Britam's purchase of rival
The combined market share of Britam and Real stood at 10.9 per cent in September compared to Jubilee's 11.9 per cent, according to data from the
This has bridged the gap between Britam and Jubilee to one percentage point compared to 4.3 in
Britam, which has interests in insurance, real estate and asset management, received shareholder approval last week to buy 99 per cent in
"The merged entity now makes Britam the second largest insurance firm in
"We will benefit from economies of scale and with a bigger balance sheet we can take on bigger risks such as mining, oil and gas."
The IRA data show that Britam with
The buyout of Real sparked Britam's share price rally that has seen it gain 134 per cent over the past six months to the current Sh19.20 — making it the most valuable insurance firm at the Nairobi Securities Exchange (NSE).
Britam is now valued at Sh41.2 billion compared to Jubilee's Sh18.80 billion.
Jubilee, which has gained 15.33 per cent to Sh314 over the six months, was earlier last year the most valuable insurer at the
Real insurance provides general business like fire, commercial, and motor vehicle risks while Britam had been dominant in the life business.
Britam says the acquisition is informed by its quest to get a larger share of
It has presence in
This means that
An acquisition provides an easy solution compared to a start-up, which could involve buying land, putting up buildings, hiring local staff, seeking regulatory approval and struggling to fight for market share against established rivals.
This the latest buyout to be pursued by Britam, which on
Its ambitions to ramp up foreign subsidiaries mirror the rush by local insurers including
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