Deal completed by Emerge Invest (sell-side advisor)

Present in Kenya since 2014, the Mauritian insurer takes an important new step in its East Africa expansion strategy with the finalization of the acquisition of Saham Kenya.

Mauritian insurance company MUA has just announced the finalization of the acquisition of Saham Assurance Company Kenya Limited (Saham Kenya), through its subsidiary MUA Insurance (Kenya). Present in the region since 2014, when it acquired Phoenix TransAfrica Holdings (with a presence in Kenya, Tanzania, Uganda and Rwanda), MUA is strengthening its local foothold. This acquisition is expected to "send a strong signal regarding MUA's confidence in the prospects for insurance in Kenya", states the Mauritian group's management in a press release.

The transaction follows approval from regulators, including the Insurance Relative Authority (IRA, Kenya), the COMESA Competition Commission and the South African Reserve Bank (the South African central bank). The Kenya Competition Authority was also duly notified of the acquisition.

Previously owned by pan-African insurance group Sanlam Pan Africa, Saham Kenya is one of the most dynamic insurance companies in Kenya. For the management of the Mauritian insurer, the integration of Saham Kenya is both complementary and timely, as the two companies "share certain essential characteristics in terms of business structure, values, culture and market knowledge."

"The integration of the two teams, which should be effective by the end of the year, is subject to IRA approval. It would enable MUA to strengthen its market position and trigger significant value creation", states MUA's management. Saham Kenya's Managing Director, Lydia Kibaara, is set to lead the merged entity, while the current MUA Kenya Director, Ashraf Musbally, retains oversight of the East African subsidiaries and remains a member of the board of directors of the holding company.

A quarter of revenue generated by the Kenyan market

The Mauritian group's expansion strategy focuses on increased insurance penetration in Kenya, a market that presents enormous potential in a context of rapid demographic growth. "Today, operations in East Africa represent approximately a quarter of our revenues. We want to increase this contribution significantly over the next three years and join the top 10 insurance companies in Kenya", explains Bertrand Casteres, CEO of the MUA group.

As a reminder, MUA is the largest insurance company listed on the Stock Exchange of Mauritius in terms of market capitalization. Last year, the group restructured its subsidiaries and associated companies, separating the insurance activities in Mauritius from the group's international activities.

Today, MUA employs more than 670 people across its subsidiaries in Mauritius, Kenya, Uganda, Rwanda, Tanzania and the Seychelles.

Article sources: LA AFRIQUE TRIBUNE