NCBA Group has announced the completion of the acquisition of 66.67 percent of AIG Kenya Insurance Company to take full ownership of the company.
The lender said it had received all necessary approvals from the Competition Authority of Kenya, the Insurance Regulatory Authority, and the Central Bank of Kenya.
The insurance firm is a subsidiary of the American International Group Inc (AIG), a conglomerate with a presence in more than 80 countries.
"NCBA Group Plc is pleased to announce that the company has completed the acquisition of 66.67 percent of the issued share capital of AIG Kenya Insurance Company Limited (AIG Kenya), a company incorporated in the Republic of Kenya following receipt of all regulatory and corporate approvals," said NCBA in a public notice dated July 1.
This acquisition makes AIG Kenya a wholly-owned subsidiary of NCBA Group.
NCBA will benefit from AIG's clientele which spans from multinationals, large Kenyan businesses, individuals and small and medium-sized enterprises.
The bank's acquisition positions it to offer its customers a wider range of financial services and tap into AIG's insurance experience and capabilities.
Various Kenyan banks have ventured into bancassurance including Equity with the life assurance and general insurance subsidiary businesses, KCB and National Bank, among others.
NCBA Group posted a Sh5.3 billion net profit in the first three months to March, a 4.6 percent increase compared to Sh5.1 billion reported during a similar period last year.
This increase was attributed to non-interest income growth and reduced tax expense in the review period.
NCBA Group operates a network of more than 100 branches in five countries - Kenya, Uganda, Tanzania, Rwanda, and Cote d'Ivoire.
