Britam acquired a 30 stake in Continental Re Kenya for Ksh764 million 5.9 million, boosting its reinsurance portfolio amid market tightening.
The Continental Re stake added Ksh121 million 936,630 in pre-tax earnings, supporting Britams income diversification and cash flow growth.
Britams net profit surged 53.5 to Ksh5.03 billion 38.9 million in 2024, driven by strong investments and cost controls.
Britam Holdings Plc, the Nairobi-based financial services group backed by prominent Kenyan investors including Jimnah Mbaru, Peter Munga, James Mwangi, and Jane Wanjiru Michuki, has expanded its footprint in Kenyas reinsurance sector with a strategic acquisition in Continental Reinsurance Kenya, a subsidiary of Nigerias Continental Reinsurance Plc.
The group invested Ksh764 million 5.9 million through its wholly-owned unit, Britam Life Assurance Company Kenya, to acquire a 30 percent beneficial stake in Continental Re Kenya. The deal, disclosed in Britams latest annual report , values the reinsurer at approximately Ksh2.8 billion 21.67 million. It aligns with Britams broader strategy to diversify earnings and strengthen its reinsurance portfolio amid a tightening market environment.
Building on previous domestic investmentsThe acquisition adds to Britams string of recent strategic investments in Kenya. During the reporting year, Britam Life Assurance participated in HF Groups rights issue, acquiring an additional 722.7 million shares for Ksh2.9 billion 22.45 million.
The discounted acquisition resulted in a net impact of Ksh2.2 billion 17.03 million on the profit and loss statement. HF Group, classified as an associate, contributed Ksh244 million 1.89 million in profit, up from Ksh187 million 1.45 million in 2023.
Britam reported that its newly acquired stake in Continental Re Kenya contributed an immediate Ksh121 million 936,630 in pre-tax earnings, enhancing its reinsurance cash flow and bolstering its income diversification.