Absa completes exit from First Assurance after selling entire stake

Nairobi, Kenya – First Assurance Investments Limited has successfully concluded the acquisition of Absa Group's 100% stake in First Assurance Holdings Limited, marking the end of the lender's involvement in the insurance sector. The deal, announced on Monday, followed regulatory clearances and the fulfillment of necessary completion requirements, transferring complete ownership of the holding company, which oversees First Assurance Company Limited and Absa Life Assurance Kenya Limited.

As part of the ownership transition, the two insurance businesses will be rebranded, with Absa Life Assurance Kenya becoming First Assurance Life and First Assurance Company Limited transforming into First Assurance General. Both companies will, however, retain references to their former association with Absa Group through the phrase "Formerly an Absa Group Company" for a period of six months.

First Assurance Investments reassures customers and stakeholders that the transaction will not impact existing insurance products and services, aiming to provide continuity amidst the change in ownership. The existing distribution agreements between the insurance businesses and Absa Bank Kenya will remain intact, suggesting that the lender will continue to offer a channel for customers to access insurance products, even after exiting the ownership structure.

The transaction involves a collaborative transition process designed to minimize disruption to the operations of the two insurers. The company assures all customers, policyholders, and stakeholders that their products and services will not be affected by this change. The ownership shift comes as the two businesses strive to establish a unique identity under the First Assurance brand, while maintaining their current distribution relationship with Absa Bank.