barclays Africa has reached an agreement to buy 63.3% of Kenya’s First Assurance for around KES2.8 billion (US$28.8 million), including a KES722 million injection.

The deal is subject to regulatory approvals in South Africa, Kenya and Tanzania. First Assurance is the 10th-largest general insurer in Kenya and also offers general insurance in Tanzania and life insurance in Kenya. It reported a profit after tax of KES518 million and total equity of KES2.2 billion in 2014.

Barclays Africa said the acquisition is in line with its strategy of growing its wealth, investment management and insurance businesses in East Africa. It also comes shortly after the launch of Barclays Life Assurance Kenya (BLAK) on 30 April this year. The intention is to combine First Assurance’s life operations in Kenya with BLAK once the transaction is completed. The merger is expected to give Barclays Africa a general and life insurance presence in Kenya as well as a general insurance presence in Tanzania.

KES1 = US$0.01

Comment | Print

Name*

Email*

Comment*

Code Verification*

Enter the code shown above in the box below.

Note that your comment may be edited or removed in the future, and that your comment may appear alongside the original article on websites other than this one.