Firm sells health arm to meet new rule

PHOTO | FILE  AFP

By NATION CORRESPONDENT

Alexander Forbes has sold its Kenyan healthcare arm in a bid to comply with a directive by the insurance authority on individual ownership and risk-based supervision.

The Johannesburg-based firm, which started its operations in the country in 2008, has disposed the health-services business to Afrocentric Investment Corporation at an undisclosed fee.

Afrocentric is associated with Geoffrey Nzau, a Kenyan-born South African business mogul, with vast investments in the energy and real estate sectors.

Alexander Forbes group chief executive Edward Kieswetter said the proceeds of the sale will be used to re-invest in the remaining factions of the business: the insurance brokerage and actuarial services.

“In response to regulatory requirements in Kenya, we have reached a decision that Alexander Forbes Healthcare will gain considerably from being run independently and as a separate unit from our core businesses. The sale of the business is also in line with the goal to align our investments to our core areas,” he said.

Last year the Insurance Regulatory Authority asked Medical Insurance Providers — firms providing both risk broking and insurance services — to either convert to insurance companies or revert to brokerage services by the end of the 2012