Holmarcom Group of Morocco buys 51% stake in Kenya’s Monarch Insurance

KENYA – Moroccan conglomerate Holmarcom Group, through its holding company, Holmarcom Insurance Activities, has acquired a majority stake in Kenya’s Monarch Insurance Company for an undisclosed sum.

The two firms said that the agreement, which is subject to certain closing conditions, including regulatory approvals in Kenya, is expected to see Holmarcom Insurance Activities become the majority shareholder of the company with a stake of 51 percent along with Kamu Group and Maisha Microfinance Bank.

The Monarch Group associated with Kenyan businessman Jared Kangwana, owns Monarch Insurance, Maisha Microfinance, and a raft of real estate properties including Chester House in Nairobi city center where Maisha Microfinance Bank’s first branch is located.

“The Holmarcom group has an unmatched depth and breadth of experience in the Moroccan insurance market which is the second largest in Africa and its capital injection into Monarch Insurance will bolster our growth and ambition to become a reference player in Kenya’s insurance industry,” said Kamu Group’s chairman and chief executive Mr Kangwana in a statement following the agreement signed between him and Mohamed Hassan Bensalah, chairman and CEO of the Moroccan group, Holmarcom.

The deal marks the latest high-profile transaction in the local insurance business that has seen the world’s biggest insurers buy into established firms with a regional presence.

Earlier this year, UK-based global insurance solutions provider Linkham Group said it will acquire a majority stake in Resolution Insurance.

This was after agreeing to purchase 100 percent of the equity holding of LeapFrog Investments, a private equity firm backed by US billionaire investor George Soros and JP Morgan for an undisclosed sum.

“We are convinced that The Monarch Insurance company has a real growth prospects and we are delighted to be able to be part of its evolution in Kenya”

Mohamed Hassan Bensalah – Chairman and CEO, Holmarcom Group

German multinational financial services company Allianz SE, one of the world’s leading insurers and asset managers, also completed the acquisition of a 66% stake in Jubilee Holdings general insurance arm in Kenya in May 2021 making it the majority shareholder.

The acquisition followed the execution of an agreement signed on September 29, 2020, whereby the German company agreed to acquire the majority shareholding in the short-term general (property and casualty) insurance business operations of JHL in five countries in Africa, namely, Kenya, Uganda, Tanzania, Burundi, and Mauritius.

Speaking on behalf of Holmarcom Group, the Chairman and CEO, Mr. Mohamed Hassan Bensalah said, “With an expertise in insurance of more than 40 years, solid fundamentals and a market with strong potential, we are convinced that The Monarch Insurance company has a real growth prospects and we are delighted to be able to be part of its evolution in Kenya.”

The transaction will result in a cash injection to fully capitalize Monarch Insurance Company and unlock funds to drive strategic growth.

Holmarcom is currently the largest private group in Morocco, with a 40-year legacy across Finance, Agro-industry, Real Estate and Distribution and Supply Chain, in Morocco and Africa.

With the acquisition, Monarch Insurance will benefit from Holmarcom’s subsidiaries product innovation in areas such as health insurance and in turn while Holmarcom will benefit from Monarch Insurance’s networks and in-market experience.

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