Barclays Africa reached the agreement to buy a 63.3% stake in First Assurance Company Ltd, a deal valued at US$28.21 million which included a capital injection of US$7.22 million.
“All clients with life policies at First Assurance will be transferred to BLAK. The transfer is primarily portfolio life insurance book business currently under First Assurance administration,” Mr Maara said.
Following the decision, the company has further invited clients, directors, policyholders and shareholders opposed to the transfer to raise the matter with the Insurance Regulatory Authority (IRA) by end of March.
BLAK’s move to strengthen its life insurance portfolio is set to step up competition locally in a segment dominated by market leader Britam, which has a market share of 22.1% according to IRA’s latest annual report.
First Assurance is a subsidiary of the Amalgamated Banks of South Africa (Absa Group) after the September 2015 acquisition which also controls a majority stake, 66.6% at Barclays Life Assurance Kenya.
Absa is in the race to extend its footprint of holistic financial products and services across the continent in the most convenient through capitalising on accessibility and affordability in line with the evolving needs of customers.