Liberty sets sights on top three slot in the next three years

South Africa-based underwriter Liberty says it aims to be among Kenya’s top three insurers by 2020, signaling increased investment to shore up its local subsidiary’s capital base.

The Johannesburg-listed firm, which owns 57.8 per cent of Liberty Kenya #ticker:CFCI, says it will launch new products, revamp retail distribution of insurance covers and exploit digital platforms such as mobile money to grow market share in Kenya.

Liberty Kenya controls 5.92 per cent market share in the life assurance business and 4.39 per cent of the general insurance segment through its subsidiary Heritage, according to data from Insurance Regulatory Authority as at December 2016.

Overall, Liberty and Heritage controlled premiums worth Sh9.66 billion in the year under review to give the firm a market share of 5.22 per cent.

“Our strategic objective is to expand distribution reach through current networks and affinity partners, and explore opportunities through new partners and technologies,” says Liberty Group in its latest annual report.

Britam #ticker:BRIT is the biggest player in the life assurance business followed by Jubilee then ICEA Lion. Short-term business is dominated by Jubilee followed by UAP Old Mutual and APA in third, according to data from the regulator.

Liberty Group did not disclose if it will be pumping additional capital to the Kenyan subsidiaries, and how much cash is needed to shore up the local units.

The need for growth capital has seen Liberty Kenya shareholders experience a dividend drought since 2014 as the firm seeks to retain earnings as the country begins implementing a risk-based capital regime.