Companies

Absa unit acquires sister company’s life insurance business

blak

Blak managing director William Maara. FILE POTO | NMG

Barclays Life Assurance Kenya (Blak) is set to take on about 100 corporates that were covered by First Assurance’s life policy as it moves to strengthen its business portfolio.

Blak managing director William Maara announced the transfer of its life insurance business to the sister firm in a notice last week that will be effected by June 30, subject to compliance with industry requirements.

The move to acquire the portfolio comes close to four years after Barclays Africa, now Absa Group, bought a controlling stake in First Assurance for about Sh2.9 billion as the Johannesburg-based lender sought to gain a foothold in Kenya’s insurance market.

Mr Maara said First Assurance will now focus on its general and medical insurance business.

“All clients with life policies at First Assurance will be transferred to Blak. The transfer is primarily portfolio life insurance book business currently under First Assurance administration,” Mr Maara told Business Daily.

He also allayed fears of job cuts, saying all employees working under the life insurance department will be absorbed by Blak in the transfer.

The company has further invited clients, directors, policyholders and shareholders opposed to the transfer to raise the matter with the Insurance Regulatory Authority (IRA) by end of March.

Blak’s move to strengthen its life insurance portfolio is set to step up competition locally in a segment dominated by market leader Britam, which has a market share of 22.1 percent according to IRA’s latest annual report.

Other top local companies that the Barclays Africa subsidiary will be competing with as it ramps up its business include Jubilee Insurance and ICEA Lion.

First Assurance is part of the Amalgamated Banks of South Africa (Absa Group) after the September 2015 acquisition that included a Sh700 million capital injection.