NCBA Group plans to acquire 100 per cent of AIG Kenya Insurance, the lender, which has hitherto had a 43 per cent stake in the insurer, announced on Monday.

NCBA said its Board of Directors had authorised the commencement of discussions with US multinational AIG Group Inc. to acquire its entire shareholding in the company.

AIG operates in more than 80 countries and has owned a majority of the 50-year-old AIG Kenya Insurance.

“Insurance is increasingly becoming a basic financial need for the type of customer that NCBA serves. We believe that by bringing together NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities we will accelerate towards our ambition to become a universal bank that addresses a full set of our customers’ financial needs,” NCBA Group Managing Director John Gachora said.

With services across Kenya, Uganda, Tanzania and Rwanda, AIG Kenya offers general insurance packages to corporates, SMEs and individuals.

NCBA was formed out of a merger between NIC Group and CBA Group in  2019 and is the third-largest banking Group in East Africa.

“We have held a minority shareholding in AIG Kenya for over 18 years and have been impressed by the steady revenue growth of the business, the expertise of the management team and the customer-centric spirit that is at the heart of its long-standing customer relationships,” Gachora added.

On her part, AIG Kenya CEO Stella Njunge said “Through a combination of NCBA’s customer-centric product offering and their cutting-edge technology solutions, customers will be able to access a variety of insurance products and services, seamlessly.”

NCBA Bank’s disclosures for the year ending June 30 show that the lender posted a profit after tax of Ksh.9.3 billion in its first quarter. This is a 20.3 per cent increase in earnings compared to Ksh.7.8 billion reported during a similar period last year.

Last year, NCBA made a net profit of Ksh.10.22 billion, up from Ksh.4.57 billion reported in 2021.

At the same time, NCBA’s investment in AIG Kenya last year was Ksh.1.03 billion, up from Ksh.987.3 million in 2021.