South African firm Metropolitan International takes over Cannon Assurance

South African financial services group Metropolitan International has formally taken control of the operations of Cannon Assurance, after acquiring a majority stake in the Kenyan insurer.

The value of the deal, which has already been approved by all the relevant local authorities, is estimated at Sh2.4 billion or 300 million rand.

It will see Cannon Assurance and Metropolitan Life Kenya consolidate businesses.

Metropolitan and Momentum Insurance (MMI) Group Holdings is the ultimate mother company of Metropolitan Life Kenya through which the deal was signed.

The listed South African insurer is banking on the merger to grow its footprint in the region using Kenya as its hub.

“We are excited about the successful conclusion of this transaction, which not only consolidates our presence in the East African market, but is also an important milestone in our strategic expansion initiatives,” MMI Group chief executive officer Nicolaas Kruger said in a statement on Monday.

MMI currently has a presence in 13 African countries. Its subsidiary, Metropolitan Life Kenya, has operated for eight years offering primarily life insurance products to retail and corporate clients.

CONSOLIDATE LICENCES

The transaction will thus see Metropolitan Life Kenya and Cannon Assurance consolidate their life insurance licences into one and a stand-a-lone general cover permit and business.

“The wide footprint of MMI’s international division on the African continent would give us access to their technical and overall expertise,” Cannon Assurance founding member Inderjet Talwar said.

Shareholders of Cannon, which has operated in the country for 50 years now, have in turn been granted a minority stake in Metropolitan Life Kenya as part of the transaction.