Absa Group no longer owns any part of its Kenyan insurance business. First Assurance Investments Limited has completed the purchase of Absa's entire stake in First Assurance Holdings Limited, Capital FM and People Daily reported. According to Capital FM, the deal was announced on Monday. It followed regulatory approval and the usual completion conditions.
The holding company controls two insurers: First Assurance Company Limited and Absa Life Assurance Kenya Limited. People Daily said the shares came from Absa Financial Services Africa Holding Proprietary Limited and Absa Insurance Company Limited. Business Daily valued the buyout at KSh 3 billion and described the buyer as a Mudavadi group. The available reports give no further detail on the price or the buyer's owners.
Both insurers are getting new names. Absa Life Assurance Kenya will become First Assurance Life. First Assurance Company Limited will become First Assurance General. Capital FM reported that both will carry the line "Formerly an Absa Group Company" for six months.
First Assurance Investments said the deal would not affect existing insurance products or services. "We would like to assure all our customers, policyholders and stakeholders that our products and services are not affected by this transaction," the company said in its announcement.
The insurers will keep their current distribution deals with Absa Bank Kenya. The bank will therefore remain a channel for customers to buy their policies. The announcement also said the deal included a joint transition process. It is meant to keep the two insurers running without disruption.