Britam, backed by Kenya’s Elite, buys $5.9 million stake in Nigerian reinsurer

Key Points

• 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 Britam’s income diversification and cash flow growth.
• Britam’s 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 Kenya’s reinsurance sector with a strategic acquisition in Continental Reinsurance Kenya, a subsidiary of Nigeria’s 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 Britam’s latest annual report, values the reinsurer at approximately Ksh2.8 billion ($21.67 million). It aligns with Britam’s broader strategy to diversify earnings and strengthen its reinsurance portfolio amid a tightening market environment.

Building on previous domestic investments

The acquisition adds to Britam’s string of recent strategic investments in Kenya. During the reporting year, Britam Life Assurance participated in HF Group’s 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.

Profits surge amid strategic execution

For the fiscal year ended Dec. 31, 2024, Britam posted a 53.5 percent increase in net profit to Ksh5.03 billion ($38.9 million), up from Ksh3.28 billion ($25.4 million) in 2023. The performance was driven by strong investment returns and tight cost controls.

Kenya remained the group’s primary earnings driver, contributing nearly 80 percent of profits, while regional operations across East Africa accounted for the remainder. The firm’s total assets grew 19.6 percent to Ksh208.5 billion ($1.62 billion), while shareholders’ equity rose 15 percent to Ksh29.5 billion ($229.2 million), from Ksh25.7 billion ($199.7 million) in the previous year.

Reinforcing its position in East Africa

Britam, with a presence spanning insurance, asset management, banking, and real estate, is cementing its leadership in the East and Central African financial landscape. Its influential shareholder base, including James Mwangi, Peter Munga, Jimnah Mbaru, Benson Wairegi, and Jane Wanjiru Michuki, reinforces its market dominance.

The investment in Continental Re Kenya signals a renewed vote of confidence in the business fundamentals of the Nigerian reinsurer’s regional arm. It also reflects the growing synergies between the two firms, especially in housing insurance and other specialized lines. The deal strengthens Britam’s regional buffers and underscores its long-term strategy to deepen its footprint in East Africa’s high-growth financial services market.