Liberty shareholders at a past investor briefing. Liberty Kenya Holdings
is planning a Sh23 billion expansion through mergers and acquisitions
in Kenya and Nigeria. PHOTO | COMPANY FILINGS
Liberty Group is planning a Sh23 billion expansion through mergers and acquisitions in Kenya and Nigeria.
The
third largest South African insurer by market capitalisation is looking
to merge or acquire Kenyan businesses in life insurance, short-term
insurance and insurance asset management.
According to
Sandile Hlophe, CEO of Liberty Group Arrangements, the amount will be
spread towards expansion prime points which are Kenya and Nigeria.
“Our
business valuation currently stands at R40 billion, through this new
expansion strategy in key markets, we are looking to grow it to R100
billion by 2020,” said Mr Hlophe during a media briefing on the state of
Liberty Group’s business in the continent.
PENETRATION
He
added that Kenya is a promising country, with multinationals looking to
set up their businesses locally. Mr Hlophe said that besides, insurance
penetration in the country is still at 3 per cent, below that of South
Africa which is 14.1 per cent.
Nigeria’s Business Day
reported that Liberty Group is already firming up a deal in Nigeria
that will see it acquire a stake in two companies for Sh8.4 billion by
the end of the year.
The company is yet to disclose which local firms it will acquire in Kenya.
According
to a recent report by global credit ratings agency Fitch, Kenyan
insurance companies are currently ripe for foreign investment.
The
report, however, notes that small companies will be bought more since
larger and more stable insurance firms are expensive at current market
prices.
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