NCBA Insurance Company Limited (Dec 2024)


AIG Kenya Insurance Company Limited’s (AIG Kenya) majority shareholding moved to NCBA Group (group) following the exit of AIG MEA Limited through a share purchase agreement that was executed on 2nd February 2024. The transaction was completed on 1st July 2024. NCBA previously owned a 33% stake and exercised the right of first refusal to increase shareholding to 100%. The top five shareholders of NCBA are First Chartered Securities Limited (14.4%), Enke Investments Limited (13.2%), D & M Managaement Services LLP (11.4%), Brookshire Limited (8.3%) and Westpoint Nominees (7.7%). The group’s flagship operation, NCBA Bank is one of the leading banking groups in Kenya and has a diversified presence in Uganda, Tanzania, Rwanda and Ivory Coast. The bank has an estimated domestic market share by assets of 8% and leads the market in corporate banking, asset finance and digital banking in Kenya.

The full acquisition of the former AIG Kenya strategically fits into the group’s asset finance and insurance division through product and operational synergies. In this respect, the insurer’s brand was realigned to that of the group on 30 July 2024, changing to NCBA Insurance Company Limited (NCBA Insurance). Furthermore, the insurer’s low risk retention reinsurance program, which was highly embedded in the AIG MEA group structure, is expected to change towards increased risk participation during the 2025 renewal period. Changes to systems and offices are expected over the short term as the integration process is bedded down. Given the entity’s limited contribution to the wider NCBA group equating to c.6% of total income and less than 1% of total assets, a standalone credit anchor has been maintained with the credit profile of NCBA group capping the rating.

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