Britam to acquire DRC insurer for $50M by Q4 2024, targeting 15% annual premium growth and 10% market share by 2028.
Britam Holdings Plc, one of Kenya’s top financial services and insurance firms, is making a bold move into the Democratic Republic of Congo (DRC). The company plans to acquire a local insurance firm for $50 million (approx. KSh 6.5 billion) as part of its long-term goal to become a leading pan-African brand.
This acquisition will mark Britam’s seventh market in Africa, adding to its current presence in Kenya, Uganda, Tanzania, Rwanda, South Sudan, and Mozambique.
Why the DRC?
The DRC has a population of over 95 million, but insurance penetration remains below 1%. This makes it a high-potential market for Britam.
“We are looking at the market seriously and hope to enter in the next six to eight months through an acquisition,”
— Tom Gitogo, Group CEO, told reporters in June 2024.
By acquiring an already established insurer, Britam avoids the hurdles of building from scratch and gains a faster route to profitability.
Financial Strength and Growth Strategy
Britam has a solid growth record. In 2023, it reported a net profit of KSh 2.7 billion (US$20.9 million) — up 20% from 2022. Its gross earned premiums rose to KSh 40 billion, driven by strong life insurance and investment performance.
The company plans to invest $200 million over the next six years to expand in 12 African countries by 2030.
What’s Expected from the DRC Entry?
Once finalized, the DRC deal is projected to:
- Boost gross earned premiums by 15% annually for the next five years
- Contribute KSh 5 billion in new revenue by 2028
- Help Britam gain 10% market share in the DRC insurance sector
- Increase profit margins through economies of scale
Risks and Rewards
While entering a new market always comes with regulatory and operational risks, the DRC’s underdeveloped insurance sector presents more upside than threat, especially for a well-capitalized and experienced firm like Britam.
The acquisition is pending regulatory approval and is expected to close by Q4 2024.
Conclusion
Britam Holdings’ move into the DRC is a strategic step to diversify its revenue and tap into one of Africa’s least saturated insurance markets. With a strong foundation, clear goals, and the right acquisition, Britam is well-positioned for long-term success across Africa.