I&M Acquires Youjays Insurance Brokers Limited
Nairobi, 5th April 2018: I&M Bank Limited, through its wholly owned subsidiary, I&M Insurance Agency Limited (IMIAL) has announced the successful completion of acquisition of Youjays Insurance Brokers Limited (YIB). IMIAL acquired 100 percent of the shareholding of the insurance broking firm simultaneously merging its operations with the Group’s Bancassurance division. The acquisition was completed upon receipt of necessary regulatory approvals from the Central Bank of Kenya, the Competition of Kenya Authority of Kenya and the Insurance Regulatory Authority of Kenya. IMIAL and YIB entered into this agreement in October 2017 to acquire all of the issued share capital of YIB. The just concluded deal underpins the Group’s efforts in expanding revenue streams for its non-funded income portfolio in line with its iMara corporate strategy.
Commenting on the acquisition, Kihara Maina, IMIAL’s Director and CEO of I&M Bank, Kenya noted, “At I&M, we believe in forming strategic partnerships that place the Group in a position to take advantage of growth in the industry, which ultimately increases our shareholders’ value. “This merger is yet another step in I&M Group’s journey of strategic mergers and acquisitions over the last decade. It will definitely scale up the Bank’s Bancassurance business portfolio where customers will continue to enjoy a wider range of insurance solutions via our network. I believe that the move will also help us penetrate the Bancassurance market further while continuing to deliver value to customers through market driven insurance solutions,” Kihara reiterated.
IMIAL on its part is expected to benefit from additional capacity and expertise to grow the Bancassurance offering, which provides brokerage services for personal and commercial lines.
Further, the Bank’s insurance agency also stands to benefit from YIB’s long heritage, growing customer base of over 400 customers and a strong insurance premium portfolio of over Kshs. 400 million. Speaking at the completion ceremony, YIB’s Director Mr. Uday Shah said that in selling the business to I&M Group, our clients, who we have served for more than 30 years, are in the right hands and will continue to enjoy the same level of personalized service that they experienced in the past.
I&M Group continues to focus on mergers and acquisitions as part of its growth strategy. The transaction with YIB adds to a list of previous successful strategic alliances that the Group has effectively completed, including the more recent ones such as the acquisition of Giro Commercial Bank Limited and I&M Burbidge Capital Limited.
YIB has been in existence in the Kenyan market since 1987 and deals with life and non-life insurance business. On the other hand, IMIAL was set up in 2014 and has continued to offer a wide range of insurance products from several leading insurance companies covering Travel, Motor, Household, Child Education and Personal Accident insurance.
About I&M Group
I&M Bank Limited is a leading commercial bank in Kenya. With a rich history spanning over 40 years and offering a full range of corporate, personal, premium, business and alternative banking products, I&M Bank is a dominant player in the East African banking industry. Since its inception in 1974, the Bank has evolved from a community financial institution to a publicly listed Kenyan-based regional commercial bank offering a full range of Corporate, Business, Premium Client and Personal banking services.
I&M Bank is wholly owned by I&M Holdings Limited (IMHL) which is listed on the Nairobi Stock Exchange. IMHL was listed on the Nairobi Securities Exchange (NSE) soon after it was incorporated in August 1950 and has the distinction of being one of the oldest companies to list on the (NSE). It is regulated by the Capital Markets Authority, the Central Bank of Kenya as a non-operating bank holding company and the Nairobi Securities Exchange. CDC Group plc, a development finance institution wholly owned by the government of the United Kingdom owns approximately 10.68% of IMHL.
IMHL operates in four countries: Kenya, Tanzania, Rwanda and Mauritius and has a market capitalization of circa Kshs 51.5 billion with Total Assets of Kshs 240 billion as at December 2017, a branch network of 84 and a staff complement of over 1850 spread across the 4 countries
For more information, please visit their website at www.imbank.com.