Blak, a subsidiary of Absa Group, has announced plans to assume the life insurance portfolio of First Assurance Kenya, including 100 corporate clients, with the transition set for June 30, 2019, pending regulatory approval.
William Maara, Blak's managing director, stated in a notice that all life insurance policies held by First Assurance would be transferred to Blak, allowing the latter to expand its market presence. First Assurance will refocus on general and medical insurance following the restructuring.
The acquisition follows Absa Group's 2015 purchase of First Assurance for Sh2.9 billion, which included a Sh700 million capital injection. Maara emphasized that employees from First Assurance's life insurance division would be retained by Blak, addressing concerns about job losses.
Clients, shareholders, and stakeholders opposing the transfer were urged to file complaints with Kenya's Insurance Regulatory Authority by March 31, 2019. The move positions Blak to compete with industry leaders like Britam, Jubilee Insurance, and ICEA Lion, which collectively hold significant market shares in life insurance.
