South Africa insurance group, Hollard International is in its final stages of acquiring a significant stake in Apollo Investments Limited, the holding company of Kenya-headquartered insurer APA Insurance.
With the acquisition, Hollard International becomes the second international investor in the Kenyan insurer, APA, behind Swiss Re, which acquired a stake in 2014.
“This strategic investment, subject to regulatory approvals, gives Hollard International a presence in the East African market, supplementing its existing operations in Southern and West Africa,” said Hollard International in a press statement seen by The Kenya Times.
APA to benefit big from the acquisition
For APA, the partnership gives Kenya’s second-largest insurer access to a larger market and expanded opportunities for growth, says Ashok Shah, Group CEO of Apollo Investments Limited.
Currently, the insurance market is dominated by APA insurance alongside GA insurance and Old Mutual Insurance.
“It’s an exciting time for APA because the Hollard International partnership will open new doors and new avenues of growth for our business.
We’ll have access to substantial new expertise in classes of business such as Motor, Engineering, Marine and other specialist lines of insurance, which we believe will open up a number of profitable business opportunities,” APA executive director, Ashok Shah stated.
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He also stated that the venture would enable APA insurance to expand its operations in Kenya while strengthening their foothold in Uganda and Tanzania.
“Moreover, it positions us favorably to seize opportunities in the Ethiopian market once it becomes accessible,” Shah added.
Hollard’s expansion throughout Africa
“Hollard International has been looking for an East African partner for some time, and APA ticked so many boxes.
It has an established track record, an impressive value proposition with strong broker and customer relationships, and it shares our values around community, reliability and customer-centricity,” Hollard International CEO Pravin Kalpagé explained.
Additionally, he stated that exploring options in Francophone West Africa is next on Hollard International’s acquisitions.
Currently, in South Africa, Hollard is the largest privately owned insurance group.
It offers both life and non-life insurance solutions.
Hollard International extends insurance solutions outside of South Africa through operations in Namibia, Mozambique, Zambia, Lesotho, Botswana and Ghana.
Moreover, it has extended its influence to East Africa with Kenya, Uganda and Tanzania being added to the list through the APA transaction.
According to a report by the Insurance Regulatory Authority report for the first quarter of 2023, APA insurance alongside GA insurance, Jubilee, Britam, Old Mutual and CIC general insurance controlled 49.6% of total gross premium income under general insurance business.
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APA Insurance is owned by Apollo Investments Limited and was founded in 1977.
