Higher returns, oil and gas fuel insurance mergers and acquisitions

Standard Digital

From left: Metropolitan Canon Insurance CEO Andrew Greenwood presents the Group Life Best Practice Award to Jubilee Insurance Life Agency Administrator Peter Njiru, Life Unit Manager Joyce Nderu and General Manager Life Aggrey Mulumbi at the AKI Agent of the Year Award recently. The sector is one of the best performing in Africa.[PHOTO:COURTESY/STANDARD]

Higher returns in the insurance sector and growing middle class are attracting more foreign companies into Kenya, ready to deepen their entry into the local market.

This is happening at a time when the multi-billion shilling industry is undergoing realignments in capital injection and technology - setting new operating standards. The repositioning has seen local companies expand their horizons across the region to increase their growth prospects and diversify risks.

The last two years have seen increased mergers and acquisitions between local and foreign companies. “A number of factors are into play as to why the local insurance is experiencing higher developments. Foreign companies are interested in investing in the local market, owing to sound economic growth the country has been registering,” said Association of Kenya Insurers Executive Director Tom Gichuhi.