Kenya Re improved its cash reserves significantly last year by issuing 2.099 billion of new shares. Its capital base quadrupled from Sh1.75 billion to Sh6.99 billion.

Kenya Re managing director Jadiah Mwarania said in an interview, “Increasing our capital base was necessary for accessing some markets. We are thinking of Egypt for re-takaful business given the high Muslim population. That could be our next stop next year.”

He further revealed that Kenya Re has already carried out a feasibility study on the Nigerian and Sudanese market; however, the firm will prioritise Egypt.

He added, “The potential is huge given the growing Muslim population and financial inclusion is also rising. Products such as ‘sukuk’ bonds will mean more reinsurance.”

According to media reports, Kenya Re’s entry into Egypt will help increase the company’s retakaful premiums beyond the Sh1 billion.

Last year, local media houses reported that Kenya Re was looking to penetrate new markets and expand its existing base in order to increase market share, spread business risks and increase return on shareholders’ funds.

Reportedly, Kenya Re will seek an extension of the law that binds local insurers to cede at least 20 percent of the reinsurance business to the Nairobi-based firm. This law is set to expire on December 31, 2020.

Kenya’s Reinsurance is adopting blockchain technology as a security measure to eradicate fraud. With its expansion plans to other African markets, leveraging blockchain technology to fight cybercrime makes sense for the insurer.

The post Kenya Re to set up re-takaful unit in Egypt in 2021 appeared first on International Finance.

Turaco will also use the fund to expand its business in other parts of Africa.

Chief executive at Turaco, Ted Pantone revealed in a statement that investors that took part in the funding round include Gan Ventures, Mercy Corps Ventures and Musha Ventures.

Turaco currently operates in Kenya and Uganda. Its product offerings include affordable life and health insurance products that are available at a premium starting from $2. Turaco offers the product by collaborating with its partners.

Its partners also include fintech startups through which it offers its product with lucrative offers such as cashbacks.

In the statement, Ted Pantone said, “For this round, we were blessed to be able to choose from a group of investors with different specialties. These range from social impact and value alignment to industry understanding and connections in Silicon Valley. In our next round of funding, we are looking for additional value-aligned investors who have the capacity to support us in our vision to insure a billion people.”

Turaco, which is headquartered in Nairobi, Kenya, secured $40,000 from Villgro Kenya last year. During the same period, Turaco was selected to join the Catalyst Fund‘s fintech accelerator programme along with three other Africa-focused and one Brazilian startup.

The startup, which was founded in 2008, has reportedly insured more than 30,000 users in Kenya and Uganda. The insurtech also has an office in Atlanta in the US.

The post Kenya insurtech Turaco raises $1.2 mn to upgrade operations appeared first on International Finance.

“The Insurance Regulatory Authority approves the transfer of the long-term insurance business of First Assurance to Barclays Life Assurance Kenya,” the industry regulator said in a gazette notice.

According to the deal, all employees of First Assurance will be absorbed by the buying company. The IRA’s clearance, which came last month, paved the way for the transfer of about 100 corporates in First Assurance’s life portfolio.

Earlier this year, while speaking about the acquisition, Barclays Life Assurance Kenya’s managing director William Maara told Business Daily that all clients with life policies at First Assurance will be transferred to Barclays. The transfer is of primarily the portfolio life insurance book business currently under First Assurance administration.

The clearance comes four months after Barclays Life Assurance Kenya invited its clients, directors, policyholders and as well as shareholders who opposed to the transfer to raise the matter with the Insurance Regulatory Authority. The deal will lead to increased competition as Absa Group, formerly Barclays Africa, is also looking to use its presence in Kenya to boost its business in the East African region. Barclays will also compete with the likes of Jubilee Insurance and ICEA Lion.

Barclays Life Assurance Kenya is owned by Barclays Africa Group Limited and local Kenyan shareholders. First Assurance, formerly known as Prudential Assurance Company is a key financial service provider in East Africa. After Barclays’ acquisition of its life policy business, First Assurance will now have general and medical insurance as its core business in the local market.

The post Barclays Life Kenya cleared to acquire First Assurance’s insurance unit appeared first on International Finance.