Continental Reinsuarance Center. Photo | courtesy.
Britam Holdings has acquired a 30 percent stake in Continental Reinsurance Kenya in an expansion move into the reinsurance market.
The investment, valued at Sh763.8 million, places a worth of approximately Sh2.8 billion on Continental Re’s Nairobi subsidiary. The deal was executed through Britam Life Assurance and is expected to strengthen Britam’s income base while expanding its regional footprint.
Britam said the transaction delivered an immediate pre-tax gain of Sh121 million, contributing to a 53 percent rise in net profit to a record Sh5.03 billion in the 2024 financial year.
“The acquisition gives us access to reinsurance cash flows across 12 Eastern African markets, where Continental Re operates. This aligns with our long-term strategy of diversifying revenue streams,” said Britam Group Managing Director and Chief Executive Officer Tom Gitogo.
The Lagos-headquartered Continental Reinsurance underwrites risk in multiple African countries. With this latest move, Britam now has three associate companies in its investment portfolio, alongside HF Group and Kilimani Hotel Suites.
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The insurer’s associate pre-tax earnings doubled to Sh421 million in 2024, partly due to the Continental Re investment.
Market analysts say the minority stake positions Britam favourably at a time when the reinsurance industry is grappling with increased catastrophe risk, forex pressures, and compliance with International Financial Reporting Standard 17 (IFRS 17).
With Kenya Reinsurance Corporation facing pressure from foreign exchange losses, Britam’s move is expected to bolster its influence and earnings in the regional insurance space.
The Communications and Market Affairs office at Britam said the deal represents a bargain, given the Sh80.9 million gain recognised from the purchase.
“This strategic partnership allows us to expand while remaining cautious, as we observe market conditions and regulatory shifts,” the office stated.
Continental Re Kenya now joins Britam’s growing list of regional associates, helping the group solidify its role as a leading player in both life and general insurance across seven markets in Africa.
