Kenya's largest insurer Britam to tap $5bn Congo insurance market
TLDR
- Britam Holdings, Kenya's largest insurer, plans to enter Congo's insurance market, targeting acquisition opportunities and possible greenfield operation.
- Congo, with a population of approximately 100 million and low insurance penetration rates, presents a lucrative opportunity for Britam's expansion.
- Britam initially aims to offer life and general insurance products in Congo, with potential plans to introduce asset management services in the future.
Britam Holdings, Kenya's largest listed insurer, is eyeing entry into the underserved insurance market of the Democratic Republic of Congo later this year. The company, with operations across seven African economies, is primarily seeking acquisition opportunities in Congo, though establishing a greenfield operation is also under consideration, according to CEO Tom Gitogo.
Congo presents an attractive opportunity with its sizable population of about 100 million people and low insurance penetration rates. The ratio of gross direct insurance premiums to gross domestic product is below the continent’s average of 2.6% and a global average of 7.4% as calculated by Deloitte LLP.
The country's insurance market, estimated by Congo's national investment promotion agency to be as large as $5 billion, offers significant growth potential for Britam. Initially, Britam plans to launch life and general insurance products in the Congolese market, with the potential introduction of asset management services later on.
Key Takeaways
Despite being Africa's second-largest nation by area and a major source of copper and cobalt, the Democratic Republic of Congo remains one of the world's poorest countries. The nation liberalized its insurance industry around a decade ago, allowing competition against the state-owned monopoly, Société National d’Assurances. Mayfair Insurance Co., a closely held company, expanded its operations to Congo in 2020, as stated on its website. Additionally, other Kenyan insurers, such as Jubilee Holdings Ltd. and CIC Insurance Group Ltd., have shown interest in tapping into the Congolese market. With its vast resources and growing economy, Congo presents significant opportunities for insurers seeking to capitalize on its potential.
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