Britam eyes DRC market
Saturday June 15 2024
Tom Gitogo, the Britam Group Managing Director and CEO.
Insurance provider, Britam Holdings Plc plans to enter the Democratic Republic of Congo (DRC) market via acquisition of an existing insurer as part of an ambitious pan-African expansion drive aimed at lessening sovereign risks and diversifying revenue sources.
The Nairobi Securities Exchange-listed insurer expects to complete the entry in the next six to eight months pushing its geographical presence to eight countries.
Currently, Britam has a presence in seven countries in Africa, including Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique and Malawi.
“We are looking at the market (DRC) seriously and hope to enter in the next six to eight months. We are open to either (acquisition or greenfield investment) … currently, we are looking at an acquisition,” Britam Group Chief Executive Tom Gitogo said in an interview last week.
Britam expects to initially launch life and general insurance products, before introducing asset management.
DRC, the mineral-rich central African Nation with a population of over 105 million people liberalised its insurance sector in 2015 after 50 years of State monopoly granted to SONAS (Société Nationale d’Assurances).
The DRC insurance sector valued at about $300 million (Sh38.75 billion) in 2023, is rapidly expanding, according to Forbes Africa, a Pan-African media company, focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle.
Read: Britam bags life insurer company of year award
The Congolese insurance market currently has about seven non-life cover companies, three life insurance companies, two reinsurers and around 30 brokerage firms.
Britam, with a combined market share of 13 per cent in the Kenyan market, offers a wide array of financial solutions in Life Assurance, General Insurance, Micro Insurance, Health Insurance, Retirement Planning, Property and Asset Management, and Banking. Britam posted a 97.4 percent jump in net earnings for the year ended December 31, 2023 to Sh3.2 billion from Sh1.6billion.
Net revenues from insurance were up 60.8 percent to Sh3.7 billion from Sh2.3 billion. In 2023 the group’s regional business contributed Sh10.2 billion ($79.68 million) to the total insurance revenue compared to Sh7.6 billion ($59.37 million) in 2022.
“The dynamic market landscape in Africa presents both challenges and opportunities. As a forward-thinking organisation, we have remained vigilant in monitoring market trends, consumer behaviour, and regulatory developments. Our proactive approach to market analysis has enabled us to adapt swiftly to changing dynamics, mitigate risks, and capitalise on emerging opportunities,” the company says.