Pan Africa Insurance buys stake in Gateway Insurance
Daily Nation, Wednesday, March 18, 2015
Pan Africa Insurance Holdings Limited has acquired a 51 per cent majority shareholding in Gateway Insurance Company Limited.
Shareholders of the latter will get Sh561,023,562 in exchange for 31,948,950 ordinary shares priced at Sh17.56 apiece.
“We
are delighted to have concluded this transaction, giving us a majority
stake in Gateway. Pan Africa’s Group strategy includes diversifying
investments in a way that will maximise and meet client expectations
while growing shareholder value. We are on a path to make Pan Africa a
one-stop-shop for our client financial solutions,” board chairman John
Simba said.
He said the company had returned to general
insurance at a time when figures indicated that insurance penetration
was low, therefore, providing huge opportunity for growth.
A CRITICAL COMPONENT
“Financial
services are a critical component of any economy which intends to
record sustainable growth. Insurance companies only account for 32 per
cent of financial service providers in Kenya excluding co-operative
societies and a measly 0.3 per cent when cooperative societies are
included.
“This means that while a savings culture is
budding among our people - which is how it should be - there is a gap in
the area of risk management which cannot be ignored,” Mr Simba said.
“Gateway’s established brand in short-term insurance service and a countrywide presence fits well into Pan Africa strategy.”
The
group structure will change to incorporate the new general insurance
subsidiary so that management of the firm will be at holdings level by
the group chief executive, while business lines (Life, General and Asset
Management) will be headed by the respective chief executives.
Group
chief executive Mugo Kibati said the new business venture would “see
Pan Africa compete effectively” with their peers in the industry.
