Pan Africa Insurance Holdings Limited has rebranded to Sanlam Kenya

Pan Africa Insurance Holdings rebrands to Sanlam Kenya

 August 17, 2016 Rose Welimo Gateway Insurance, Insurance, Pan Africa Asset Management, Pan Africa Insurance Holdings Limited, Pan Africa Life, Sanlam Kenya3

By Nicholus Nduati

Pan Africa Insurance Holdings Limited has rebranded to Sanlam Kenya, a financial services group currently listed on both the Johannesburg and the Namibian Stock Exchange.

Sanlam Kenya CEO Mugo Kibati says the rebrand has positioned the firm to offer Kenyans greater access to a comprehensive and tailored range of insurance and investment financial solutions.

The rebrand according to Kibati aims to offer Kenyan shareholders, clients and other stakeholders the added comfort and security of doing business.

Currently, Sanlam Kenya enjoys an estimated market share of 8 percent in the Kenyan life insurance industry.

The move sees Pan Africa Insurance Holdings subsidiaries, Pan Africa Life, Pan Africa Asset Management, Gateway Insurance and PA Securities also rebrand to Sanlam Life Insurance, Sanlam Investments, Sanlam General Insurance and Sanlam Securities respectively.

Sanlam Kenya has lined up a variety of general insurance and investment financial products to be launched soon.

The Sanlam Group currently has businesses in 33 countries across Africa and first acquired a stake in Pan Africa Insurance Holdings Limited in 2006, following Sanlam’s acquisition of African Life Assurance Group.

Pan Africa Life Insurance/Assets now Sanlam Kenya set to offer products through Mobile Phones

Sanlam Kenya, formerly Pan Africa Life Insurance, has disclosed plans to offer insurance products through mobile phones in an effort to boost uptake. 

By GEORGE NGIGI

Posted  Wednesday, August 17   2016 at  18:19  http://www.businessdailyafrica.com/Sanlam-Kenya-plans-insurance-products-through-mobile-phones/539552-3348240-item-0-nh24stz/index.html 

IN SUMMARY

• The system upgrade by the insurer was, however, problematic resulting in the loss of clients and intermediaries following delays and inaccuracies in premium calculation.
• Linda Jamii is a micro-health cover that was launched in January 2014 together with Safaricom and Changamka Microinsurance targeting the underserved low end of the market.

Sanlam Kenya, formerly Pan Africa Life Insurance, has disclosed plans to offer insurance products through mobile phones in an effort to boost uptake.in

The insurer last year upgraded its systems to support introduction of new technology-driven services.

Insurance penetration in the country has remained low especially in life business, which is viewed as a preserve of the wealthy.

“The only way to increase penetration of insurance is to use different means away from the traditional agency operation to include digital operations and partnerships,” said Mr Ian Kirk, the chief executive of Sanlam Group.

He, however, declined to disclose the time-lines in which the company is expected to launch the mass market products.
Insurance agents and brokers are the source of 83 per cent of business booked by insurers in the Kenyan market.

The system upgrade by the insurer was, however, problematic resulting in the loss of clients and intermediaries following delays and inaccuracies in premium calculation.

READ: Pan Africa targets Gateway Insurance takeover

Sanlam’s new life business sales for last year declined by 19 per cent leading to shrinkage of its market share to eight per cent at the end of 2015 from 9.8 per cent a year earlier, according to data from the Insurance Regulatory Authority.

Rebranded

“What hit us were the initial implementation challenges where there were mismatches but now we are optimising the system,” said Sanlam Kenya Group chief executive Mr Mugo Kibati.

The insurer has rebranded to Sanlam Kenya to identify with its South Africa-based parent Sanlam Group.

Sanlam Group owns 56.3 per cent stake of the listed company, which recently added general insurance to its mainstay life insurance products.
The multinational has made known ambitions to raise its stake in the subsidiary to 60 per cent.

Pan Africa Life Additional Investments into Gateway General Insurance and Its Performance after Acquisition

Pan Africa buys additional stake in Gateway Insurance

By VICTOR JUMA, vjuma@ke.nationmedia.com  http://www.businessdailyafrica.com/Corporate-News

Pan Africa Insurance Holdings chief executive Mugo Kibati. PHOTO | FILE 

By VICTOR JUMA, vjuma@ke.nationmedia.com

Posted  Monday, March 28   2016 at  23:00

IN SUMMARY

• Pan Africa first bought into the general insurer in March last year, acquiring a 51 per cent stake for Sh561 million.
• The company later raised its interest in Gateway to 56 per cent at a cost of about Sh55 million.
• The move by Pan Africa to raise its stake in Gateway signals its confidence in the company’s future prospects though the subsidiary’s earnings have deteriorated following its acquisition.

