Barclays Africa, To Acquire a Controlling Interest First Assurance In Kenya

STORY BY ALBERT BWANA

The Barclays Africa Group limited has reached an agreement to acquire approximately 63.3% of first assurance company in Kenya for a net consideration of Ksh.2.8billion that includes a capital injection of Kshs.0.7million.

Completion of the transaction remains subject to regulatory approvals in South Africa , Kenya ,Tanzania and other conditions customary for a transaction of this nature.

“Barclays Africa wants to extend its customer offering to more people across the continent by expanding the range of financial products and services on offer” said Lanz Zulu the Managing Executive for Africa at wealth, Investment Management and insurance at Barclays Africa.

Zulu added that the planned acquisition of First Assurance is a good strategic fit for our business , provides us with a strong platform to expand our bank assurance in East Africa and complements the group’s financial target of increasing our revenues by 25% in Africa outside of south Africa.

Stephen Gathiga , Managing Director of First Assurance says ,”As a majority shareholder ,Barclays Africa brings a strong brand for us to leverage and a vast distribution network platform as well as technical support for our products and services.”

First Assurance has over 50,000 customer policies in force and employs 132 people in Kenya and Tanzania

In 2014 , First Assurance reported a profit after tax of Ksh 518 million and total equity of Kshs 2.1 billion which excludes the capital injection planned as part of the transaction.

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