Moroccan conglomerate Holmarcom Group, through its holding company, Holmarcom Insurance Activities, has acquired a majority stake in Kenya’s Monarch Insurance Company —a firm associated with a Kanu-era business tycoon, Jared Kangwana for an undisclosed sum.
The firms said Monday the agreement which is subject to certain closing conditions, including regulatory approvals in Kenya is expected to see Holmarcom Insurance Activities become the majority shareholder of the company with a stake of 51 percent along with Kamu Group and Maisha Microfinance Bank.
The Monarch Group associated with Mr Kangwana owns Monarch Insurance, Maisha Microfinance and a raft of real estate properties including Chester House in Nairobi city centre — where Maisha Microfinance Bank’s first branch is located.
Mr Kangwana was the founder chairman of the first independent broadcaster, KTN. He is also associated with The Mall in Nairobi’s Westlands.
“The Holmarcom group has an unmatched depth and breadth of experience in the Moroccan insurance market which is the second largest in Africa and its capital injection into Monarch Insurance will bolster our growth and ambition to become a reference player in Kenya’s insurance industry,” said Kamu Group’s chairman and chief executive Mr Kangwana in a statement following the agreement signed between him and Mohamed Hassan Bensalah, chairman and CEO of the Moroccan group, Holmarcom.
The deal marks the latest high-profile transaction in the local insurance business that has seen the world’s biggest insurers buy into established firms with a regional presence.
Earlier this year, UK-based global insurance solutions provider Linkham Group said it will acquire a majority stake in Resolution Insurance.
This was after agreeing to purchase 100 percent of the equity holding of LeapFrog Investments, a private equity firm backed by US billionaire investor George Soros and JP Morgan for an undisclosed sum.