MICROCAPITAL BRIEF: Nigeria’s Capital Express Assurance Purchases Majority Shareholding in Kenya’s Capex Life Insurance, Which Plans to Downsize to Focus on Microfinance

Capital Express Assurance, a Nigeria-based life insurance company, has purchased a majority shareholding in Capex Life Assurance, a Kenya-based life insurance company formerly known as Trinity Life Assurance. Capital Express Assurance purchased a 65 percent stake in Capex Life Assurance for USD 975,000 [1]. The remaining 35 percent stake was purchased by a group of individual Kenyan investors led by current Capex Life Assurance general manager, James Macharia [1].

According to Business Daily, a Kenya-based online news provider, Capital Express Assurance plans to launch a new business plan for Capex Life Assurance that will focus on “selling life insurance through small bank and microfinance institutions in a model known as bancassurance [and] specializing in a new microinsurance product line breaking the ground in the provision of low cost life insurance products that have been lacking in Kenya” [1].

Capex Life Assurance general manager, James Macharia stated “We have chosen the bancassurance model because it is less expensive to sell policies and has the potential to generate more premiums compared to selling through human agent[s]…We shall have products for watchmen for example, where they pay only KES 100 every month for life insurance benefit of KES 100,000 in case of death or permanent disability and 50 per cent cash back in case there is no claim in five years” [1].

Further details on the size of Capex Life Assurance are not available.

Sources and Resources:

[1] Business Daily, “Nigerian insurer buys majority stake in Kenyan company”, http://www.businessdailyafrica.com/Corporate+News/-/539550/1171432/-/rp1905/-/

MicroCapital.org Article, April 15, 2011, “LeapFrog Makes $13.5m Equity Investment in Apollo Investments for Microinsurance in Kenya, Uganda, Tanzania”, https://www.microcapital.org/microcapital-brief-leapfrog-makes-13-5m-equity-investment-in-apollo-investments-for-microinsurance-in-kenya-uganda-tanzania/

MicroCapital.org Article, March 3, 2011, “UAP Insurance Limited, Syngenta Foundation, Safaricom Launch “Kilimo Salama Plus” to Include Crop Microinsurance”, https://www.microcapital.org/microcapital-brief-uap-insurance-limited-syngenta-foundation-safaricom-launch-kilimo-salama-plus-to-include-crop-microinsurance/

MicroCapital.org Article, December 27, 2010, “International Finance Corporation (IFC) Expands Microinsurance in Kenya and Rwanda through Syngenta, International Livestock Research Institute, MicroEnsure”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-expands-microinsurance-in-kenya-and-rwanda-through-syngenta-international-livestock-research-institute-microensure/

MicroCapital.org Article, December 7, 2010, “Cooperative Insurance Company (CIC) of Kenya Launches M-Bima, Mobile-to-Mobile Premium Payment Program”, https://www.microcapital.org/microcapital-brief-cooperative-insurance-company-cic-of-kenya-launches-m-bima-mobile-to-mobile-premium-payment-program/

MicroCapital.org Article, August 5, 2010, “Kenya Insurance Regulation May Have Negative Impact on Microinsurers”, https://www.microcapital.org/microcapital-brief-kenya-insurance-regulation-may-have-negative-impact-on-microinsurers/

MicroCapital.org Article, June 28, 2010, “As Kenyan Insurers Look to Follow Microfinance Lead, Equity Bank and Safaricom Collaborate to Expand Mobile Payment Methods to Microinsurance”, https://www.microcapital.org/microcapital-brief-as-kenyan-insurers-look-to-follow-microfinance-lead-equity-bank-and-safaricom-collaborate-to-expand-mobile-payment-methods-to-microinsurance/

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