Pan Africa Insurance Holdings has acquired an additional five per cent stake in Gateway Insurance, raising its equity in the subsidiary to 56 per cent.

The company had announced that it would buy additional shares in Gateway to make the subsidiary’s founders comply with insurance regulations that cap ownership by individuals at 25 per cent.Pan Africa chief executive Mugo Kibati told the Business Daily that the company subsequently raised its interest in Gateway to 56 per cent at a cost of about Sh55 million.

Pan Africa did not say to what level it was prepared to raise its stake in Gateway but noted that the extra shares would be bought from the family of the company’s founder, the late Godfrey Karuri.

The additional shares were to be bought at the same price of Sh17.56 per share that Pan Africa paid to buy the initial 51 per cent stake.

The move by Pan Africa to raise its stake in Gateway signals its confidence in the company’s future prospects though the subsidiary’s earnings have deteriorated following its acquisition.

Acquisition of Gateway marked a change in strategy at Pan Africa which in 2011 exited the general insurance business to focus on life policies by selling its 39.9 stake in APA Insurance for Sh855 million.

The company later said it needed to re-enter the general insurance business if it was to get a share of economic growth driven by sectors such as construction.

This prompted the Gateway acquisition whose completion coincided with increased competition in Pan Africa’s mainstay life insurance business where it previously was among the largest players.

Gateway’s performance has, however, disappointed, with Pan Africa taking a Sh564 million hit from the subsidiary last year and contributing to a 97 per cent fall in the parent firm’s profit in the year ended December.

READ: Pan Africa Insurance profit falls 97pc on Gateway acquisition

Pan Africa reported that the excess value it anticipated from the takeover of Gateway has surpassed the net worth of the subsidiary by the Sh564 million.

This means Pan Africa paid a hefty premium in the acquisition whose payback is likely to take longer than initially expected.

The accounting loss contributed to the 97 per cent drop in the listed firm’s net profit to Sh27.3 million in the review period, down from Sh871.1 million the year before.

Jubilee Insurance Kenya Chief Executive Patrick Tumbo is Africa CEO of the Year in the recently concluded 42nd Conference and General Assembly of Africa Insurance Organisation (AIO)

Jubilee Kenya boss named Africa CEO of the year

By MUGAMBI MUTEGI  Posted  Tuesday, June 2  2015 at  21:18 @Businessdailyafrica

 

 

Jubilee Insurance Kenya CEO Patrick Tumbo. PHOTO | FILE 

The Jubilee Insurance Kenya CEO Patrick Tumbo has been named chief executive officer of the year at an award ceremony in which 362 member companies from across the continent participated.

inShare

Mr Tumbo got the recognition at the recently concluded 42nd Conference and General Assembly of Africa Insurance Organisation (AIO) in Tunisia.

Organisers of the awards said the winner was selected based on successful product development, excellent service delivery and introducing innovative distribution channels targeting grassroots customers.

“We need to listen to our customers and develop products that serve specific customer needs. That way, the insurance sector will experience a revolutionary change for the better,” said Mr Tumbo.

Nigeria’s Mutual Benefits Insurance won the Innovation of the Year award while the Insurance Company of the Year award went to Misr Insurance Company of Egypt.

Increased premiums

Jubilee Holdings reported a 24 per cent jump in net profit for the year ended December to Sh3.1 billion, helped mainly by increased premiums, with Kenya being its biggest contributing business unit.

Gross premiums increased 30 per cent to Sh30.3 billion, making the company Kenya’s largest in both general and life insurance business.
The insurer recorded double-digit growth in all its insurance operations, including pensions and medical.

The AIO is made up of member insurers across 55 countries in Africa.

The awards are meant to promote growth of the insurance sector through good corporate governance, insurance practice, leadership and risk management.

“Sharing and dissemination of new successful and practical ideas in the industry can be a great tool to fast-track the development of insurance in the continent,” said AIO secretary-general Prisca Soraes.

The conference, which took place between May 24 and May 27, focused on the rise of political risk in the continent and the need for new risk pools to respond to natural catastrophic risk.