Kenya-based commercial bank, I&M Bank Limited has successfully acquired Youjays Insurance Brokers Limited (YIB) through its subsidiary, I&M Insurance Agency Limited (IMIAL). The move has seen the bank merge two insurance entities into one as a means of expanding revenue streams for its non-funded income portfolio.
The acquisition process began in 2017 when IMIAL and YIB entered into an agreement that IMIAL should acquire 100 percent of the issued share capital of YIB Group’s Bancassurance division.
After about 6 months of settling regulatory issues with Central Bank of Kenya, the Competition of Kenya Authority and the Insurance Regulatory Authority of Kenya, IMIAL successfully acquired the insurance broker with over 400 customers and an insurance premium portfolio of over Sh400 million (about $4 million).
According to IMIAL’s director and CEO of I&M Bank, Kihara Maina,“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.”
The Kenyan commercial bank is owned by Nairobi Stock Exchange listed I&M Holdings Limited (IMHL) which operates in Kenya, Tanzania, Rwanda and Mauritius and has a market capitalization of about Ksh51.5 billion with total assets of Ksh240 billion as at December 2017, a branch network of 84 and a staff complement of over 1,850 spread across the four countries.