Kenya’s largest insurer company by market value, Britam Holdings Ltd., is planning to expand its presence in African countries where insurance is still uncommon. The company aims to increase its revenue by growing in regions with low insurance use.
Britam, which already operates in seven African nations, said it prefers buying existing businesses over starting new ones from scratch. The CEO, Tom Gitogo, mentioned that they are particularly interested in the Democratic Republic of Congo (DRC), where the potential for insurance growth is huge. He said the company hopes to complete a deal there soon.
Insurance runs very low in many African countries, with some having only about 1% of people covered, according to Britam’s Chairman, Kuria Muchiru. He added that even if they manage to raise that number to 15% in five years, it would still be a small slice of the market available.
Despite challenges, Britam’s revenue from insurance grew by 11% in the first half of the year. However, their net income dropped by over 10% to 1.74 billion Kenyan shillings (around $13.5 million). Still, the company’s shares have jumped 57% this year, trading at 9 shillings in Nairobi.
With many African markets still at the early stages of insurance development, Britam’s move could open up new opportunities and help them tap into untapped customer bases across the continent.