MUA Ltd, a Mauritian insurer that owns subsidiaries in East Africa, is adding its investment in Kenya’s insurance sector by increasing 36% on from its previous investment.
Five years on from a Ksh2.2 billion investment, the insurer is pumping Ksh3 billion into the sector in what the firm said will be the company’s biggest investment in the country.
In a press statement from the insurer, MUA said it was convinced of the Kenyan market’s viability and that the country represents an investment opportunity due to a growing gross domestic product (GDP).
“The World Bank projects GDP growth of 5.8% in 2019 and 6% in 2020,” MUA said.
The announcement for the Ksh3 billion investment was made as Kenyan business leaders accompanying President Uhuru Kenyatta visited MUA’s head office in Port Louis, Mauritius.
Bertrand Casteres, Group CEO of MUA said, “We take the opportunity of President Kenyatta’s visit to Mauritius to announce our willingness to invest up to USD 30 million (Ksh3 billion).”
The insurer also wants to significantly improve its market share in the Kenyan market.
“Kenya is our smallest operation. We have less than 1% market share and this is one of the reasons for the investment so that we increase our market share to 45% within the coming years.” said MUA CEO Kenya and East Africa.
MUA has been present in East Africa since 2014 when the group purchased Phoenix TransAfrica Holdings.
The acquisition saw MUA — which stands for Mauritius Union Assurance — take controlling shares of Phoenix TransAfrica subsidiaries in Kenya, Uganda, Tanzania, Uganda and Rwanda.
Currently, the Mauritius based insurer owns 66% shareholding in MUA Insurance (Kenya) Limited.
MUA is listed on the Mauritius Stock Exchange since 1993 and is worth Ksh9 billion.
The firm also focuses on digital innovation, with the launch of online travel insurance and accidental d***h cover via mobile phone apps.
MUA added that its increased investment in Kenya is also tied to a “stable macroeconomic environment and robust growth in the services sector” as well as a “young English-speaking population, with a high rate of computer literacy.”
Kenya’s insurance sector has players such as Jubilee and UAP .
At the Nairobi Securities Exchange, six companies are listed under the insurance sector, with Jubilee Holdings joined by Sanlam Kenya, Kenya Re-Insurance Corporation (Kenya-Re), Liberty Kenya Holdings, Britam Holdings and CIC Insurance Group.