Global reinsurance giant Swiss Re is to acquire a 13.81% stake in Britam Holdings, Kenya’s largest company in the life insurance and pension annuity sector, for an undisclosed fee.
According to an announcement, Swiss Re will acquire 348,504,000 ordinary shares in Britam from one of its key shareholders, Plum LLP.
Once the deal is completed, which remains subject to regulatory approvals from the Capital Markets Authority, Insurance Regulatory Authority and the Central Bank of Kenya, Swiss Re will hold roughly 13.81% of the issued ordinary shares of the Kenya domiciled player.
According to reports, Britam claims just over a fifth of the Kenyan life insurance and pension annuity market, and executives in the Kenyan life industry have previously underlined the growth potential of life business in the region owing to low penetration rates.
At the same time, Britam has entered into a conditional investor agreement with the reinsurance giant, which sees Britam agree to adhere to certain corporate governance, information and compliance and governance standards.
The announcement states that the investment of Swiss Re in Britam will provide the latter with a number of benefits, including the fact Swiss Re is to share its experience in mergers and acquisitions, international expansions and capital raising, as well as enhancing Britam’s financial flexibility and underwriting capacity.
Furthermore, Britam is expected to benefit from Swiss Re’s industry knowledge and technical expertise, as well as its global network of investors and market participants.